Aptos Foundation announced more than 20 million APT tokens for the first testnet users. However, the airdrop caused APT prices to plummet after Sybil addresses deposited a large number of APT tokens on Binance. According to X-explore, Binance registered 28,000 users who deposited 16.3 million APT tokens, with the Sybil address accounting for nearly 40%.
Sybil attack risk on Aptos
Aptos Foundation on Wednesday announced that 20,076,150 APT tokens would be broadcast to 110,235 participants. The tokens were only distributed to users who have “completed an Aptos Incentivized Testnet application or hit an APTOS:ZERO testnet NFT”.
WuBlockchain in a previous tweet reported that the lack of anti-Sybil attack protection for airdrop by Aptos Foundation caused some people to get a large number of APT tokens. One Sybil address even sold 189,567 APT directly on Binance. It resulted in the APT token price falling from $15 to below $13, later it dropped below $7.
According to further analysis by X-explore, Binance had 28,000 users depositing 16.3 million APT tokens, with the Sybil address accounting for nearly 40%.
Deposits continued to decline, but the ratio of Sybil addresses to regular users’ deposits remained the same. In fact, the Sybil addresses account for over 65% of total deposits. Also, 7 major Sybil addresses account for over 50,000 APT on Binance.
Furthermore, the team found a correlation between the APT price on Binance and the deposit volume. The APT price fell to a low of $6.7 due to massive deposits from airdrop addresses. Thus, it caused selling pressure on the APT price during the early days of its launch, despite community interest.
Users criticized APT Tokenomics
Several users criticized Aptos for its APT tokenomics and for controlling most of the token supply. According to the Aptos Foundation, 51.02% of APT tokens will be distributed to the community, 19% to core contributors, 16.50% to the foundation and 13.48% to investors. Users in particular were disappointed with the four-year lock-in period.
At the time of writing, APT price is trading at USD 7, up nearly 1% in the past 24 hours. The 24-hour low and high are $6.83 and $8.38 respectively.
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