Algorand is the worst-performing coin of the year, having dropped more than 90 percent since January 2019.
The company's token sales and ambitious decentralization goals drastically reduced the community's confidence in the project, as many criticized its overvalued market capitalization.
Algorand, a Boston-based blockchain company created to improve blockchain decentralization, has been making the news this year, partly for its ambitious token sales and partly for the widely contested inaccuracies published by the company.
The company raised over $60 million in a token sale on CoinList, in addition to the $66 million it raised in 2018 from major venture capital firms such as Union Square Ventures and Pillar Venture Capital.
It seems that the company has soared too high with its valuation, as the promising coin has become the absolute worst performer of the year.
Out of the top 200 coins by market capitalization, Algorand lost more than 90 percent of its value according to data from CoinCodex.
Algorand has been on the receiving end of a lot of criticism for the better part of the year.
The diminishing trust the crypto community had in Algorand was further reduced when it was uncovered that the company shared incorrect information in its promotional material.
The information shared on the company's website and Twitter account was later repeated by Steven Kokinos, Algorand's CEO, who added that they processed "2-3 months of Ethereum transactions" in 30 days.
Not even the company's buyback policy, which offers a 90 percent return on the coin within a year if the clearing price if above $1.00, managed to repair the damage done.
With a 90% YTD loss, Algorand is the worst performer of the year
Published on Dec 11, 2019
by Cryptoslate | Published on Coinage
Mentioned in this article
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.