The Algorand Foundation, the force behind layer-1 blockchain Algorand, has generated mixed reactions with its latest advertisement that takes a direct jab at rival networks Bitcoin, Ethereum, and Solana, suggesting that they are not suitable for payments.
On May 23, the Algorand Foundation released a new YouTube ad titled “When blockchains meet the real world, only one delivers.” The ad portrays a supermarket checkout scenario where shoppers attempt to pay using three different cryptocurrencies: Bitcoin (BTC), Ether (ETH), and Solana’s SOL.
In the ad, the customer trying to pay with Bitcoin is informed by the cashier that they would have to wait for 27 minutes due to the transaction time. The Ether payer is told that the transaction would cost $112 in fees, and the shopper who chose SOL is unable to complete the transaction as it keeps failing.
The camera then shifts to the next checkout queue, where customers are instantly processed using Algorand (ALGO). The captions highlight the benefits of Algorand, such as instant finality, low fees, and being designed for the speed of life.
At the end of the ad, political consultant and entrepreneur Anthony Scaramucci makes a cameo, asking how to join the Algorand checkout line. However, some commentators on social media pointed out hypocrisy after Scaramucci posted on social media that a “$SOL ETF” was coming soon, just hours after the ad went live.
The ad has garnered over 700,000 views on social media at the time of writing, causing a stir in the crypto community. One commenter criticized Algorand, stating, “Algorand runs 21 TPS, can’t fund its main explorer but drops $100k+ on an ad. This is not the way, guys.” This remark referred to the Algorand Foundation’s announcement of shutting down its block explorer, AlgoExplorer, in January.
Chainlink community liaison Zach Rynes expressed his confusion, saying, “This kind of marketing makes no sense to me.” Similarly, trader “Fiskantes” advised their 90,000 followers that negative ad campaigns about competitors at this early stage of adoption are a low move. They added that any high TPS ghostchain could make similar claims until real usage exposes the flaws.
However, not all responses were critical. Kernel Edge co-founder Hilmar Ingimundarson commended Team Algorand for their marketing approach, while XRP Cafe co-founder “Vet” found the ad amusing despite its harsh tone towards other chains.
According to DefiLlama, the total value locked (TVL) on the Algorand network is currently only $96 million, significantly lower than Ethereum’s $65 billion and Solana’s $4.8 billion TVL.
Algorand’s native token, ALGO, experienced a 2% decline to $0.183 on the day and remains 95% below its all-time high in 2019, according to CoinGecko.
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