Algorand, the much-hyped project of Silvio Micali, a professor at MIT and a recipient of the Alan Turing Award, promised speed, security, and a new proof-of-stake mechanism.<\/p>\n
But since its native token, the ALGO, launched in June, it has dropped like a stone. The coin launched at a high price of $3.28, saw an initial sell-off in the first few days and then slumped over the long term down to just $0.20. Thats a drop of 94 percent. In the last 24 hours alone, ALGO fell 27 percent. So what happened?<\/p>\n
Well it largely seem to be bad timing. The crypto markets peaked in June, and then have been on a downhill slide since then. And the pain was exacerbated yesterday when the crypto markets took a sudden turn for the worse.<\/p>\n
Its possible that its fundraising method may have had a part to play too. Many cryptocurrencies raised all their funds via ICOs (whether legally or in violation of securities law) resulting in a bunch of people invested in the coin, talking about it on social media, in short, a community.<\/p>\n
Instead, Alogrand only raised half of its funds through an ICO that brought in $60 million after a previous funding round delivered $66 million. This may explain why there was very little grassroots movement around the ALGO, and an eerie silence on social media.<\/p>\n
Worse, not even an innovative real-world use case could save the day. Earlier this month, real estate platform Assetblock tokenized $60m worth of shares in its hotels on the Algorand blockchain. But the price has fallen 40 percent since then. Is there any hope left for the nascent coin?<\/p>\n
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\nAlgorand cryptocurrency lost 94% of its value in its first three months - Decrypt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"