Sensational Aptos Dumped in Seconds After Team Makes Catastrophic Mistake

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Arman Shirinyan

Cryp­to project made a lot of noise in indus­try, fail­ing miserably

Aptos blockchain took a major part of the cryp­tocur­ren­cy mar­ket’s atten­tion min­utes after launch­ing the main­net and get­ting their APT token list­ed on Binance. Unfor­tu­nate­ly, the team behind a Lay­er 1 blockchain that uses the Move pro­gram­ming lan­guage did not spend enough time build­ing prop­er tokenomics.

After the sud­den release of an air­drop with­out the anti-Sybil attack sys­tem, APT got hit with enor­mous sell­ing pres­sure that led to the flash crash of the token from $15 to $13. Large sell­ing orders launched a chain of active sell­ing, which slow­ly pushed the token’s price to $7 at press time.

Sybil attack pro­tec­tion is the foun­da­tion of any air­drop; it does not allow one user to cre­ate many pseu­do­ny­mous iden­ti­ties and gain more val­ue with it. With­out the prop­er pro­tec­tion, one user can cre­ate as many accounts or entries to an air­drop and then imme­di­ate­ly sell them on the mar­ket, which has been the case with APT on Binance.

A lack of pro­tec­tion and prop­er plan­ning led to a cat­a­stroph­ic spike in sell­ing pres­sure as users were dump­ing their hold­ings with only one trans­ac­tion, which is the best recipe for quick­ly dis­man­tling the asset on a decen­tral­ized mar­ket.

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What’s Aptos?

Aptos is a rel­a­tive­ly young blockchain that has already attract­ed mil­lions from ven­ture cap­i­tal­ists thanks to being built with a Rust-based pro­gram­ming lan­guage called Move. Planned fea­tures include fast trans­ac­tion pro­cess­ing, high-lev­el secu­ri­ties and a par­al­lel exe­cu­tion engine.

The blockchain is based on the Diem blockchain ini­tia­tive devel­oped by Meta and aban­doned recent­ly. To con­tin­ue devel­op­ment, the team behind Diem decid­ed to cre­ate a sep­a­rate project, which is going to focus on its pre­de­ces­sor’s goals.



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