Cryptocurrency trading and investing veteran LightCrypto (@lightcrypto on Twitter) shared with his 172,000 followers an alarming statement about the Aptos (APT) team's possible mass-selling of its token allocation.
Aptos (APT) team started "selling high," expert says
In a detailed Twitter thread, LightCrypto displayed how the wallet that is associated with the core team of the Aptos (APT) blockchain is sending tokens to Binance (BNB), the largest cryptocurrency exchange. So far, it has released over $20 million in equivalent, while over $1 billion is yet to be injected into the market.
Aptos dev team wallet has started feeding the Korean ducks, ~$20mm in spot sent to Binance in the last hour.— light (@lightcrypto) January 28, 2023
$1b in inventory remains in the wallet.
The tightly controlled supply has activated. pic.twitter.com/Ll75mTX0TQ
It is highly likely that these Aptos (APT) tokens were absorbed by the Korean retail market, the analyst suggests. The dynamics of Upbit's asset flow are clear evidence of this fact. Also, he noticed that a whopping $400 million open interest on the APT/USDT pair is accompanied by "paper thin" spot order books.
As covered by U.Today previously, Aptos (APT) is among the best performers of 2023 in the mid-caps segment. In the last three weeks, its price spiked by almost 500% and set a new all-time high of over $18.36.
The official "unlock date" for early-bird investors and core contributors is set to come in November 2023. However, the APT supply remains whale-dominated: the project was criticized for its shady and unbalanced tokenomics since its mainnet release.
Next-gen blockchain or "PvP gambling"?
Jordi Alexander, CIO of Selini Capital and blockchain advisor, mocks the optimism of Aptos (APT) purchasers and the "next-gen-L1" narrative the project is surrounded by.
APT another display of how Paleolithic the industry still is.— Jordi Alexander (@gametheorizing) January 28, 2023
Preppy VCs thought they were investing in promising L1 tech. Lolz.
Pure PvP gambling that only ends with unlocks extracting all the Won from the Korean Squid Gamers
p.s. short is overcrowded, dont play unless Pro. https://t.co/xaychpJgVw pic.twitter.com/JY1gjXDWiy
Meanwhile, he recommended retail investors to avoid opening short positions on the APT/USDT pair right now as VCs are able to "outsmart" retail yet again.
Introduced in February 2022, Aptos (APT) is among the spin-offs of Meta's (then-Facebook) blockchain initiative Diem based on its own programming language. An eccentric approach to blockchain scaling is its core technical novelty.
In uber-bearish 2022, the blockchain managed to raise $350 million in two rounds that yielded contributions from the likes of Andreessen Horowitz, Multicoin Capital and others.