Cancel the Dutch auction, the right to withdraw the currency is not fixed, Algorand sit on the real high IQ harvest rumors?

Algorand, the investor's eagerly awaited, finally came up with new news.

On July 31, Algorand issued an official announcement saying that “(the introduction of new Algo to the market) will not be subject to a specific timetable”, “EAC does not recommend any other sales in the third quarter of 2019”, “Retire The policy may be adjusted in future auctions."

In other words, Algorand originally scheduled a Dutch auction twice a month, officially announced a miscarriage, in addition, the subsequent 90% refund regulations may change.

When the new news came out, it immediately attracted people to question:

“What is the concept of a refund policy adjustment?”

"If the price is high, then come out to auction, the official is too greedy, and change the rules at will."

"This project has technology and money, that is, there is no festival."

"Is there a guarantee for the 90% refund right?"… Similar doubts and crusades, madly flocking to Algorand, investors who originally thought of relying on the second-stage auction to recover losses, ultimately hoped to fail.

For the investors who successfully participated in the first Dutch shoot, although the time has passed for a month and a half, but the previous investment is a loss, the vote is cut, the shadow of no escape, still haunts, has not completely dissipated.

In just two months, ALGO fell from $2.40 to $0.56. This disappointing performance is completely out of everyone's expectations, and many investors who participated in the first auction of Algorand are not seeing signs of blood return. At the time, they have already left with disappointment.

Nowadays, it is still unclear whether the news of the abortion in the Netherlands and the 90% of the right to return the currency can be fulfilled. Is it true that the star project Algorand is really rumored to be a real high IQ to harvest retail investors? Or is it a new one?

Official announcement of late arrival

On the last day of July, investors who had fantasies about Algorand finally ushered in a head start.

At 1:30 this afternoon, Algorand officially released the latest article "Promoting the Economic Balance of the Algorand Ecosystem | Recent Experience Summary Report | Publicity", which highlighted three key messages: cancel the original two auctions once a month; The Netherlands will be filmed again; the refund policy may be adjusted.

“We will consider the market dynamics and ecosystem needs to introduce new Algo to the market, rather than simply conducting regular auctions until the supply is exhausted. Therefore, it will not be subject to specific timelines.

The EAC Advisory Committee regularly updates comments on whether additional passes are needed in the near future.

EAC does not recommend any other sales in the third quarter of 2019.

The refund policy may be adjusted in future auctions. According to the official statement, this is a recent experience of the Algorand team. After nearly two months of market baptism, the new financing game confirmed the invalidation: “The auction price includes the value of the certificate and the value of the refund policy. This factor may make Finding prices is more difficult and may increase market pressures and volatility. We will try to correct this in subsequent auctions to reduce the negative outcomes of price discovery Price Discovery and market dynamics."

According to Algorand's previous plan, the project will conduct two auctions each month, releasing 25 million tokens each time. If the normal process is followed, the new phase should be opened around July 5, and the second auction time is not only delayed. Undecided, it was finally cancelled.

The public notice also mentioned that part of the reason for the serious decline in the ALGO secondary market came from the selling pressure of the initial node operators.

“All node operators receive an average of 3.2 million rewards per day. More than 50% of Algos acquired by node operators are kept online by their nodes and participate in consensus agreements.

All node operators receive an average of 3.2 million rewards per day. More than 50% of Algos acquired by node operators are kept online by their nodes and participate in consensus agreements.

It should be noted that Money online and support network vitality is an important part of the Algorand protocol. However, some of the certificates obtained by the node operators have indeed increased the selling pressure in the secondary market. To this end, the Algorand Foundation's solution is: “We are considering giving higher incentives to participants who are willing to lock tokens at different times and encourage them to increase the amount of tokens held by long-term Stake.”

In addition, the announcement re-emphasizes the issue of the 250 million Algos funds retained by the Algorand Foundation and Algorand, Inc.

Have a warning?

For today's publicity results, Li Ran (a pseudonym), which has been paying attention to the progress of the Algorand project, is not unexpected.

In his view, the original two-stage auction time was delayed, and it was delayed. "It must be suspended."

Li Ran told 31QU that he had participated in an offline activity at Algorand earlier this year at Tsinghua University, but there were not many people at the scene, "most of them are students." He added that the effect of the whole event was not satisfactory. "The first quarter of the time is the student blockchain association in PR. The speech of the chief scientist of Algorand is not only difficult to understand, but also very impatient when faced with doubts. ""

In addition, the Algorand Operations Director, who was scheduled to attend the Staking Eco-Conference on the 10th of this month and arranged a keynote speech, did not make it.

In response, there is a saying that "the team is preparing for the second auction, and is about to pull the momentum, worrying about the user's suspicion, the team will pull out when it comes out, and finally cancel the trip."

In fact, as early as the first auction of Algorand, the performance of the tokens has plummeted, the Algorand community has complained that for the second phase of the Dutch auction, the investors in the group were not as crazy as before. From the evaluation point of view, most of them are full of pessimism. mood:

“It’s going to be cool when you first enter the market.” “ALGO is really disappointing, one day at a low price.” “If you don’t pull the price up, the project’s two auctions per month will be gone.” “If the second auction Still can't stop loss, then fall, then the coin is directly abolished."…

However, unlike the generally pessimistic attitude of retail investors, Li Xi (pseudonym), the head of the agency that participated in the project private round before the shoot, told 31QU that in the long run, the current price of one dollar does not represent the price of Algorand. Judging that "the price of the second bid will be higher than the market price."

At a price of $0.05 for private placement, after taking a high price of $2.40, the institutions that participated in the private placements were rewarded with a full 48 times.

Li Xi told 31QU that the income from Algorand was really good, but the outsiders’ hot-selling “selling on the line, the institutions earned a lot of money” and “so-so-so-so” were not accurate because they didn’t get all of them at once. Unlocked tokens, "The official has long set the rules for daily linear release, and it is impossible for large-scale selling of institutions."

The first period of high prices and several major exchanges and the good news on the line ALGO, boosted the supporters' fanaticism.


▲ Algorand price trend after the token is online

But the good times didn't last long. Just three days later, ALGO was like a flood of flooding, all the way down. On July 31, the price has fallen below $0.6 and temporarily reported $0.56.

Wallet, exchange entrance

The pessimistic sentiment contrasts sharply with the spur of Algorand's first auction.

In fact, as the first blockchain project to sell tokens using Dutch auctions, Algorand's participation threshold is not low.

It is understood that the first auction does not support the Chinese. If the Chinese want to participate in the auction, they can only buy foreign KYC accounts. In addition, for investors who do not understand the Dutch auction, they may be costed because they do not know how to bid. High, or can't shoot.


It is precisely because of various problems that this Algorand financing has emerged from an alternative “generational investment”.

“In fact, we opened the Algorand investment channel, and because the users asked more, we took this idea into consideration.”

Tiger Charity Wallet COO Deng Chaohua told 31QU that after deciding to open the channel for participation, the team estimated the number and expectations of users' participation based on experience and finally decided to open 300 bitcoin shares.

The enthusiasm of the users is beyond the expectations of the team.

“Our activities were officially opened on June 15 and completed in just 2 hours.” Deng Chaohua said that the event attracted more than 300 participants, with an average participation of 0.9 bitcoins. Part of the old users, the number of participants is similar to our expectations."

The whole process, from the opening of the activity to the completion of the token distribution, to the open withdrawal, "time is still very tight." He told 31QU, "because most users want to sell immediately after the launch, or move bricks and arbitrage. Therefore, users I will be very concerned about whether the wallet can be opened for the first time."

It is understood that not only Hufu, such as wallets and exchanges, including Cobo and CoinPark, have opened channels for investment and each has its own characteristics.

Among them, CoinPark adopts the form of equivalent ALGO token reward by using platform coin to be mined according to the anchor value; Hu Fu also puts on a token that binds ALGO one year after the withdrawal of currency rights – TALGO, participates in the platform The user makes the right, "similar to European put options."

“From the perspective of user transaction motives, those who are more interested in TALGO are those who have participated in the private placement of the project in the early stage, buy the right to withdraw the currency, and lock in the proceeds.”

Deng Chaohua believes that regardless of whether the user finally exercises power, it should depend on the user. "A lot of participants who refer to the exchange sell the currency, the right to withdraw the currency is basically nowhere to be found, one year later, the exchange It also does not tell users who hold ALGO which currencies have the right to withdraw coins.” He believes, “This is actually unfair to users.”

“The Dutch shoot can raise more money for the project, but in essence, this game of the price of the token is more like a financial game. It is not a good thing for the blockchain project that emphasizes the power of the community. ”

In fact, "whether it is a cryptocurrency fund or an original proxy investment, everyone is doing business with poor information." He told 31QU that the wallet did not charge an intermediary fee, but it was also considered a "disguised proxy." However, in the future, "the chances of other wallets emulating should not be too great."

a gorgeous harvest

In fact, since the launch of the project, Algorand has gathered the attention of everyone.

The Gödel Award, the RSA Award, the Turing Award winner, and the American Massachusetts Institute of Technology professor Silvio Micali proposed that many heavyweight experts participated in the groundbreaking solution to the "impossible triangle" problem… many heavyweight titles are constantly rising. People's expectations for Algorand tokens.

However, the dazzling "born" did not allow ALGO to maintain its long-lasting brilliance.

On June 19th, Algorand's main network was on the line, and the Dutch auction in the evening ended in just 3 hours and 37 minutes. Finally, 25 million pieces of ALGO were sold at a price of 2.4 US dollars, and a total of 60.4 million US dollars was sold. If you follow this price, the total market value of tokens will hit the top 8 in the world.

However, even if a number of first-line exchanges tacitly agreed to the good situation of ALGO, it did not last long. Three days later, ALGO took the road of three consecutive days on the daily line: on June 22, it began to plummet 26.96%, on the 23rd it fell 9.78%, and on the 24th it fell again 21.88%. On the 25th, the price once fell to 1.31 US dollars, from the highest point At the lowest point, the decline reached 60%…

The plunge has led to overwhelming controversy.

In the Algorand investment community, there began to be comments such as "The Turing Awards are cut faster and more sturdy", "IQ is hard", "Open 48 times, don't fall too bad", and even "have the opportunity to see 1" The pessimistic tone of the following dollar.

To make matters worse, on June 28th, the Beijing Mujin Association once again issued a risk warning about investing in the virtual currency market. Algorand is listed: some institutions “use Algorand projects, DVS coins, etc… to continue illegal cross-border financial activities.”

The bleak performance of the currency price and the embarrassment of the users, step by step pushing this star project into the abyss of public opinion.

Previously, this blockchain project, which was participated by the Turing Award winners, was taken up by many investors. Today, “Turing” has been spoofed as “slaughter zero”, even in the face of market and capital, even the Turing Award. It also became worthless.

For ordinary investors, countless lessons of blood and tears have already become a rumor:

There is a risk in the currency circle, and it is necessary to be cautious when entering the market; it is confusing by some high-level packaging words. When the project side raises the sickle of harvesting, it does not take into account the face. Text / 31QU Ganoderma Lucidum