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All Smoke And Mirrors? Why The Aptos-Microsoft Deal Is A Reason To Short APT

Aptos (APT) has scored a major deal with tech giant Microsoft yesterday. However, the announcement of a “partnership” between Aptos Labs and tech giant Microsoft has raised eyebrows and ignited debates across the crypto community if this is just smoke and mirrors. With the APT token witnessing a surge of nearly 20% following the news, and a significant token unlock looming, the timing and nature of this partnership have come under scrutiny.

Aptos-Microsoft Deal Just A Click?

In the official press release, Aptos Labs revealed its plans to integrate Microsoft’s artificial intelligence (AI) technology. The collaboration aims to introduce a range of tools and services, including the Aptos Assistant chatbot, powered by Microsoft’s Azure OpenAI Service. The chatbot is designed to assist users with queries about the Aptos ecosystem and offer resources to developers crafting smart contracts and decentralized applications.

CEO Mo Shaikh commented on the convergence of AI and blockchain, stating, “Artificial intelligence and blockchain technologies are quickly converging for one important reason: They are both generational breakthroughs that profoundly impact the evolution of the internet and shape society.”

However, the partnership’s announcement has not been without its critics. Renowned crypto analyst @DefiSquared, known for being the top-ranked trader on Bybit, took to Twitter to express his skepticism. He pointed out, “lmao what. Did you guys really just pump Aptos 15% on the “news” that it’s paying to use Microsoft Azure services? Seems like an obvious short on a chain that yes, still has no users and an $8 bil valuation with an infinite token supply and 100% annual emissions.”

@DefiSquared further highlighted the timing of the news, just two days (on Friday) before more than 4.5 million APT tokens (2% of the circulating supply) will be unlocked, suggesting potential ulterior motives. He also shared a screenshot from Microsoft’s website, indicating the ease with which entities can join the Microsoft AI Cloud partner program, sarcastically remarking, “Aptos really clicked ‘Enroll at no cost and become a partner today’ and added a billion dollars to their market cap. Who knew it was that easy?”

While the partnership promises to explore blockchain-based financial services, including asset tokenization and central bank digital currencies, the specifics remain vague. Aptos’ representative emphasized the collaborative nature of the partnership, stating, “This is a collaboration from day one. Aptos Labs’ team of AI experts, Ph.Ds, and Web3 developers are working directly with Microsoft’s AI team to train models, integrate AI technology into the Aptos Assistant and GitHub elements integrating with Aptos’ blockchain.”

APT Price Analysis

As the crypto community continues to dissect the nuances of this partnership, the question remains: Is this a genuine stride forward for Aptos, or a well-timed PR move to buoy token prices ahead of a significant unlock for venture capitalists (VCs)? Only time will tell.

At press time, the APT price stood at $7.27. Thus, APT failed to post a higher high. The price has already bounced downwards off the resistance at $7.98 and also ahead of the 200-day EMA as well as the 23.6% Fibonacci retracement level.

Aptos APT price

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Aptos Labs’ Collaboration With Microsoft Sends APT Soaring By 17%

Aptos Labs and Microsoft have announced a strategic partnership to showcase the convergence of artificial intelligence (A.I.) and blockchain technologies. 

Aptos Labs, a leading blockchain developer, and Microsoft, a key backer of A.I. advancements through OpenAI, are joining forces to create the innovative Aptos Assistant, a ChatGPT-powered chatbot designed to provide users and developers with comprehensive information and analysis of the Aptos ecosystem.

Aptos Labs And Microsoft Forge Alliances For Blockchain Development

According to a report by Yahoo Finance, unlike previous endeavors in the crypto-related A.I. space, which primarily revolved around licensing OpenAI’s ChatGPT, Aptos Labs’ collaboration with Microsoft ventures beyond boundaries. 

The partnership encompasses various facets, with Aptos Labs hosting validator nodes on Microsoft’s Azure cloud computing platform, integrating its programming language, Move, into Microsoft’s popular coding platform, GitHub Copilot, and exploring opportunities to connect with major financial institutions seeking to build blockchain-powered applications on Azure.

Rashmi Misra, General Manager of A.I. and Emerging Technologies at Microsoft, expressed excitement about the fusion of A.I. and blockchain, stating: 

The intersection of A.I. and blockchain is among the most interesting combinations of emerging technologies. By fusing Aptos Labs’ technology with the Microsoft Azure OpenAI Service capabilities, we aim to democratize the use of blockchain.

Aptos Labs has already secured substantial funding of $400 million from investors, according to Crunchbase, highlighting the confidence in their technological prowess. The collaboration with Microsoft further solidifies its position as a formidable player in the blockchain space.

While A.I. startups have dominated funding in 2023, raising nearly $25 billion, compared to around $3.6 billion for crypto ventures, Mo Shaikh, Co-founder and CEO of Aptos Labs, believes that A.I. and blockchain are not mutually exclusive. 

Shaikh emphasizes the importance of blockchain’s ability to provide verified and accurate information, minimizing the risk of A.I. models generating false statements or hallucinations.

The practical implications of this collaboration are still unfolding. Still, Shaikh underscores elements such as the A.I. assistant and integration into Github Copilot to represent a larger vision of deep integration and co-development between Aptos Labs and Microsoft. 

APT Rebounds As Collaboration With Microsoft Reignites Investor Interest

APT, the native token of the Aptos blockchain, experienced a significant surge of over 17% following the announcement of its partnership with Microsoft. 

This surge marked a crucial turning point after a prolonged downtrend that persisted since the beginning of February. Notably, APT had reached an all-time high of $20 before succumbing to the downward trend.

The decline in APT’s price can be attributed to an unlock event on February 12th, where Aptos released 4.5 million APT tokens. 

The unlock event, involving the release of a significant number of tokens, resulted in increased selling pressure, leading to a continuous decline in APT’s price. 

However, the recent partnership announcement with Microsoft has injected new life into the token’s value, reigniting investor interest and resulting in a remarkable price surge. 

Despite experiencing some retracement, APT still holds a 10% profit since the disclosure of the partnership with Microsoft. It is currently trading at $7.3340, representing a 63% decrease from its all-time high reached in January 2023.

Aptos

Overall, investors have responded positively to this news, recognizing the potential of the Aptos-Microsoft partnership to drive innovation and expand the reach of the Aptos blockchain. The substantial surge in APT’s price reflects growing confidence in the project’s prospects and underscores the significance of this collaboration.

Featured image from iStock, chart from TradingView.com