Posts about Algorand
Many of us invested in Algorand. I also bought some. In 2020/2021, the entire subreddit was insanely bullish on Algorand. It was also mentioned all over social media and on many news websites.
But to say that Algorand has been a terrible performer would be an understatement. Some facts:
Algo is almost 96% down from the November 2021 high
Algo is down over 96% from all time high June 2019
Algo is down about 99% against Bitcoin since June 2019 and keeps making new lows
Algo is down 97% against Ethereum since January 2020 and keeps making new lows
Algo is the second worst performing top 50 altcoin in the past 90 days. Bitcoin is up 28.5%, while Algo is down 34.2%.
So what can we learn from this to ensure that we do not repeat the same mistakes?
I'll share mine and then am looking forward to yours.
I will never again buy a cryptocurrency with poor tokenomics. Algo had over 500% inflation in 2021 while the staking rewards were nowhere near that. That is SO MUCH extra selling pressure. I now refuse to buy a project where staking does not cover inflation.
I will avoid cryptocurrencies that go for expensive yet meaningless partnerships. Algo got a Fifa World Cup partnership that was worth nothing. FTX and CDC did something similar by getting naming rights on stadiums (Miami Heat Basketball Team, Staples Center). This is paid for with users' money. So essentially current investors are the cash cow to draw in more idiots.
I will avoid projects that are heavily shilled here. Algo, LRC, ONE, LUNA, CRO, VET, CKB, Neo, and the list goes on. The inverse r/CryptoCurrency graveyard is heavily populated.* Quite a lot of this shilling was not natural.
*... but now everyone is bearish on Algo. What if it inverses to the bull side? 😂
Algorand just took another fall off the cliff with the rest of the crypto market, and broke it's all time low. The prior All Time Low was, $.1029 which occured during the March 13th 2020 Covid Crypto Crash.
https://finance.yahoo.com/quote/ALGO-USD/history?period1=1580515200&period2=1588809600&interval=1d&filter=history&frequency=1d&includeAdjustedClose=trueIn March 2020, the Algorand Circulating Supply was around ~700K. With a current circulating supply of over 7.2B, the supply has increased over 10X as the price has currently reached a new All Time Low. As every holder in Algorand is now at a loss.
Anyone thinking that Algorand has another 20x bull market up it's sleeve, should know a crypto with a supply that has increased over 10X is going to be harder to make big moves up. As the increase in supply will make it more difficult to have upwards momentum during a bull market.
https://i.redd.it/4hjgr3m1e45b1.pngTaking a look at what other crypto assets were doing on the March 13th 2020 Covid Crypto Crash.
BTC dropped to a low around: ~$4k
ETH dropped to a low around: ~$97
ADA dropped to a low around: ~$.02
Algo was at a low of around ~$.102
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https://i.redd.it/h1gzliqjf45b1.pngAlgorand now has a new low of ~$.0958 as all Algo holders are now underwater.
Algorand was one of the most hyped projects here during the 2020/2021 bull market. It had an amazing rise from $0.096 in May 2020 to about $3 in November 2021. We were all like:
https://i.redd.it/t1ddsrjeyt1b1.pngSince then, however, Algorand has rolled over and performed much worse than most other alts. Let me summarize:
(1) Algorand just set a new bear market low
The price right now is $0.1548. This is 95% down from the November 2021 high and a price we have not seen since March 2020. A lot of other alts have not continued to make new lows but Algorand is one of the few projects that has done so. Other alts are also down a lot less.
https://i.redd.it/m81nanj7ut1b1.png(2) Algorand is the second worst performing asset over the past 90 days
While Bitcoin is up 8.8% in 90 days, Algorand is down 42.5%. Only Filecoin has performed worse over a 90 day period, but Filecoin is a terrible project with almost 100% inflation every year and it was marked as a security by the SEC.
Algo is second from the right...(3) Algorand/Bitcoin keeps making new lows
Algorand is 98% down relative to Bitcoin since its highest point. 98%! And 90% relative to the November 2021 peak. Its just nonstop bleeding.
https://i.redd.it/cxnyr0lvut1b1.png(4) The market cap just made a new bear market low
Even the market cap of Algo also just set a new bear market low. So even if you factor in the inflation of the token since all time high, the project is bleeding money.
https://i.redd.it/a1r0z9kuvt1b1.pngSo....
What is wrong with Algorand? Why is it performing this bad relative to other alts?
What does the future of Algorand hold? Is this a good moment to buy then and why (not)?
Perhaps, given that everyone here is bearish on Algo now, it is time for it to pump and inverse us?
Algorand has had a particularly hard bear market. First mass inflation lowered the relative value of all other Algo in circulation, the Algo Foundation selling on holders to promote "marketing", leadership changes within Algorand, and tons of controversy within the Foundation itself. Then concerns about being labelled a security by the SEC. With everything that has happened, Algorand just hit a new bear market low at $.1595. The prior low was $.1607 which occurred during the fall out of the FTX collapse.
https://i.redd.it/ghx3e2k6o8za1.pngWhile many Crypto assets like BTC +72%, ETH +55%, ADA +45% have made gains since then the FTX Collapse, Algorand just found a new bottom.
If Algo is destined to slowly bleed out, or if it can reach a new ATH in the next bull is up for debate. For now Algorand is continuing it's drop into apparent irrelevancy.
Now I’m not one for conspiracy theories, but this is 4.3% of the total max supply of Algo, all accumulated this year.
https://twitter.com/Algofan1/status/1666118403898343426?s=20
We’re at or near the bottom, nearly at an all time low. We’ve spent the bear market building, state proofs, faster finality, 6000 true tps, Algo kit UX, one click nodes and London Bridge to ETH nearly complete…. We shouldn’t really see these prices. It’s the best tech out there.
It feels like a concerted effort has been made to push this coin low. SEC obviously making spurious claims which will never see court, the mysterious myAlgo hack that nobody can see a reason for.
I think some powerful people are up to something on Algo. I think we turn a corner soon and we turn it in a big way. Probably when xrp wins its case and secondary sales are deemed to not be securities- Algo will have every right to ask to be removed from the cases in Binance and bittrex- as I’m sure the plaintiffs will…
I’m buying more.