- The SEC classifies Algorand’s native token, ALGO, as a security.
- Attorney Bill Morgan says this classification challenges the blockchain platform.
- Crypto analyst ELDAR criticizes Algorand’s ineffective marketing strategies.
The U.S. Securities and Exchange Commission (SEC) classifies ALGO, the native token of Algorand, as a security. According to renowned attorney and digital asset advocate Bill Morgan, this classification contributes to the challenges faced by the blockchain platform.
Morgan shared his thoughts in response to a post by a crypto analyst known as ELDAR on X (previously Twitter). ELDAR pinpointed the issues with Algorand, attributing them to the project’s failure to implement effective marketing strategies. He argued that the problem lies in something other than Algorand’s technology or the scale of projects being developed on its platform.
ELDAR highlights that ALGO’s challenges primarily arise from the public and crypto media/influencers’ insufficient understanding, a consequence of Algorand’s subdued marketing approach. He asserts that Algorand’s inability to implement vigorous marketing and awareness campaigns negatively impacts the project and its ALGO stakeholders.
In his comparative analysis, ELDAR highlighted that blockchain platforms such as BTC, ETH, ADA, MATIC, XRP, and HBAR, among others, have a superior track record in fostering projects developed on their infrastructure. He posits that if the projects on Algorand’s infrastructure were on any of these platforms, they would be the subject of much discussion and attention.
ELDAR has identified several initiatives leveraging Algorand’s blockchain infrastructure, including ISDA, a universal global corporate derivatives market standard. He estimates the derivatives market to be worth nearly $1 quadrillion. ELDAR also highlighted a sureties bond project by the Bank of Italy, valued at EUR250 billion. He characterized this as the largest tokenization of debt capital market bonds on the blockchain, surpassing previous records by a substantial margin.
ELDAR highlighted several initiatives operating on the Algorand blockchain, such as TIPS (Bank of Italy/EU), and the European Targeted Instant Payment System. He elaborated that this system handles approximately EUR 1.7 trillion daily, positioning it as the most substantial payment system worldwide. Additionally, he pointed out numerous other projects leveraging Algorand’s technology, including Agrotoken, Lofty, SIAE, HesapPay, and TravelX, among others.
