Algorand is a terrible investment

• Algorand foundation gambled off ecosystem funds in a degenerate way just to earn extra money. See Hodlnaut.
• ALGO had one of the highest inflation rates of any well known coin. Nearly 96% annually from 2021 to 2022, meaning in one year the coin lost nearly half of its value by dilution, all things being equal
• Shit tokenomics. 100% premined with almost everything going to the foundation or ecosystem
  • 30% to investors, 25% to founders with the rest being in some ecosystem or participation fuckery
• Raised 122 million in funding which means it was going to be a VC dump from day 1.
• They are under their ICO price in 2019. LOL.
  • Additionally, their ICO was sketchy as fuck where people had the option to sell their holdings back to the Algorand foundation. Meaning the coin would just be shorted to shit back in 2019.
• ALGO has lost a significant number of its daily active users since the bear market began a year ago, dropping from over 1.3 million to just around 50,000. A staggering 96% drop. In the same time frame, Ethereum dropped just 14% (and that number doesn't include layer 2 protocols)
• ALGO was ranked 18th largest crypto by market cap at the beginning of the bear market 1 year ago. It is now 29th.
• ALGO's CEO left the company five months ago to move onto other projects. Do you know how fucked it is for a crypto project foundation with the level of power it has over the project to even have a CEO?
• ALGO has just 120 active validators which ALGO foundation chooses. Ethereum at 411,000. This is not great for decentralization.
  • No, I don't care about participation nodes. You still need relay nodes for consensus. You are only as strong as the weakest link.
• Currently Algorand TPS is at 7.75. See Algoexplorer for this number.
• ALGO "solved" scaling by doing a big no-no. It increased block sizes to solve scalability just as Bitcoin Cash did. From 1mb to 5mb. Tada! 5x performance boost! However this is not practical if ALGO transaction volume were to increase significantly with 100% full blocks. You're going to run into node propagation, scalability, and congestion issues if you're releasing 5MB blocks every 3 seconds. This is well known and seems like a quite amateur fix to the problem of scalability. Also much harder for normal people to run a node.
• Most of the transactions being done on Algorand are generated by a selected few "partners" (i.e. sponsored) projects such as planetwatch, chess. There is insufficient adoption on Algorand. Anyone can pay off someone given enough money and claim a partnership and shout "look at the adoption"
• "But Silvio Micali created this. It must be legit"
  • Yes and his partner who he won the Turing award with is now working on zk-rollups for Ethereum. The creator of Bittorent (one of the first P2P services) also made a scam crypto project just to enrich himself. It doesn't mean anything.

These "Alternate Ethereums" are becoming more and more irrelevant as time goes on especially given how Ethereum is upgrading and the inception of L2s. They are all cash grabs to get the insiders rich at the expense of you. They prey upon the inherent greed of people who believe they "missed out" on Ethereum, which is ironic considering you'd have more money just buying ETH than these projects. Sorry you got tricked, but better to learn the lesson now than continue to lose money. Given how centralized a project like Algorand is you are better off not using blockchain at all and just use an already existing solution. Don't invest in Algorand or other insider controlled shitcoins.

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