Blockchain

Could Large Venture Capital Involvement Be an Issue for Aptos?

As the newly launched layer-1 chain gains momentum and plans to launch an NFT.

Blockchain

Could Large Venture Capital Involvement Be an Issue for Aptos?

As the newly launched layer-1 chain gains momentum and plans to launch an NFT.

The newly launched layer-1 blockchain Aptos has been the talk of Crypto Twitter for the last week — made up of mixed takes and opinions on the chain and the heavy involvement of venture capital investment.

Additionally, the NFT sector seems to have taken an interest in the chain due to its claims of extremely high transaction capacity.

“A Network For The People”

Aptos has stated that it is on a mission to be “the safest and most scalable layer 1 blockchain” on the market. Dubbed by some as a “Solana killer,” Aptos was designed by Meta alums who were once part of Facebook’s blockchain project Diem.

The main goal of the chain is to offer support for the broad world of Web3, including NFT, DAO, and Decentralized Finance applications.

Taking a note from their time developing Diem, Aptos developers identified the value in what they call “parallel execution,” which by its simplest explanation combines transactions, rapidly accelerating the process and resulting in extremely fast transaction per second (TPS) capabilities.

Concern Over Venture Capitalists

Despite being “for the people,” over 51 percent of the chain’s native token APT lies with venture capital (VC) investors and partners like FTX Ventures, Jump Crypto, a16z, Coinbase Ventures, Binance Labs, and more — which it raised over $400,000,000 USD from.

Following the release everything from memes to accusations of Aptos being a “blatant cash grab” circulated Crypto Twitter.


Other concerns stemmed from the lack of clearly defined tokenomics before launch, with individuals like crypto podcaster Cobie tweeting “How can there be a spot market if [people] don’t know what the emissions schedule or total supply of coins is?” A concern shared by others in the community.

Still, There is a Demand

Hype and demand to utilize the chain for NFT applications began after the network claimed to be able to execute 160,000 transactions per second — which would make it one of the fastest on the market. Although, following the launch, it was only processing roughly 10 to 12 TPS.

Aptos CEO Mo Shaikh tweeted that the current TPS doesn’t represent total network capacity and explained that the network is effectively just waiting for more activity.

Despite the concern of VC involvement, there is a large portion of the Web3 space that is excited about the newly launched layer-1 chain — which was reflected in the first day of trading, as APT reached over $1.3 billion USD in volume.

Though the token is down approximately 33 percent since its launch, which is not unusual for token airdrops, it seems the NFT space is interested in giving the chain a go. Whether or not Aptos will be able to sustain the demand and network strain will be one of the main determining factors to its future success.

In other news, see why Ark’s Coinbase stock purchase represents more than an investment.

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