Thread by @Giliantemporary

Massive thread 👇🧵

Aptos is a protocol based on Diem (which became Move) developed by Facebook who planned to launch in 2020 but only released rudimentary experimental code and abandoned Diem in January 2022 probably because of regulatory issues (source Wikipedia).

It’s releasing into an oversaturated L1 market with what seems to be very little innovation on competitors and in most cases far behind on the competition. They are backed by the same VC’s who backed e.g. Luna and Celsius and who made leveraged loans to do so...

...which made the whole market crash just a while ago.

Let’s take a simple look at the tech and why they are not innovating enough. Source of info: aptos.dev

It uses lockup periods (and slashing) for staking. There is a minimum and maximum lockup period (they were talking about years), the longer the higher your rewards and you can extend the lockup period if you want to maintain high rewards. Lockups are an ‘easy’ solution for...

...a security problem the vast majority of the market uses. It has a negative impact on liquidity and adoption and is a barrier to entry for validators (the higher the barrier, the less validators, the less decentralized). This liquidity problem can be solved by e.g. custodial...

...services who stake the tokens for you and give a sort of IOU (acknowledging they are in debt with you) tokens in return which can result in a lot more problems (e.g. centralization of stake like with Lido on ETH).

Cardano has liquid staking build in (while maintaining high security) which solves all these issues on a protocol level AND results in better decentralization. Other protocols also have better solutions than years of lockups and slashing. Even if Aptos can improve this in...

the future, which I highly doubt, they would still be years behind their competitors.

It uses a fee market to prioritize transactions and deal with congestion. We have already seen what that does. Ridiculous fees excluding people from using it and other issues like frontrunning

It uses an account based ledger model like almost every other smart contract platform while Cardano, Ergo and some others use the Extended UTxO model. EUTxO is easier to scale and has many other advantages like predictable costs/fees (determinism) or DEX devs being able to...

...eradicate impermanent loss:

https://twitter.com/cardano_whale/status/1451835817635172358

So again, more of the same and nothing new while the competition is ahead already.

Can’t find much about their AptosBFT consensus algorithm except for a few mentions in their documentation and a short overview on Github which didn’t tell me much. I can´t tell how secure or decentralized it is. This tweet is not reassuring at all:

https://twitter.com/cryptoalvatar/status/1551878556984262658

Why "home validators" (inclusive accountability) are detrimental to these protocols: This literally means that Aptos won’t be secure and decentralized in the future and you can just as well use a centralized database, this means it’s worth nothing.

Maybe their Move virtual machine is a big improvement? I don’t understand it enough to judge.

There is very little information out there about Aptos. I have so many questions but no answers. This is also a red flag but it’s a fairly new project so I give them some slack.

To me it just looks like more of the same #solunavax. Very likely another VC cash grab. Influencers boasting TPS stats and other meaningless hype metrics and statements is another big indicator that this is just a VC cash grab.

This is a textbook tweet to mislead unexperienced retail investors (highly likely paid by VCs):

https://twitter.com/milesdeutscher/status/1552281885438488577

Let’s dive into that thread and call some of the bs out. If you are not interested you should stop reading and maybe scroll down to the end.

It has already been establish a long time ago that tps numbers can’t be compared correctly (EUTxO does thousands of payments in 1 transaction, you can’t compare that to account based models that do 1 payment per transaction), can be easily inflated (Solana did this with...

...consensus votes and so did a protocol in 2018, which I forgot the name of because it doesn’t exist anymore, who claimed 1M tps but it was just on a testnet with a couple of nodes) and mean very little when it comes to scaling these protocols. This guy is talking about...

...“a theoretical limit of 160,000 tps” so nobody should care at all anyway. Theoretically I can do a hundred backflips, I did calculations on my computer, but in reality…

Listing investors and how much they invested is another statement just to create hype.

EOS had a $4B ICO and is nowhere to be found. Tezos had a massive $1B warchest but so far has not been a good investment relatively speaking. Funds are not an issue in crypto and have clearly not been an indicator of success, so why would you get hyped over a $350M fundraiser?

And just a couple of months ago it became very clear how incompetent VCs are with their predatory investment strategies. Several got liquidated and literally made the whole market crash. Novogratz ‘failed’ with EOS and Luna while trying to pump and dump on retail.

Coinbase is also sh*tting the bed. So why get hyped about them investing?

I invested in a project that wanted to do Airbnb on the blockchain in 2018. Founders were ex Microsoft engineers. It was just a cash grab. Them being ex Facebook means literally nothing.

He says Move is impressive and quotes one random guy saying it is. But that doesn’t make it so. He says the tech is so exciting that someone changed careers for it, this literally happens all the time and says nothing about how good the tech is. Just more bs to try to manipulate.

Minting millions of NFTs in under an hour on a testnet ‘for fun’ also means nothing. It’s a testnet, see my comment about tps.

“Aptos approaches tech developments with user experience in mind. If executed correctly, it could offer a major competitive advantage.” This is a prime example of a sentence that literally says nothing at all. Any serious project has UX in mind when developing. And if you...

...execute things correctly they can give you an advantage, that’s why other projects have so much more advantages over Aptos.

Boasting that e.g. Coinbase and Binance are developing the protocol is a massive red flag as well. They are exchanges who made terrible...

...blockchain products and who most likely just want to get some returns out of it and nothing more. This is what Binance created (the exact opposite of supporting decentralization/solving problems for people, it’s just greed):

https://twitter.com/alex_valaitis/status/1552724471055892481

Their focus, according to him, is DeFi, NFTs and gaming. Again, MORE OF THE SAME. If the focus is on the three most hyped things in this space instead of solving real problems like voting, counterfeiting, credentials, etc. then it’s wise to question their intentions.

His dev numbers (8k) and amount of node operators (4k) seems like a lie. In their documentation it says they start with a 100 validators and hope to get to 500-1000 in the future. And 8k devs in half a year seems out there. Cba to verify.

He talks about Aptos having a grant program. His logic is “Capital > Developers > Users > Transactions > TVL > Price”. I’m sorry but it doesn’t work like that, that’s too simplistic. Let’s not get into how TVL is a terrible metric to follow because this thread is already...

...too long to be just a twitter thread. And literally everyone has some sort of grant program, so why would Aptos price be send off to the moon and not some other project? Cardano has Catalyst which has been funding, idk, over a thousand projects now with tens of millions...

...of dollars? Again, more of the same and too much hype over nothing.
The rest he says is just fluff. Everyone has a DEX, a wallet, etc. Nothing special.

You can trade Aptos hoping it will go up like the ones before just because VCs pump the price but unless you have experience or a good strategy they will most likely dump before you and/or make you lose money in some other way.

They bought with a discount before you had a chance and they have a lot more resources and information. You will always be at a disadvantage.
Anything to add, have questions or want to use this info? Please do.

Just more of the same. #solunavax Never forget. Critical thinking is important.