Lưu trữ cho từ khóa: blockchain games

Bitcoin

Did Jump Trading just ‘Fracture’ the trust of the entire crypto industry?

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Did Jump Trading just ‘Fracture’ the trust of the entire crypto industry?

Is Jump Trading responsible for the collapse of DIO tokens? How did a market maker supposedly take advantage of a partnership with Fracture Labs to pocket millions and leave chaos behind?

Jump Trading, a prominent name in the crypto trading space, is now entangled in a legal battle. Fracture Labs, the creators of the blockchain-based game Decimated, has sued Jump, accusing the firm of executing a “pump and dump” scheme.

At the heart of the lawsuit, Fracture Labs claims Jump Trading exploited its role as a market maker to inflate the value of its DIO gaming token artificially. Once the price peaked, Jump allegedly sold off its holdings, triggering a sharp price decline.

How does a collaboration designed to promote a token’s success devolve into allegations of fraud and manipulation? Let’s break down the sequence of events leading up to the lawsuit and why it has drawn so much attention.

What happened between Jump Trading and Fracture Labs?

On Oct. 15, Fracture Labs filed a lawsuit against Jump Trading in an Illinois district court, accusing the firm of breaching their agreement and manipulating the DIO token.

To fully grasp the situation, we need to revisit 2021. During this time, Fracture Labs had just launched its DIO token to support its blockchain game, Decimated, and entered a partnership with Jump Trading to facilitate the token’s market introduction.

Jump Trading agreed to serve as a market maker—a role that involves providing liquidity to ensure smooth trading and price stability for the token. Market makers typically buy and sell assets to maintain balanced trading conditions, especially for newly launched tokens like DIO.

As part of the arrangement, Fracture Labs loaned 10 million DIO tokens to Jump, valued at approximately $500,000 at the time. The expectation was that Jump would assist in the token’s debut on the crypto exchange Huobi (HT), now known as HTX.

In addition to the loaned tokens, Fracture Labs sent 6 million more tokens directly to HTX, worth about $300,000, as part of its broader marketing campaign. With these preparations in place, everything seemed primed for a successful launch.

HTX played its part by heavily promoting the DIO token and leveraging influencers and social media campaigns to boost its visibility.

The strategy appeared successful — perhaps overly so. The price of DIO surged to $0.98, dramatically raising the value of Jump’s 10 million DIO holdings from $500,000 to a staggering $9.8 million in a short period.

For Jump Trading, this price surge represented an enormous windfall. The 10 million tokens they had borrowed were suddenly worth nearly $10 million. However, what followed is where the allegations of manipulation arise.

Fracture Labs alleges that Jump Trading saw the soaring price as a profit-making opportunity. Instead of continuing to provide liquidity and stabilize the token, Jump allegedly began selling off its DIO holdings in large quantities.

This mass sell-off caused a steep drop in DIO’s value, plummeting from nearly a dollar to just $0.005—a dramatic collapse that decimated the token’s worth.

The lawsuit further claims that after selling the tokens at their peak, Jump repurchased the devalued DIO tokens for just $53,000. This allowed Jump to return the 10 million tokens it had borrowed, fulfilling its obligation to Fracture Labs, all while pocketing millions in profit.

The collapse of DIO’s price had devastating consequences for Fracture Labs. According to the lawsuit, the sudden and severe drop in value crippled the company’s ability to attract new investors or sustain interest in the DIO token.

Adding to their troubles, Fracture Labs had deposited 1.5 million Tether (USDT) into an HTX holding account as a safeguard against accusations of market manipulation. This deposit was intended to reassure the market that Fracture Labs would not manipulate DIO’s price during its first 180 days of trading.

However, due to the extreme price volatility that Fracture Labs claims were triggered by Jump Trading’s actions, HTX allegedly refused to return most of the USDT deposit. This left Fracture Labs with not only a devalued token but also a substantial financial loss from their USDT deposit.

Fracture Labs is now accusing Jump Trading of fraud, civil conspiracy, breach of contract, and breach of fiduciary duty. They assert that Jump Trading abused the trust placed in them as a market maker, using their privileged position to manipulate DIO’s price for personal gain.

The lawsuit seeks damages, the return of the profits that Jump allegedly made from the scheme, and a jury trial to settle the matter. Interestingly, HTX is not named as a defendant in the lawsuit.

Jump Trading’s troubled past

The controversy surrounding Jump Trading is not new, as the firm has been under regulatory scrutiny multiple times in recent years.

In fact, both Jump Trading and its crypto arm, Jump Crypto, have faced several legal and regulatory challenges, raising concerns about their operations in the crypto market.

One of the more prominent cases surfaced in November 2023, when Jump Crypto’s involvement came under the spotlight in the U.S. Securities and Exchange Commission’s lawsuit against Terraform Labs.

The lawsuit, originally filed in February 2023, alleged that Terraform Labs and its former CEO, Do Kwon, engaged in fraudulent activities and sold unregistered securities, focusing on their failed algorithmic stablecoin, TerraUSD (UST).

The collapse of UST in May 2022 led to billions of dollars in losses and significant turmoil across the broader crypto market.

According to the SEC, when UST first began losing its dollar peg in 2021, Terraform Labs collaborated with Jump Crypto to artificially boost the stablecoin’s value. 

The regulator claimed that Jump Crypto purchased large amounts of UST to restore its price, temporarily stabilizing the asset. However, when UST experienced its final collapse in May 2022, no similar intervention took place.

Terraform Labs, however, denied these claims, stating that Jump Crypto’s actions had no bearing on UST’s earlier recovery.

In April 2024, Terraform Labs reached a settlement with the SEC, agreeing to pay $4.47 billion after a jury found them liable for defrauding investors. The settlement included $420 million in civil fines, $3.6 billion in disgorgement, and $467 million in interest.

Although Jump Crypto was linked to UST’s earlier recovery efforts, it was neither charged nor formally implicated in any wrongdoing as part of the settlement.

By June 2024, Jump Crypto found itself under investigation by another U.S. regulatory body—the Commodity Futures Trading Commission. The CFTC launched a probe into Jump Crypto, reportedly scrutinizing its trading and investment activities within the crypto sector. Kanav Kariya, the firm’s former president, resigned just days later.

While the specifics of the investigation remain confidential, and no official allegations have been made, the probe reflects a broader push by U.S. regulators, including the CFTC, to intensify their enforcement actions against crypto firms throughout 2023 and 2024.

What to expect next?

If Fracture Labs succeeds in proving Jump Trading’s misconduct, it could trigger a major shift across the crypto industry, leading to tighter regulations and increased scrutiny of market makers.

However, this case is more than just one lawsuit. Governments, especially in the U.S. and Europe, are actively developing policies aimed at curbing market abuses. This case might provide regulators with the prime example they need to justify stricter oversight of market makers.

Additionally, token creators may start advocating for decentralized solutions or pushing for more restrictive contracts that limit the influence of market makers.

For the crypto industry to truly mature, this could be a crucial moment that compels everyone — projects, exchanges, and investors — to reevaluate how tokens are launched and managed, placing a greater emphasis on fairness and trust.

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Theo Crypto News

DeFi

Web3 wallets: The digital payment solution for the next billion users | Opinion

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The swift integration of digital payments has positioned web3 wallets as a central component of today’s financial ecosystem. In light of Thailand’s $13 billion digital wallet initiative, the question of how to build secure and scalable web3 wallets has become more urgent than ever. Are current web3 wallets truly ready for mass adoption, and what are the ways to address some of the most significant challenges in the space?

The expansion of wallet use cases

Web3 wallets, often regarded as gateways to the decentralized world, are evolving fast. Initially, their main use case revolved around storing and transferring cryptocurrencies. However, their utility now extends far beyond that. Non-custodial wallets are transforming the concept of ownership and control, empowering users to directly manage their digital assets, tokens, and even NFTs. They are becoming essential for DeFi, iGaming, and even governance voting within DAOs.

As these use cases expand, so does the adoption of web3 wallets. And Bitget Wallet’s rapid growth might be a good indicator of this trend. A significant factor in this growth has been Bitget Wallet’s web2 integrations, which boosted its monthly active users to 12 million, and tap-to-earn games, which have attracted a large audience by implementing wallet features directly into engaging mobile games. This has proven to be a major driver of adoption, particularly for regions where traditional finance is limited. 

Challenges to adoption

Along with the growth, web3 wallets face significant hurdles when it comes to mass adoption. One of the most prominent challenges is security. A CertiK report recently revealed over $1.84 billion in security incidents tied to wallet vulnerabilities. While offering enhanced control, non-custodial wallets also place the security burden directly on users. It presents a high-risk scenario, particularly for individuals who are not technically savvy.

Implementing keyless multi-party computation technology is one way to address these issues. The upgrade eliminates the storage of private keys on any device or server, reducing the risk of hacking significantly. MPC provides a robust security layer without sacrificing convenience, as it distributes the control of private keys across multiple parties.

Another feature to tackle security concerns head-on is a self-custody model. Users maintain full control over their private keys, ensuring they, not third parties, are responsible for their assets. This self-custody feature is critical in empowering users, as it reduces the reliance on intermediaries and centralized custodial services that are prone to hacking. Users can trust that their assets are fully under their control, enhancing both security and user confidence.

Additionally, the incorporation of established web2 platforms like Telegram for user onboarding displays an innovative strategy for bridging the gap between web2 and web3. This kind of integration lowers the entry barriers, making it easier for new users to transition into the world of DeFi with no need for a comprehensive understanding of the complexities behind blockchain technology.

While scaling quickly to meet growing demand, especially as digital payments gain traction globally, wallets must ensure that their security measures remain ironclad. The ease of use and security often exist in a trade-off. Wallets that emphasize user-friendliness may risk cutting corners in security. On the other hand, more secure wallets often require a level of technical expertise that can be a barrier to mainstream adoption. Striking a balance between these two factors is critical for the long-term success of web3 wallets. 

What comes next?

Looking forward, the future of web3 wallets will depend on their ability to continue evolving in line with the broader adoption of digital assets and payments. Web3 wallets will need to be both scalable and secure to meet the needs of a diverse, global audience. The path forward will likely involve further innovations in security, including the wider adoption of MPC technology, as well as efforts to make web3 wallets even more accessible to non-crypto natives. 

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Theo Crypto News

Công nghệ

GameFi investment is surging: Blockchain becomes a staple in every title | Opinion

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Web3 gaming has received a lot of skepticism over the past few years. However, the industry has undergone substantial changes in the developer’s approach to gameplay mechanics, reward models, and inclusivity factors. The result? We’re seeing GameFi emerge stronger than ever. 

It’s not just a theoretical observation but rather a statistical one. In the second quarter of 2024, blockchain gaming projects received a remarkable $1.1 billion investment—a 314% jump from the previous quarter. The positive investment sentiment is largely attributed to the growing adoption of web3 games, as they now account for 28% of all dApp activity.

So, it’s safe to say that GameFi is evolving. But what comes next? How does the industry maintain this momentum, and where is blockchain gaming headed on a global scale?

From web3 niche to industry standard

One thing is clear: Web3 gaming is no longer a fleeting trend. Blockchain technology has now cemented itself as an essential tool for the gaming industry, and the reasons are compelling. The most significant advantage that blockchain brings to the table is ownership. Players can now own in-game assets such as skins, characters, or items, creating real value that extends beyond a single title. Web2 games traditionally allowed players to make in-game purchases, but these assets remained tied to the game’s ecosystem, with no option for real ownership. Blockchain breaks this barrier by ensuring true asset ownership and secure transactions, allowing players to trade or sell items across multiple platforms.

Investors have taken notice. The massive capital injection we saw in Q2 2024 is just the start, and the strategic implications go beyond the numbers. Investors are now looking for games that offer long-term value—games where blockchain mechanics complement the gameplay, not overshadow it. This signals a new phase for GameFi, where the focus shifts from short-term speculative gains to creating sustainable ecosystems for both players and developers.

So, developers who ignore this shift risk falling behind. Those who embrace blockchain and web3 technology as part of their long-term strategies are more likely to survive in a market that is rapidly becoming blockchain-centric.

Removing the friction of web3 adoption

For blockchain gaming to achieve mainstream appeal, it must shed the complexity associated with web3 mechanics. One of the common critiques from gamers unfamiliar with web3 is that it introduces unnecessary complications. The integration of wallets, NFTs, and tokens can alienate players who simply want an entertaining experience. Games should be games first—whether they use blockchain or not. What sets blockchain gaming apart is that it adds layers of opportunity, not confusion, as long as developers focus on ease of use.

The solution lies in seamless integration. In successful blockchain games, the underlying technology becomes invisible to the player. They don’t need to understand the intricacies of NFTs or smart contracts. What they see is a game where they can trade, own, and invest in digital assets without any technical friction. Developers are increasingly focusing on making blockchain elements ‘background’ technology that improves player experience rather than becomes the experience itself. When this balance is struck, web3 gaming will see massive adoption from gamers who once dismissed it as overly complicated.

The future of GameFi: Long-term vision and strategic investment

As the market matures, the focus is moving from the play-to-earn business models and more to the competitive and efficient gaming environments. Many early P2E GameFi projects have already collapsed due to unrealistic tokenomics and shallow gameplay mechanics.

The lesson learned here is crucial: Games should not be built around profit motives alone. Fun and engaging gameplay must remain the priority, with blockchain providing opportunities for rewards and ownership as a secondary benefit.

We also learned to accept and adapt to this shift at Farcana, which initially launched as a P2E game but has now been rebranded as a “Bitcoin Shooter.” We have shifted focus to the competitive nature of the game first. Players earn Bitcoin (BTC) as a reward for mastering gameplay—not for simply logging in or participating. This model encourages true player investment and skill development, moving away from the short-term profit-seeking behaviors that characterized earlier GameFi projects.

Games that value experience and competitiveness will also resonate strongly with investors. Investors scrutinize the technology behind the games and the teams developing them. A key component to securing investment is showing that your game can stand the test of time. Building trust through transparent tokenomics and strong community engagement is essential.

Interoperability and cross-platform potential

Another promising direction for the GameFi business is interoperability, where assets are easily transmitted from one game, platform, or even a blockchain to the other. This cross-platform compatibility may change gaming at its core. E-sports leaders can also see a future where a sword attained in one game can be used in another or where a player can exchange in-game money in another game, creating an extra layer of the economy. This is exactly where blockchain technology is set up to advance the concept, and we are already witnessing the first attempts.

This will act as a major trend that will drive GameFi adoption around the world. Well, it’s no longer possible to provide games as stand-alone applications that work in isolation from other titles. People’s money should be protected and have a possibility of gaining value in other experiences, and the technology for this is already available. When web developers focus on ways to make games interoperable, they will be able to catch both the gamers and the investor’s attention and reveal completely new ways of monetizing.

Security and players’ trust

As GameFi continues to grow, security remains a critical concern. One of the biggest reasons why most web3 gaming projects failed after 2021 was the underlying security vulnerabilities. The decentralized nature of blockchain offers solutions to many of the traditional security problems that plague online gaming, such as fraud, hacking, and item theft. Blockchain’s immutable ledger ensures that assets are tied to players, not individual games, protecting player investments regardless of what happens to the game itself.

This ability to secure assets creates a trust-based ecosystem—a feature that will be crucial for mainstream adoption. Players need to feel confident that their in-game investments are safe, even if a game goes offline or a developer disbands. Blockchain’s security protocols, when implemented correctly, offer this peace of mind.

The road ahead

It’s evident now that, as an industry, we’re moving towards a future where web3 technology is a standard feature of most games. Mass adoption is inevitable, but it will require strategic investment, seamless integration, and a commitment to fun, accessible gameplay. 

New projects must understand that it isn’t just about earning a quick profit—it’s about creating immersive, engaging worlds where blockchain technology does not complicate the player experience. The key to unlocking this growth will be the industry’s ability to balance fun and accessibility while seamlessly integrating blockchain elements—an equilibrium that, once achieved, will usher in the next generation of gaming.

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Theo Crypto News

Công nghệ

Gaming blockchains dominate the industry, and their number will grow | Opinion

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Gaming remains a key driving force behind web3, accounting for nearly one-third of dApps’ daily active audience. Its evolution is fueled by market demand: as millions of users embrace GameFi, blockchain games struggle to handle the load—and build new solutions like game-oriented blockchains to meet growing needs. This further simplifies UX and user onboarding, which will inevitably attract a wave of new players—sparking further growth in the number and quality of gaming-first blockchain networks.

How the idea for gaming blockchains popped up

Blockchain gaming is growing at a record pace. In May 2024, the number of daily unique active wallets in the industry hit the three million mark, setting a new all-time high. Just two months later, GameFi’s dUAW reached a new ATH of four million. It is roughly one-third of the daily users in the entire dApp market, which amounts to 15 million.

It wasn’t always that way. In the early days of Ethereum (ETH), blockchain games were mainly a niche for geeks who were so enthusiastic that they were ready to put up with numerous inefficiencies and poor user experience. Developers realized the ecosystem couldn’t grow like this: constant congestion crises plagued GameFi, forcing users to wait hours for their transactions to be approved, sometimes paying tens of dollars in fees. It became apparent that gaming blockchains had to become more scalable.

Another issue with building games on Ethereum L1 was the lack of control over the development process and the inability to adapt the network to the games’ needs. This led game studios to the idea of creating dedicated and GameFi-oriented blockchains.

The gaming chain pioneers

One of the first blockchains built with scalability in mind was WAX. In 2017, it was initially conceived to make e-commerce transactions faster, but then gained a strong gaming focus: today, WAX closes the top ten gaming blockchains by daily active wallets with 132,000 dUAW and partners with Amazon Prime Gaming and Epic Games Store. 

Many GameFi-oriented L1 blockchains have appeared since then, but one of them stands out—Ronin. By 2020, Sky Mavis, a company known for creating the pioneering Axie Infinity game, shifted to building an L1 ecosystem rather than just a specific game title. The studio migrated its leading games, Axie Infinity and Pixels, to Ronin and focused on developing the network.

The team released Ronin’s testnet roughly two years before Ethereum’s Merge, when scaling plans for the industry’s largest dApp network were still vague. At the time, Ethereum was still leveraging the PoW consensus algorithm, so Ronin’s proof-of-authority and later delegated proof-of-stake were a breakthrough—they reduced energy consumption to near zero and introduced faster block times and transaction fees below $0.001.

Ronin’s efforts have paid off. Today, the ecosystem features 15 games and promises that more are coming. In June 2024, the number of daily active users on the network surpassed that of any other blockchain, including Tron and Solana, reaching the two million mark.

The launch of GameFi-oriented blockchains boosted the industry but didn’t solve all of its problems. Building a dedicated blockchain is time-consuming and expensive, and it doesn’t allow devs to quickly integrate all the innovations that pop up along the way. That’s why the industry players have turned their attention to Layer-2 and Layer-3 infrastructure.

Exploring the potential of new layers for gaming

Soon after Ronin was launched, Ethereum embarked on its journey toward scaling. Optimism, Arbitrum, and other L2s emerged, significantly reducing gas fees and increasing throughput in the Ethereum ecosystem. Some of these networks took steps to strengthen GameFi, adapting their infrastructure for game developers.

The next step in this evolution was the emergence of L3 networks—and this is where it gets really exciting. They cut the block time to 100-300 ms and achieved near-instant transaction finality, opening the way to processing thousands of transactions per second (compared to Ethereum L1’s 12-15 TPS). In addition to the drop in block time and transaction fees, the simplicity of deploying L3s and their customizability created unparalleled opportunities for game development within the Ethereum ecosystem.

Gaming-focused L3s leverage the recent web3 innovations to take the blockchain gaming experience to the next level. For example, PlayBlock, a GameFi L3 blockchain that runs on top of Arbitrum Orbit, uses account abstraction to remove multiple transaction approvals, ensuring uninterrupted gameplay. Relayer technology allows the network to sponsor users’ transactions, introducing a completely gasless experience for players. Self-custodial wallet based on the ERC-4337 standard eliminates the seed phrase and private key management hassle. 

Simply put, gamers on the newest L3s don’t need to manage their wallets, confirm multiple transactions, and pay gas fees. This removes all the complexities typically associated with blockchain gaming, making it accessible to millions of web2 natives who were previously put off by GameFi.

More gaming blockchains are to come 

L2/L3 chains are a priority for GameFi-oriented developers today as they ensure unprecedented scalability and customizability. Another perk is the speed of innovation they can afford: large networks like Ethereum can’t implement groundbreaking changes quickly, while smaller ecosystems have the flexibility to do so.

Corporations give another boost to the industry as some of them are tapping into gaming networks: Sony Group recently announced the launch of Soneium blockchain, an Ethereum Layer-2 focused on security and user-friendly gameplay. It’s quite possible that we will soon see similar blockchains from Ubisoft, Rockstar, or Epic Games, considering Ubisoft’s plans for web3.

Compared to L1 solutions, L2s and L3s require much less effort to launch. For instance, there are rollup-as-a-service solutions that allow for the quick launch of new customizable L3 networks. Thanks to the interest of major players and existing infrastructure, we are likely to see the birth of new gaming-focused blockchains soon, allowing GameFi to go mainstream.

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Theo Crypto News

Công nghệ

Blockchain gaming startup Oasys scores funds from SBI Holdings

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The latest deal in the blockchain space will mesh old-school finance with next-generation gaming.

SBI backs Oasys

SBI Holdings Inc., founded in 1999, is touted as one of the largest financial conglomerates in Japan. It specializes in traditional finance (aka tradfi), including asset management and venture capital.

Over the past few years, the firm started integrating blockchain technology into its services. It even developed its own cryptocurrency exchange called SBI VC Trade.

As of Aug. 29, a new segment is being added to its portfolio via a partnership with the Oasys blockchain network: gaming.

The Tokyo-based firm invested an undisclosed amount in Oasys, promising to enhance “synergies” with the game tokens on the blockchain.

“From its inception, [Oasys] has included several globally renowned major game development companies as initial validators,” SBI CEO Yoshitaka Kitao said in a blog post confirming the deal.

Earlier in the year, SBI and Oasys had partnered on an NFT initiative. But it’s worth noting that NFTs, or non-fungible tokens, are plummeting in value.

In contrast, Oasys shows more promise by making inroads with video game companies. After all, the Oasys network is affiliated with household names like Sega and Ubisoft.

In February, Oasys partnered with Com2uS to integrate several game franchises, including ‘Summoners War: Chronicle’ and ‘The Walking Dead: All Stars,’ onto its network.

Since 2021, Singapore-based Oasys raised about $20 million throughout three funding rounds.

In addition to SBI, Hyperithm — a Tokyo- and Seoul-based digital asset financial service provider backed by Coinbase, Samsung, Kakao and Hashed — also invested an undisclosed amount.

Tradfi’s new territory

This isn’t the first time SBI has expressed interest in digital tokens or blockchain technology.

In 2016, SBI created a new company called SBI Ripple Asia, which expanded the use of Ripple (XRP) products throughout China, Korea, Japan and Taiwan. It was also a part of the consortium that launched the R3 blockchain initiative.

And SBI is just one of several old-school finance firms dipping their toes in the burgeoning sector.

JPMorgan Chase remains committed to expanding its Onyx segment, hoping to further integrate blockchain into mainstream financial services. And BlackRock, along with Fidelity, began offering cryptocurrency exposure to clients, including Bitcoin ETFs and digital asset funds.

These moves reflect a broader trend of institutional adoption, driven by the bet that blockchain can enhance transparency, security, and efficiency in financial services.

SBI’s Oasys investment, however, is unique in that video games play a prominent role in the partnership.

According to Deloitte’s 2024 banking outlook report, blockchain-based and fiat currency-backed stablecoins are “entering the world of consumer payments.”

As tradfi continues to merge with the world of crypto and blockchain, the line between traditional and digital finance is becoming increasingly blurred, paving the way for a more interconnected and innovative financial system.

By investing in Oasys, SBI Holdings is seemingly looking to stay ahead of the curve.

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Theo Crypto News

Phân tích

APES goes parabolic, but harsh reversal may be near

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APES, a new gaming token on Solana, is firing on all cylinders, even as the sentiment in the crypto industry wanes.

APES (APES) rose to a record high of $0.042, significantly higher than its month-to-date low of $0.000050.

According to DEX Tools, its market cap jumped to over $33.8 million, while the number of holders increased to over 17,000. Most transactions on the network were bullish, with the number of buys exceeding 15,000.

APES, which was listed on Raydium (RAY) earlier this month, soared as it became the fourth-most popular asset on CoinMarketCap and the fourth most popular token in CoinGecko.

The token’s rise was further fueled by the developers’ announcement that they had secured listing deals with several tier-2 and tier-3 exchanges. Some of the exchanges that have listed APES include BingX, MEXC, and OKX.

However, their attempts to have the token listed on Bybit and Binance, two of the biggest exchanges have not worked out yet. 

APES is at the intersection of gaming and meme coins. Like popular tap-to-earn tokens such as Notcoin (NOT) and Hamster Kombat, users install the Telegram mini app and start accumulating falling bananas and completing simple tasks like following its social media pages.

These users can then convert these tokens into fiat currencies through exchanges. A key difference between APES and other Telegram mini apps is that the developers chose Solana (SOL) instead of rival blockchains. 

Solana has become a popular chain for meme coin and game developers because of its superior speeds, low transaction costs, and the popularity of its DEX networks like Raydium and Orca.

APES token faces capitulation risks

APES token chart | Source: TradingView

It is unclear whether the APES token has more upside after going parabolic in the past few days. In most cases, new tokens tend to rally after listing and then pull back as holders capitulate.

For example, Notcoin initially jumped by over 2,000% after listing and has now pared back most of those gains. Its market cap has moved from over $2.8 billion to $906 million. Similarly, Hamster Kombat’s pre-market futures have also dropped by over 80%. 

Therefore, there is a risk that the APES rally will fizzle out as its momentum wanes. If this happens, the token may drop to the psychological point at $0.016, its lowest swing on Aug. 29.

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Theo Crypto News