Aptos (APT) Trading to Go Live—Why Investors May Be Getting Ready to Short It

Shortly after the opening of APT trading tonight, both Binance and FTX will introduce perpetual futures contracts, allowing traders to wager against the price of an asset.

 

Aptos, a layer-1 solution funded by venture capital that sprang from the ashes of Meta’s abandoned Diem project, opened its mainnet on Monday. And the launch of the APT cryptocurrency, which is local to the platform, is imminent.

 

Comparable to ETH and SOL, APT is the currency of Aptos. Later today, Aptos tokens (ATOS) will be tradeable on Binance, Coinbase, and FTX. Coins can be bought and sold on MEXC, ByBit, Bitfinex, Huobi, and OKX beginning at 9 p.m. ET on October 18. (or 1 a.m. UTC on October 19).

 

However, several of these markets are introducing a new APT product. An hour after APT begins trading, Binance, FTX, and OKEx have all committed to releasing perpetual contracts for the token.

 

Futures contracts are one sort of investment instrument, and investors can use perpetual contracts to speculate on the future value of a given asset. An investor who bets on a decline in the value of an asset is said to be “short” that asset, while a bullish investor is “long” it. Aptos was released on Monday, and since then the project and its early investors have been the target of widespread criticism.

 

One of the major complaints is that the project team took so long to announce the allocation of tokens, even though this information had already been disclosed. But as word spread that 190 million APIT core developers and 51% of the initial 1 billion APT supply were already in the hands of venture capitalists, the attacks continued.

 

https://twitter.com/cobie/status/1582208726639206400?s=20&t=sTeIuaRiCl4AT1bd7jpBzg

 

This is why many people are worried about the introduction of perpetual options shortly after the token begins trading. The amount of public disapproval for the APT token and its tokenomics may be measured in real time by the open interest in options contracts that bet against the new token.

 

Regular periods of expiration and settlement are built into the terms of ordinary futures contracts. This holds true for commodity, stock, and cryptocurrency exchanges alike. Options on cryptocurrencies such as tiny Bitcoin and Ethereum on CME, for instance, expire every week or every month. What this means for investors is that they can speculate on the future price of BTC and ETH over a period of weeks or months.

 

There is no time limit on a perpetual options contract. It gives the buyer the right to buy or sell a fixed amount of the underlying asset (in this case, APT) at a predetermined price on or before a certain date.

Exclusive: Aptos asked major exchanges not to list perpetual contracts within 2 weeks, but Binance announced that APTUSDT perpetual contracts will be listed on October 19th. Aptos is urgently persuading Binance to stop. https://t.co/4ADxe1xSS8

— Wu Blockchain (@WuBlockchain) October 18, 2022

 

Crypto writer Colin Wu tweeted on Tuesday morning that the Aptos team has been trying to convince Aptos investor Binance to delay the debut of its perpetual APT contracts for two weeks. This would be done, presumably, to prevent shorting and a subsequent decline in the price of APT. But Wu didn’t back up his assertion with any documentation.

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