Algorand (ALGO), a new permissionless, pure proof-of-stake blockchain project, has taken the crypto world by storm over the past few days.
Earlier this week, Algorand raised more than $60 million in a token sale where the project sold 25 million ALGO, the first in a series of planned sales that will gradually increase the circulating supply.
Following the closing of the initial raise, Algorand began landing a flurry of high-end cryptocurrency exchange listings, including Binance, OKEx, Huobi and KuCoin.
— Binance (@binance) June 21, 2019
However, despite the rapid exchange adoption, investors have been cautious about loading up on the new altcoin at current levels due to concerns over the project’s whopping implied valuation.
In the recent ICO, 25 million ALGO sold for $2.40 per token, implying a valuation of $24 billion based on the token’s total supply — this would make Algorand the second-largest altcoin behind Ethereum (ETH). The price has since fallen to $2.00 after initially surging to around $4.50.
As described in a recent report by Binance, “Algorand aims to remove technical barriers that have undermined mainstream blockchain adoption: decentralization, scale, and security. Algorand is built by a team with deep roots in academic theory and science, led by Turing award winner Silvio Micali who has dedicated his career to pioneering research in the field of cryptography.”
In-Depth: Binance’s Research Report on Algorand
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.