While much of the rhetoric surrounding Aptos this week has ranged from ridiculous comments to outright condemnation, the newest cryptocurrency on the market is getting a lot of attention and generating significant volume in the first few days of trading.
As of Friday afternoon, APT, the original currency of Aptos blockchainTrading volume has reached at least $1.3 billion since Wednesday, the first full day of trading, according to CoinGecko. It’s an interesting counterpoint to all the cynicism the project has taken on Crypto Twitter, the closest thing the industry has to a town square.
Highly Promoted Blockchain Introduced its main network on Monday. Over the next 24 hours, the project took a lot of criticism Because of the lack of transparency surrounding cryptocurrency—namely, details of the cryptocurrency’s economic model and distribution.
Cobie Cobie targeted exchanges that planned to list APT tokens before the announcement of Tokenomics.
Then, when details of his token distribution were leaked, the team confirmed it in a blog post and took another round of criticism.
That’s because 51% of APT’s supply comes from venture capital firms. For some traders, such as the investor using “iamDCinvestor” on Twitter, this is an indication that the entire project is a “very clear cash grab”.
The semi-categorical rejection of Aptos,
Created by former Libra developers as a very straightforward cash acquisition (and funded by the usual suspects taking up billions of space),
It might be one of the most significant social changes we’ve seen in space in a while
On Tuesday afternoon, Mo Sheikh, co-founder and CEO of Aptos ., took to Twitter To address concerns and acknowledge that the launch “could have been better”. All of this happened right before the coin began trading that evening. Then, in the first few hours, APT decreased by 40%.
Its price hasn’t improved much since then. As of Friday afternoon, it is trading at $7.38 – 46% down from its first trade, according to CoinGecko. However, the market capitalization of the token is $963 million. This puts it ahead of KuCoin, TrueUSD, Pax Dollar, and MKR.
All the interest, even if most of it is negative, means that there have been many APTs changing their hands on cryptocurrency exchanges.
The Binance platform has accounted for more than half of APT’s total daily spot trading each day since the token was launched on Tuesday night. As of this writing, the world’s largest cryptocurrency exchange has seen $193 million worth of trades, or 57%, across the five APT trading pairs in the past 24 hours.
Huobi Global, which typically falls outside the top 10 crypto exchanges by volume, has seen a significant portion of APT’s trades. It made up 11% of the total spot volume and saw $39 million worth of APT traded across its three pairs (Tether, USD Coin and Tron’s USDD) since yesterday.
This means that the APT-USDT pair generated more volume on Huobi than the USDC, Solana and Huobi Token-USDT pairs.
Meanwhile, the permanent contracts the Aptos team was on were rumor Having asked exchanges not to start so quickly, I have seen a lot of action.
Exclusive: Aptos has asked major exchanges not to list perpetual contracts within two weeks, but Binance has announced that the APTUSDT perpetual contracts will be listed on October 19. Aptos urgently convinces Binance to stop. https://t.co/4ADxe1xSS8
The crypto newsletter writer, who uses “alpha_pls” on Twitter, was among several traders urging traders to “Send Aptos to zero. ”
The way traders can do this, or at least bet against an asset, is to open short derivative trades.
A futures contract is a type of derivative that allows investors to bet on the price movements of an underlying asset. Short selling on an asset means that the investor believes that the price will go down; Being long on an asset means that the investor is betting that its price will rise.
A standard futures contract expires in a few weeks, months, or even years. But the perpetual contract remains open – which means that the trader remains at risk of being liquidated if the market swings too much in one direction.
Open interest, or APT’s open derivative contract, peaked at 11 a.m. on Wednesday, October 19, at $153 million, according to quinless. Around that time, APT recovered slightly from its low of $6.75. Since then, open interest has remained fairly stable at around $130 million.
Coinalyze aggregates the value of open APT futures positions across Binance, FTX, OKX, Huobi, Bybit and Bitmex. It doesn’t take over all the exchanges that offer perpetual contracts for Aptos, but it’s the largest.
In the past 24 hours, there have been $2.5 million liquidations in APT futures – a sign of how volatile the price can be and perhaps how overzealous traders are in betting on its fate.
This makes the Apto contract the fifth highest liquidation contract in the past 24 hours, behind Bitcoin, Ethereum, Ripple’s XRP and Solana, according to Coinalyze.
Most exchanges will automatically liquidate a trader’s assets or sell them for cash, if they cannot access margin on their future position. Liquidation risk increases if the underlying asset is particularly volatile, or the trader has a high leverage on his position, or both.
When the trade is raised, it means that the trader has placed a bet with money he does not have in his account and basically borrowed from the exchange. For example, Binance allows traders to open perpetual APT contracts with 25x leverage. This means that anyone can open a $2,500 contract with just $100.
However, if the price of APT rises when the trader has been betting on its decline, he may have to add more margin to $100 or risk liquidation. Liquidation means that the trader loses all his money and usually has to pay a liquidation fee to the exchange.
Aptos – very brief launch.
The leverage is very high (9% of the supply is already in circulation), while the funding rates are very negative.
Early Wednesday morning, 9% of APT’s circulating supply was tapped into the Apto perpetual contract, according to Arcane Research analyst Vetle Lunde. He pointed out that the financing rates were very negative on TwitterWhich means that APT short selling traders had to spend a lot of money to maintain their positions.
But Aptos funding is moving forward Binance And the FTX She has been near or has recently tested positive. This means that traders who have managed to hold on to their short positions may push the price of the token lower soon.
The opinions and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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