Unconsciously, the public chain in the market has been a lot of glory, and the trend has become a more and more experienced project team members, academic scholars are more and more, and there are still many "Turing Award" level, and claim to be self-proclaimed Algorand, the king of the public chain, is one of the most eye-catching ones.
The performance of Algorand falling from the sky to the ground gave us a warning signal.
Let us first review the situation of Algorand:
- Algorand 2.0 released, providing standardized asset creation, atomic transfer and smart contracts in Layer 1.
- Third-party code auditing and testing of Algorand test network: mature system and good anti-attack
- Raised $60 million in 4 hours, valuation approaching Ethereum, Algorand into the rookie
- The quilt cover for 40 days, the Algorand photographed by investors can finally be solved in advance.
- The auction was suspended. How did Algorand’s 200 million mortgage reward scheme be launched?
- Roller coaster market, Algorand really played a "funds disk"?
- In February 2018, Algorand raised $4 million in funding;
- On October 25, 2018, Algorand announced that it had raised $62 million in funding, and the cost of participating in an investment institution was $0.05.
- On June 21, 2019, Algorand raised $60 million in the first Dutch auction and the cost of a single currency reached $2.40, which brought the overall estimate of the project to $24 billion, close to the Ethereum.
- On the same day, the first-line exchanges such as Firecoin, OKEx, and Coin Security went online at almost the same time, and the market sentiment reached its peak.
Since then, Algorand's performance is this:
Typical opening curve
Just yesterday, Algorand announced that he had changed the token release rules and encountered a lot of trouble.
What kind of reason is that Aragon, which promised to "guarantee 90% repurchase after one year", has fallen into "two dogs" all the way?
In fact, there is no special reason for this. The fact is that the market’s expectations for the “two dogs” are too high. The valuation of the highest $24 billion is like an aerial loft. Therefore, the nodes participating in the private placement receive the coins every day. One thing is that the "two dogs" coins of a large amount of 0.05 US dollars or even lower cost are continuously flowing to the secondary market, and the current trend is a process of returning to rational valuation. As for the reasonable valuation, this is how much It is the problem that the benevolent sees the wise and sees wisdom.
In other words, the biggest problem for the Algorand project is that the valuation of its own project is too high, as evidenced by the rules for reducing the repurchase ratio below $1.
How was Bitcoin and Ethereum born in grassroots successful?
Compared with the high-profile of Algorand, the birth of Bitcoin and Ethereum is much lower-key. Nakamoto is originally a person who does not know it. It has no financing, and there is no honor of "Turinging Award". After your own white paper, personally write project code and interact with people in the community. Since then, bitcoin has grown from the initial article, with the increase in the number of recipients, and now the market value is close to 200 billion US dollars, which is a general upward curve growth process.
(Market performance of Bitcoin)
Similarly, Ethereum founder Vitalik buterin was born as a grassroots. Not only did he participate in writing white papers, he also participated in code writing and interaction with community developers, and Ethereum’s financing at the time seemed particularly conscience. And it is a very fair model.
(Ethernet's market performance)
This is a relatively healthy development path, from nothing to nothing.
Algorand has taken a completely opposite path: high-profile, high expectations, and high valuation.
Is high-profile wrong?
So, can we think that the high-profile route chosen by Algorand is wrong?
Before we judge, let's analyze why Algorand is high-profile, what are the benefits of high-profile, and its disadvantages.
- Can enable Algorand to quickly catch the eye of a large number of potential users;
- Able to get more money;
- Be able to launch a large number of exchanges in the first time;
- Can attract a group of talents who "see money";
- The retail investors who were attracted by the high profile were cut and unable to promote the project, and no new users were added.
- The institutions that have harvested retail investors have no face to continue to promote the project before the market picks up;
- Too much money, it is easy to change the original intention of the original project;
Through the above comprehensive considerations, high-profile Algorand is biased for a long time, but this does not mean that Algorand will return to zero. At least for now, its code base is frequently maintained, and its gorgeous team also has Certain value.
However, high-profile means that a large number of seed users will be hurt. We compare users to water, projects to boats, and water can carry boats, and can also overturn.
(Image courtesy of pexels.com)
Therefore, be wary of high-profile, high-value public chain projects born!
Through the examples of Bitcoin, Ethereum and Algorand, we can easily find that the public chain is grassroots, and the projects of a large number of well-known members are either overvalued or the institutional and retail cost gap is too large. There may be short-term eye-catching performance, but in the long run, it seems to be gradually forgotten by people.