Analyst criticizes ApeCoin for governance structure

A market analyst under the pseudonym Kobi has harshly criticized ApeCoin. His claims were related to the control system (DAO). The expert spoke in detail about the early participants in the project, stating that they have a disproportionate amount of influence in the organization.

In his opinion, this threatens the decentralization of the startup and may adversely affect the cost of APE. According to the specialist, the proposed structure of the board of directors is also not suitable for resolving certain issues.

Kobi noted that board members who have the most weight in voting and decision-making on the development of the project can play a negative role in its evolution. This is due to the fact that these people can pursue their own selfish goals, and not strive for general progress. Kobe assured: 140 million APE (about $2 billion) allocated to early launch participants. In total, they will have more than 33% by the time of the staking program. This will give them a significant advantage when participating in this initiative.

Koby suggested that this state of affairs could be a potentially hostile incentive, and board members would negatively influence many processes within the project, which could lead to the depreciation of the virtual asset. This state of affairs will be a disaster for tens of thousands of other investors.

According to the analyst, the term “staking” has taken on a different meaning in this startup. Rather than rewarding contributions to the security of the network, this process will now simply enrich those who hold more tokens.

Earlier edition informed: according to experts, the number of holders of ApeCoin exceeded 40 thousand. This happened less than 2 weeks after the release of the digital currency. On average, about 1.7 thousand new users per day purchased the APE token in the first 14 days after it was released to the auction.

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