With the cancellation of the Dutch auction and the undecided right to withdraw coins, Algorand is based on rumors of high IQ harvesting?
Editor's Note: This article comes from31QU（ID：blockchain31）, Author: Ganoderma lucidum, reproduced by Odaily with authorization.
Editor's Note: This article comes from
, Author: Ganoderma lucidum, reproduced by Odaily with authorization.
Algorand, which investors have been looking forward to, has finally received new news.
On July 31, Algorand issued an official announcement stating that "(the introduction of the new Algo to the market) will not be bound by a specific timetable", "EAC does not recommend any other sales in the third quarter of 2019", "retire The payment policy may be adjusted in future auctions."
In other words, Algorand’s Dutch auction, which was originally scheduled to be held twice a month, was officially aborted. In addition, the subsequent 90% refund policy may change.
As soon as the new news was released, it immediately attracted people's doubts:
"What concept does the refund policy adjust?"
"When the price is high, it will be auctioned. The officials are too greedy and change the rules at will."
"This project has technology and money, but it has no integrity"
"Is there any guarantee for the 90% refund right?"...
Similar doubts and crusades flocked to Algorand. Investors who originally thought of relying on the second phase of the auction to recover their losses ultimately failed.
For investors who successfully participated in the first Dutch auction, although one and a half months have passed, the shadow of losing money and being cut off after participating in the investment before is still lingering and has not completely dissipated.
Today, there is news of a miscarriage from the Dutch auction, and it is still unclear whether the 90% refund right can be realized. Is the star project Algorand really going to be based on the rumors of high IQ harvesting retail investors? Or, is it a new charge?
Text / 31QU Ganoderma lucidum
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Long overdue official announcementOn the last day of July, investors who still had illusions about Algorand finally received a blow.At 1:30 this afternoon, Algorand officially released the latest article "Promoting the Economic Balance of the Algorand Ecosystem|Recent Experience Summary Report| Dutch auction again; refund policy subject to change.“We will introduce new Algos to the market, taking into account market dynamics and the needs of the ecosystem, rather than simply conducting regular auctions until the supply is fully exhausted. Therefore, it will not be bound by a specific timetable.The EAC Advisory Committee will regularly update its opinion on the need for additional tokens in the near future.The EAC is not recommending 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 summary of the recent experience of the Algorand team. After nearly two months of market baptism, the new financing method is confirmed to be invalid: "The auction price includes the value of the token and the value of the refund policy. This factor may make Price discovery is more difficult and may have increased stress and volatility in the market. We will try to correct this in subsequent auctions to reduce poor outcomes in terms of Price Discovery and market dynamics."According to Algorand's previous plan, the project will conduct auctions twice a month, releasing 25 million tokens each time. If the normal process is followed, the new phase should start around July 5th, and the second phase of the auction will be delayed Undecided, but ultimately cancelled.The announcement also mentioned that part of the reason for the serious decline in the ALGO secondary market was the selling pressure from the initial node operators.“All node operators collectively receive an average of 3.2 million rewards per day. More than 50% of the Algos earned by node operators are kept online by their nodes and participate in the consensus protocol.All node operators receive a total of 3.2 million rewards per day on average. More than 50% of the Algos earned by node operators are kept online by their nodes and participate in the consensus protocol.To this end, the Algorand Foundation's solution is: "Considering giving higher rewards to participants who are willing to lock tokens for different periods of time, encouraging them to increase the number of tokens held by long-term Staking."
In addition, the announcement also re-emphasized the issue of the 250 million Algos funds retained by the Algorand Foundation and Algorand, Inc.
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Li Ran (pseudonym), who has been following the progress of the Algorand project, is not surprised by today's announcement.In his opinion, the time for the second phase of the auction, which was originally scheduled, has not been set yet, and it has been delayed again and again, "it must be suspended."Li Ran told 31QU that earlier this year, he participated in an Algorand offline event at Tsinghua University, but there were not many people there, "mostly students". He added that the effect of the whole event was not ideal, "The first quarter of the time was spent in the PR of the Student Blockchain Association, and the speech process of the chief scientist of Algorand was not only difficult to understand, but also very impatient when faced with doubts. .”In addition, Algorand Operations Director, who originally planned to attend the Staking Ecological Conference on the 10th of this month and arranged a keynote speech, did not make the trip in the end.In this regard, there is a saying, "The team is preparing for the second phase of the auction and is about to pull the market to build momentum. Worried about the suspicion of users, the team will pull the price as soon as they show up, and finally cancel the trip."In fact, as early as Algorand’s first phase of the auction, after the performance of tokens plummeted, the Algorand community has already complained. For the second phase of the Dutch auction, the investors in the group are not as crazy as before. Judging from the evaluation, most of them are full of pessimism mood:"It will be cold as soon as you enter the venue.""What a disappointment with ALGO, one low price a day.""If the price is not raised, the project party's two monthly auctions will be useless.""If the second auction can't stop the loss and continues to fall, then the coin will be scrapped immediately."...However, different from the generally pessimistic attitude of retail investors, Li Xi (pseudonym), the head of the organization who participated in the private placement round of the project before the auction, told 31QU that in the long run, the current price of $1 cannot represent the price of Algorand. It is judged that "the price of the second phase of the auction will be higher than the market price".Li Xi told 31QU that the income from investing in Algorand is indeed good, but the rumors that "sell it when it goes online, and institutions make a lot of money" and "retail investors take over the order" are not accurate, because they don't get all of them at once. For the unlocked tokens, "the official has long set the rules for daily linear release, and it is impossible for institutions to sell them on a large scale."
The high price of the first auction and the good news that several major exchanges launched ALGO at the same time boosted the fanaticism of supporters.
▲ Price trend of Algorand tokens after listing
But the good times didn’t last long. Just three days later, ALGO was like a flood that opened its gates, and fell all the way down. By July 31, the price had fallen below $0.6, and it was temporarily reported at $0.56.
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The pessimistic mood contrasted sharply with the rush ahead of Algorand's first auction.In fact, as the first blockchain project to test the waters using Dutch auctions to sell tokens, Algorand's participation threshold is not low.It is understood that first of all, this auction does not support Chinese people. If Chinese people want to participate in the auction, they can only buy foreign KYC accounts. In addition, for investors who do not understand Dutch auctions, it may cause excessive costs because they do not know how to bid. High, or unable to shoot.It is precisely because of various problems that Algorand financing this time has an alternative "proxy investment" that is different from the past."Actually, we opened up the Algorand proxy investment channel because users asked a lot, so we took this idea into consideration."Deng Chaohua, COO of Hufu Wallet, told 31QU that after deciding to open the participation channel, the team estimated the number and expectations of users’ possible participation based on experience, and finally decided to open 300 bitcoin shares.The enthusiasm of users exceeded the expectations of the team."Our event officially started on June 15, and the fundraising was completed in just 2 hours." Deng Chaohua said that this event attracted more than 300 people to participate, and the average participation amount was 0.9 bitcoins. Some of them are old users, and the number of participants is about the same as our expectation."The whole process from the start of the event to the completion of token distribution, and then to the opening of withdrawals, "the time is still very tight." He told 31QU, "Because most users want to sell immediately after going online, or move bricks for arbitrage. Therefore, users I will be very concerned about whether the wallet can be opened for deposit and withdrawal at the first time."It is understood that not only Hoo, but also wallets, exchanges and other platforms including Cobo, CoinPark, etc., have opened proxy investment channels, and each has its own characteristics.Among them, CoinPark adopts the form of using the platform currency to fill the mine according to the anchor value to obtain equivalent ALGO token rewards; Hufu also launched a token that is bound to ALGO’s right to withdraw tokens after one year——TALGO, which is suitable for participating in the platform Users confirm their rights, "similar to European put options"."From the perspective of user transaction motivation, those institutional users who are more interested in TALGO are those institutional users who participated in the private placement of the project in the early stage, bought the right to withdraw coins, and locked in the proceeds.""The Dutch auction can raise more money for the project, but in essence, this kind of game on the price of token issuance is more like a financial game, which is not a good thing for blockchain projects that emphasize community power. "
In fact, "whether it is a cryptocurrency fund or the original proxy investment, everyone is doing business with poor information." He told 31QU that this time the wallet did not charge an intermediary fee, but it can be regarded as "a disguised proxy investment." , but in the future "the chances of other wallets following suit should not be too great."
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In fact, since the project was launched, Algorand has attracted everyone's attention.Gödel Award, RSA Award, Turing Award Winner, Professor Silvio Micali of the Massachusetts Institute of Technology proposed that many heavyweight experts participated and pioneered the solution to the "impossible triangle" problem...Many important titles have been continuously raised What people can expect from Algorand tokens.However, the dazzling "origin" did not allow ALGO to maintain its long-term glory.On June 19th, the Algorand mainnet was launched in anticipation. The Dutch auction that night came to an end in just 3 hours and 37 minutes. In the end, 25 million ALGOs were sold at a unit price of 2.4 US dollars, and a total of 60.4 million US dollars were sold , if this price is followed, the total market value of tokens will reach the top 8 in the world.However, even if the good situation of many first-tier exchanges tacitly launched ALGO, it could not last for too long. Three days later, ALGO went on the road of three consecutive losses on the daily line: it began to plummet by 26.96% on June 22, fell by 9.78% on the 23rd, and plummeted again by 21.88% on the 24th. On the 25th, the price once fell to $1.31. At the lowest point, the drop reached 60% at one point...The plunge has caused overwhelming controversy.In the Algorand investment community, comments began to appear that "the Turing Award sickle cuts faster and harder", "IQ is flawed", "the opening price is 48 times, it is not too strange to fall", and even "there is a chance to see 1 below the dollar" pessimism.
To make matters worse, on June 28, the Beijing Mutual Finance Association once again issued a warning about the risks of investing in the virtual currency market, and Algorand was on the list: Some institutions "use the Algorand project, DVS currency, etc. to continue to carry out illegal cross-border financial activities."
The dismal performance of the currency price and the abuse of users pushed this star project into the abyss of public opinion step by step.
Previously, this blockchain project participated by the winner of the Turing Award was praised by many investors; now, "Turing" has been jokingly referred to as "slaughter". In front of the market and capital, even the Turing Award, Also become worthless.
