The Algorand Foundation has generated mixed reactions with their latest advertisement that takes a bold stance against rival blockchain 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 features a scene at a supermarket checkout where shoppers attempt to pay using three different cryptocurrencies: Bitcoin (BTC), Ether (ETH), and Solana’s SOL.
In the ad, the individual trying to pay with Bitcoin is informed by the cashier that they would have to wait 27 minutes for the transaction to be processed. The Ether payer is told that the transaction would incur $112 in fees, while the shopper who chose SOL is unable to complete the payment due to transaction failures.
The camera then shifts to the next checkout queue, where customers are seamlessly using Algorand (ALGO) for instant transactions. The captions read, “Instant finality. Low fees. Designed for the speed of life.” Notably, political consultant and entrepreneur Anthony Scaramucci makes a cameo at the end, inquiring about joining the Algorand checkout line. However, some commentators on X pointed out the hypocrisy of Scaramucci’s post on X about a “$SOL ETF” just hours after the ad went live.
The ad has garnered over 700,000 views on X at the time of writing, sparking a significant reaction on social media within the crypto community. One commenter expressed their skepticism, stating, “Algorand runs 21 TPS, can’t fund its main explorer, but drops $100k+ on an ad. This is not the way, guys.” This comment refers to the Algorand Foundation’s decision to shut down its block explorer AlgoExplorer in January.
Zach Rynes, a community liaison for Chainlink, expressed confusion about this marketing approach, stating, “This kind of marketing makes no sense to me.” On the other hand, trader “Fiskantes” advised their 90,000 followers on X that negative ad campaigns targeting competitors during the early stages of adoption are not a wise move. They emphasized the importance of original ideas and cautioned that any high TPS ghostchain can make similar claims to Algorand, but the true test lies in its actual usage.
However, not all responses to the ad were critical. Hilmar Ingimundarson, co-founder of Kernel Edge, praised the Algorand team for their marketing strategy, while “Vet,” co-founder of XRP Cafe, found the ad amusing despite its harsh stance against other chains.
According to DefiLlama, the total value locked (TVL) on the Algorand network is currently only $96 million, significantly lower than Ethereum’s TVL of $65 billion and Solana’s TVL of $4.8 billion. Algorand’s native token, ALGO, experienced a 2% decrease in value, trading at $0.183, and remains 95% below its all-time high in 2019, according to CoinGecko.
In related news, the SEC faces a formidable battle against crypto’s legal firepower in a manner reminiscent of the clash between Godzilla and Kong.