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API3 (API3)
Overall score: 63/100
API3 (API3) Risk Report
Generated on 8/26/2025 | Updated Weekly | Last Updated: August 2025
What is API3?
API3 is a decentralized oracle platform that provides data feeds, known as dAPIs, directly from the source to decentralized applications without relying on third-party intermediaries. The platform ensures maximum security and transparency by keeping the data on the same chain as the consumer dApp, enhancing the reliability of DeFi services.
Risk Overview
API3 presents a balanced risk profile with notable strengths in its decentralized infrastructure and oracle capabilities. However, risks exist in areas such as security verification and holder concentration, which may affect long-term stability and investor confidence.
Risk Analysis Scores
Security
Moderate
Tokenomics
High Risk
Liquidity
High Risk
Community
High Risk
Development
Excellent
Security Score
What is Security?
Evaluates smart contract security, audit status, and potential vulnerabilities.
Why it matters
Security flaws can lead to total loss of funds through hacks, exploits, or rug pulls.
Key indicators we evaluate
The security review indicates a generally favorable outlook with some concerns regarding the full transparency of ownership and minting capabilities.
- Contract is verified, which indicates that the code has been reviewed and confirmed to be legitimate.
- Ownership status is unknown, which poses a risk as it is unclear who controls the contract and its updates.
- The ability to mint new tokens exists, potentially diluting value if mismanaged.
Liquidity Score
What is Liquidity?
Analyzes trading volume, market depth, and ease of buying/selling the token.
Why it matters
Poor liquidity can trap investors, prevent exits, and indicate market manipulation.
Key indicators we evaluate
Liquidity for API3 appears sufficient, supported by reasonable trading volume and multiple exchange listings.
- 24-hour trading volume stands at $1,894,459.86, which indicates active trading and interest.
- API3 is listed on 6 centralized exchanges, providing various avenues for purchase and liquidity.
- The liquidity depth on decentralized exchanges is rated as good, facilitating smoother trades.
Tokenomics Score
What is Tokenomics?
Reviews token distribution, supply mechanics, and economic incentives.
Why it matters
Poor tokenomics can lead to inflation, unfair distribution, and unsustainable price dynamics.
Key indicators we evaluate
The tokenomics reflect a high holder concentration and an unlimited supply mechanism, which may raise concerns about value stability.
- Total and circulating supply is approximately 1.51e+26 tokens, indicating a significant token volume.
- High holder concentration suggests that a small number of holders possess significant portions of the supply, increasing volatility risk.
- The lack of a burn mechanism may impact scarcity and long-term price appreciation.
Community Score
What is Community?
Assesses social media presence, engagement levels, and community growth metrics.
Why it matters
Strong communities drive adoption and price stability, while weak communities often indicate pump-and-dump schemes.
Key indicators we evaluate
The API3 community is moderately active, with a reasonable following on social media, but lacks extensive engagement metrics.
- Twitter followers stand at 71,408, indicating a solid social media presence.
- Telegram members total 6,598, showing some community engagement but lacking broader metrics like Discord participation.
- Community score is 58/100, indicating potential for growth and engagement improvement.
Development Score
What is Development?
Evaluates code activity, repository health, and ongoing project maintenance.
Why it matters
Active development indicates a committed team and project longevity, while abandoned projects often fail.
Key indicators we evaluate
Development activity is robust, with an open-source approach and a dedicated team of contributors, although recent activity metrics are lacking.
- The GitHub repository is active under the name api3dao/airnode, indicating ongoing development.
- There are 30 contributors, suggesting a collaborative effort in project development.
- The last commit was on August 25, 2025, which raises concerns about the current pace of development.
How We Score
Our scoring system evaluates tokens across five key categories, each weighted equally to provide a comprehensive risk assessment:
- Security (20%): Smart contract verification, ownership status, mint functions, and security vulnerabilities
- Tokenomics (20%): Supply mechanics, distribution, holder concentration, and inflationary/deflationary features
- Liquidity (20%): Trading volume, exchange listings, liquidity depth, and market accessibility
- Community (20%): Social media presence, engagement levels, and community growth metrics
- Development (20%): Code activity, repository health, contributor engagement, and project maintenance
How to Buy API3
Set up a cryptocurrency wallet
Download and install a compatible wallet like MetaMask, Trust Wallet, or Coinbase Wallet.
Purchase ETH or USDC
Buy Ethereum (ETH) or USDC from a centralized exchange like Coinbase, Binance, or Kraken.
Transfer to your wallet
Send your ETH or USDC from the exchange to your personal wallet address.
Connect to a DEX
Visit Uniswap, SushiSwap, or another decentralized exchange and connect your wallet.
Swap for API3
Enter the token contract address and swap your ETH/USDC for API3.
Frequently Asked Questions
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Important Disclaimer
This analysis is not financial advice and should not be considered as such. Cryptocurrency investments carry significant risks, including the potential for total loss of capital. Always conduct your own research and consult with qualified financial advisors before making investment decisions. Only invest what you can afford to lose and ensure you fully understand the risks involved.