When it comes to the volatile and unpredictable realm of cryptocurrency, a partnership announcement can often breathe new life into the market performance of a token. This is evidenced by the robust 15% surge in APT token’s market price which came on the heels of news about its collaboration with tech giant Microsoft.
However, an elephant in the room loudly trumpets a warning. Data suggests that a sizable chunk of APT, equivalent to 2% supply or approximately $33 million, is soon to be in circulation as it is set to be unlocked on August 12. The impact of such action could be a decline in token price if the newly released tokens are sold off and demand fails to cater to the sudden supply infusion.
Over the years, Aptos has attracted criticism for its tokenomics strategy labelled as predatory and for concerns about uneven token distribution. It is a fact to be noted that just below 50% of the issued 1 billion tokens were allocated to core contributors, investors, and the Aptos Foundation. In stark contrast, during its 2015 issuance, Ethereum allocated merely a fifth of this, around 10% of supply, to its founding team and a similar amount to the Ethereum Foundation.
Despite the potential storm clouds, there’s plenty of sunshine peeking through. The price bump on Wednesday coincided with Aptos Labs, a blockchain developer with roots in Meta Inc, announcing it was primed for expanding its product line with the assistance of Microsoft’s advanced artificial intelligence technology. Chatbots and AI tools capable of smart contract programming are among the exciting offerings in store.
In perusing the performance of APT, we find it standing taller by over 9% at its recent $7.31 position. While the crypto sphere keeps a wary eye on the potential implications of the forthcoming unlock event, it is clear that the stirrings within Aptos are being monitored keenly by the market.
As the crypto landscape is often tumultuous, participants continue to resolutely seek opportunities for profit amidst the turbulence. The Aptos and Microsoft partnership, countered by the looming token unlock, serves as a testament to challenges and opportunities inherent in the space. However, as always, knowledge is power in this world where partnerships and product pumps can make or break a token’s market trajectory.
Edited by Parikshit Mishra.
Source: Coindesk
