Blockchain Investor Analysis

Algorand

ALGO
Current Price $0.24 (-0.09%)
Algorand (ALGO) is a smart contract platform that focuses on security, scalability, and decentralization. The Alogrand team is working toward building a truly decentralized, unforkable, proof of stake platform that acts as a gateway to the decentralized economy. The ALGO token is a utility token used to interact with the network.

Our Rating:

Market

Problem that it solves

Algorand is a smart contract platform that takes on some of the more

Customers

Anyone looking to develop and deploy decentralized applications and smart contract solutions could be a potential customer for Alogrand.

Value creation

The ALGO token enables holders to access the platform, have a say in the network's governance, and earn staking rewards.

Market structure

The market structure for Algorand is still emerging, yet it's emerging quickly. Algorand already has several impressive partnerships and adoptions stuck in its cap.

Market size

The potential market size for Algorand is substantial as more businesses are exploring decentralized applications and other blockchain solutions.

Regulatory risks

Algorand looks like something regulators would casually dismiss as a non-threat, but if the Algorand team abuses its control over the blockchain, regulators' ears may perk up.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Algorand was built from scratch. It was built by a veritable genius, but, still, it was built from scratch.

Lead time advantage

The Algorand concept of

Contacts and networks

Algorand has access to networks by virtue of the clout Silvio Micali swings due to his Turing award and MIT status.

Average Competitive Advantage Score

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Management Team

Entrepreneurial Team

Silvio Micali's success as a mathematician and academic is unquestionable. His track record thus far with Algorand is also strong, yet his digital asset portfolio is, mostly, theoretical and scholarly.

Industry/technical experience

Silvio Micali completely altered his focus as an academic relatively early in the digital asset game. His experience stems from that commitment and the success of Algorand so far.

Integrity

There doesn't seem to be any smoke and mirrors surrounding Algorand's team.

Average Management Team Score

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Token Mechanics

Token required

Users need the ALGO token to interact with the network.

Value added

The ALGO token is "another one of those" because it serves a purpose similar to other smart contract-supporting coins.

Decentralized

Algorand's decentralization is marginal, at best. The team is purposely controlling up to 49% of tokens used to vote on future developments so they can keep their hands on the steering wheel—at least for the time being. If they get 2% of everyone else to agree with their position, then, voila, they win.

Token supply

The token supply of Algorand is capped at 9,979,490,657.

Public exchange

ALGO is available on several exchanges but not all majors.

MVP

Algorand launched its mainnet in June, 2019.

Average Token Mechanics Score

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User Adoption

Technical difficulty

Algorand offers a compelling premise: Build on this blockchain and you're less likely to get hacked, and things will be fairly decided. This may be fueling much of the early adoption.

Halo Effect

Anytime you name-drop MIT or Turing award, doors creak open. Beyond that, however, the project has little Halo Effect.

Buzz

Algorand is one of the more talked-about blockchain ventures on social media. However, many of its competitors have been able to generate substantially more buzz.

Average User Adoption Score

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Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Algorand is boldy going where several have tried to go before, but they're taking a slightly different path. Their "pure" proof of stake approach has already peaked the interest of some heavyweight partners and the digital asset community hasn't shied away, either: 200 million ALGOs were staked as of September 2019.

However, unless the Algorand team takes their hands off the reigns by publicly and verifiably taking a stand against using their ALGOs to guide the platform, the centralization label may remain a sword of Damocles dangling over its head. While Algorand is a brilliant concept, its centralized nature and limited competitive advantage drag down its score.

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