Posts about Algorand
A lot of us invested in Algorand. I also bought some a few years ago. Back in those days, all of us were very bullish and positive. Algorand was all over Reddit and other social media websites and news websites. Algorand got some strong partners over the years.
https://i.redd.it/2j2wixee8jbb1.pngFast forward to 2023, and Algorand is a little under $0.11. Yet it used to trade at $3.15 in 2019 and $2.30 in 2021. Relative to Bitcoin, Algorand is even down 99% since 2019.
Actually, from the start of 2023:
| Cryptocurrency | Price 1 January 2023 | Price 12 July 2023 | % difference |
|---|---|---|---|
| Bitcoin | $16625 | $30742 | +85% |
| Ethereum | $1201 | $1886 | +57% |
| Algorand | $0,1775 | $0.1062 | -40% |
So while Bitcoin is up 85% and Ethereum up 57%, Algorand is down 40%. This means that $1000 invested in these three cryptocurrencies would give you $1850 (Bitcoin), $1570 (Ethereum), or $600 (Algorand). That is an INSANE difference.
For perspective, XRP is 40% up, Litecoin 36% up, Polkadot 18% up, ADA 16% up, and Solana 120% up. Almost every other alt is outperforming Algorand since the start of the year.
What happened? Where did this go wrong? Cant believe how bad Algorand is performing.
It shouldn't come as a surprise that Crypto Specific Subs - are served with an insane amount of Copium. When anything bad happens with the crypto you can check the Sub and find the latest spin for why "it is actually a good thing" and why the token is going to inevitably Moon.
Being a previous sub favorite and one of the most shilled Cryptos on this sub in 2021, everyone here is probably more familiar with the 46th Ranked Crypto, 'Algorand' - than higher ranked cryptos like: Stacks, Aave, FileCoin, or OKB. As a result, it shouldn't be surprising that Algorand gets an unequal amount of attention over it's horrendous bear market performance.
https://i.redd.it/lj2oqp6k7ebb1.pngEven today Algorand continues to drop and is currently the worst performing crypto over the last 7 days out of any crypto in the top 100 by Marketcap.
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For the past year, whenever I see anything bad happen to Algorand I check the Algorand Sub and often see the same rehashed lines
"Algorand is the easiest to use L1 and has the best tech this bear market doesn't matter"
or
"Now is the time to buy Algorand, Development is only getting easier"
When people call out Algorand for it's obvious flaws, like the Centralization of ALGO and the Foundation constantly dumping on retail. You see things on the Algo sub like:
"The more the Foundations dump now, the less they can dump later. This is going to become bullish in a bull market."
As a spectator it's easy to believe these lines, especially coming from people who are so confident that their crypto of choice will recover.
https://i.redd.it/2mo56sq7ydbb1.pngDespite that - Algorand has just continued to fall during this bear market and currently shows no signs that it might recover. Especially now that the biggest ALGO DEX is closing shop.
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It's true, the CryptoCurrency sub does have a horrendous record and will often shill pumping projects only to make the new buyers - bag holders. But for all of its flaws, this sub does have users that really know the Pros/Cons of different Crypto projects, and aren't just going to repeat the same lines of raw and unfiltered Copium that you'd find in a Crypto Specific Sub like Algorand
Don't look for investment guidance in a Crypto Specific Sub - If you do, you'll likely end up DCA'ing into a endlessly dumping project based off an insane amount of unfiltered copium from the existing (bag)holders.
Like many other altcoins Algo has taken a beating in the bear market. Algofi now shuts down even though they got over 2M in funding in 2021 from venture capitalists including Coinbase ventures.
the team believes that going forward we are no longer able to provide the support necessary to maintain the protocol at the high standards which we believe the community deserves. We will begin sunsetting the platform and put the platform in withdrawal-only mode.
Is this the straw that breaks the camel's back? Or is the camel already broken?(down 90% from all time high)
The details can be found in their blog post - https://blog.algofi.org/algofi-community-update-3cc989962d57?gi=9f39b97cc651
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 ~700M. 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 Foundation has to be one of the worst run I’ve seen. I can’t even begin to understand why they do these unless they’re purposely trying to lose the money and dumping to friends/family/business partners.
They trusted and did deals with Three Arrows Capitol. Anyone in crypto knows not to deal with 3AC, something to the tune of 50 million US and tanking the price of Algo
Algorand Foundation lost another 35 million trying to yield a bit on a really unknown platform Hodlnaut
https://cointelegraph.com/news/algorand-foundation-outlines-35m-exposure-to-crypto-lender-hodlnaut
That’s almost 90 million they threw away or gave to friends, on some crazy risk. If you lose on a business end to something unforeseen maybe that is sensible. But would anyone trust 3AC with $20 much less tens of millions? Would anyone hold 35 million on Holdnaut an exchange no one has heard of, unless their friend, family, partner made them some kind of deal?
I didn’t read too much on their new deal but damn you can’t make such bad decisions unless there’s something else going behind closed doors. That or this foundation is incompetent.
Gary Gensler, the chairman of the SEC, promoted Algorand in one of his speeches at MIT on April 2019. He said:
https://i.redd.it/rq63u02st06b1.pngGovernance is tough. You could create uber or lift on top of a blockchain technology today - well, maybe in 5 years you could, it would have the performance. Silvio Micali's Algorand, who is a turing award winner at MIT that I work with. Silvio has got a great technology that you can create uber on top of it".
There's likely more of these comments.
Now, Gary Gensler said that Binance US sells unregistered securities, including Algorand. So Gary Gensler said positive things about a security to a large crowd, a security owned by his former coworker that he worked with.
https://i.redd.it/5y9u9ltnu06b1.pngJeremy Hogan -the attorney famous for covering the SEC vs. Ripple case- quoted the law that was used to sue Kim Kardashian over the EthereumMax scam. This law is very relevant here:
https://i.redd.it/b8tbre4yv06b1.pngSo if Gensler was paid directly OR indirectly for this speech by a relevant party, he would definitely be able to get sued for shilling a security.
It would be poetic justice if he shot himself in the foot here and gets a taste of his own medicine.