 | Those who were around would remember when Aptos was first released and the reception to it was..not good. The price started tanking upon its release to the public market and it was widely criticised as a token for VC firms and insider who held large amounts of the token supply for themselves and anyone who bought it would be at the whims of whatever insiders decided to do with the token. In particular, if they decided to sell(after lockup period expires) it be over for you. This argument seems to largely hold up today. Taking data from apscan, the "Rich List" show some truly baffling data. 73% of the supply is held by the top 50 wallets. Further, 92% of it is held by the top 100 wallets. From that alone there seems to be no merit to buying the token. Just a glance at the data below shows you the top 5 holders have 10% of the supply. But it gets worse. The thing is also 83% of Aptos is staked. What does this mean? This means that less than 20% of Aptos is circulating supply. With such little Aptos circulating, the market supply is low so the price would tend to increase. There really bad news is that this is looking VERY similar to what SBF did with FTX. Print and buy up tons of FTT off the market so you manipulate the price upward. You can never actually sell all the FTT(Aptos) else the price would tank but you may be able to use it for loans on the paper value. Now, I am not saying the Aptos insiders are using it for loans, though they very well could. But they are using it for something else. Remember the 83% of Aptos that is staked. Staking means you are earning a reward for locking up that Aptos. And 83% of the supply is staked i.e. earning free money and the Aptos Foundation has made sure that the tokens won't be dumped and crash the price with their lockup policy. The Aptos Foundation initially set staking rewards around 7%. The reward rate was still around 7% recently and was set to drop to 5.5% as we are just a year after its launch. So what we have here is tons of the supply locked up to encourage(manipulate) the price upward. The policy and unlock schedule has made sure that no holder will sell and tank the price. But all the holders are(at least up till recently) earning 7% interest. They will also continue earning 5.5% interest for the next years and a minimum of 3.25% interest for every years thereafter. This smells badly like a FTT Ponzi. Lock up a massive part of supply and manipulate price up, pay yourself free money in high staking rewards on these locked up tokens and when the time comes and lockup period end just dump em. And profit. And of course, your profit will come off the backs of retail either ignorant or dumb enough to still buy in. https://apscan.io/accounts?pageSize=50&page=1 https://aptosfoundation.org/currents/aptos-tokenomics-overview [link] [comments] |
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