(CoinDesk Analysis Team)
Recently-launched blockchain Aptos published a summary of its token distribution and incentive plans this morning amid reports of a slower-than-expected start and community criticism surrounding the amount of its native APT tokens held by private investors.
The initial total supply of Aptos tokens (APT) at Monday’s mainnet launch was 1 billion tokens, with some 510 million distributed to community members, 190 million to core developers and the remaining to the Aptos Foundation and private investors.
The Aptos Foundation holds 410 million tokens overall, which will be released over the next ten years. Of that, 125 million APT is available initially to support ecosystem projects, grants, and unspecified community growth initiatives, and a smaller 5,000,000 APT available initially to support the Aptos Foundation initiatives for the Foundation category.
Another 100 million tokens are held by Aptos Labs, a centralized entity that develops and maintains the blockchain.
Aptos said tokens held by private investors and current core contributors are subject to a 4-year lock-up schedule from the mainnet launch.
There are rewards for holders who stake their tokens to contribute to the network’s upkeep. “Currently, the maximum reward rate starts at 7% annually and is evaluated at every epoch,” the post read.
“The maximum reward rate declines by 1.5% annually until a lower bound of 3.25% annually,” it added, pointing out that all transaction fees are currently burned but this may change based on future governance decisions made by the Aptos community.
Community sentiment toward the token plan remained largely tepid, with most criticizing the large allocation for developers.
Bitcoin completes consolidation in a triangle
(Alexander Kuptsikevich – FxPro Financial Services Limited)
Market picture
Bitcoin is up 1.4% in the past 24 hours, trading at $19,550 at the time of writing. U.S. stock indexes had stepped decisively higher the day before, and index futures are developing their gains by the start of European trading. A buoyant stock market backdrop supports appetite for crypto assets, but overall fluctuations remain unusually subdued.
Bitcoin’s fluctuations since June fit into a triangle with a descending resistance line and horizontal support of $18.8K, and now the price moves at the right angle of the figure. Typically, this situation is resolved by a spike in volatility on the way out of the range. The confirmation of the break of the long-term consolidation should be looked for not earlier than the exit of the previous highs at $20.4K or the failure under $18K, with more probability of the second variant. However, we note that the downtrend in BTCUSD has lasted almost a year, taking away more than 70% of the peak price and becoming attractive for long-term buyers.
According to CoinShares, investments in crypto funds rose slightly last week after a slight outflow the week before. Fund inflows totalled $12 million. Bitcoin investments increased by $9 million, and Ethereum investments decreased by $4 million. Investments in funds that allow shorts on bitcoin increased by $7 million. Investors remain apathetic; flows over the past five weeks have not exceeded 0.05% of assets under management, CoinShares noted.
News background
Bitcoin has the potential to break the link to traditional risk assets. This could happen thanks to investors’ realisation that most threats come from governments and fiat currencies, according to LookIntoBitcoin. Based on previous cycles of investor capitulation, the timing is now suitable for strategic BTC buying.
According to GlobalData’s worldwide survey of asset managers, wealthy investors still want to invest in digital assets. And because cryptocurrencies only account for 1.4% of their portfolios, they are willing to take maximum risk.
French investment bank Société Générale has obtained permission from local regulators for its subsidiary to store, buy, sell, and exchange cryptocurrencies.
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According to a new Coincub report, in the third quarter of 2022 Germany became the most favourable country to run a crypto business, climbing to first place in the rankings with Switzerland, Australia, the UAE, followed by Singapore. The US slipped from first place to seventh because of unfavourable taxation policies and a lack of clarity on crypto regulation.
Read Bitcoin price ‘easily’ due to hit $2M in six years – Larry Lepard
