Cryptocurrency News

Algorand Raises $60 Million in Token Sale

Algorand raised over $60 million in a token sale of its native Argo token on Coinlist, using a Dutch Auction mechanism that ensures market participants set a uniform price per Algo. All 25 million tokens were valued at $2.40. 

Company representatives told CoinDesk, the “cryptocurrency auction was the first implementation of its transparent, innovative economic model,” which stresses fairness and inclusivity in an attempt to build a “Borderless Economy.”

Algorand is where “macroeconomics meets cryptocurrency,” writes Michael Arrington of Arrington XRP Capital, in his paper “The Monetary Experiment: Algorand A Thesis For Algo Currency Markets,” published June 17.

The auction coincided with the official launch of Algorand’s MainNet. The platform handles 1,000 transactions per second with a latency of less than 5 seconds, putting it on par with the throughput of major global payment networks — such as Visa or Mastercard.

Additionally, as a permissionless, pure proof-of-stake blockchain Algorand offers the “bleeding edge cryptography with a clever economic model,” said Arrington.

This is the first time Algos entered market circulation. It is unclear how many buyers participated in the auction, which was originally scheduled to last for more than five hours, but sold out in under four due to oversubscribed global demand. 

“Algos are being dispersed to wallet right now (for successful bids).  Therefore – there are non on exchanges,” said a company representative. Therefore, no market capitalization is available for Algorand, though some have speculated it sits around $6 billion. “Which is still a top 10.”

“Our focus in the Algorand ecosystem has been to encourage broad and inclusive participation where global users, not a centralized collection of companies, control the network,” said Silvio Micali, founder of Algorand in a statement.

The Foundation previously said it will auction off 600 million Algos per year, meaning that this most recent auction of 25 million tokens only represents a portion of the forward float. Algorand also said it aims to release 10 billion Argos within its first five years of operation.

The recent equity grab was on top of the $66 million the company raised from venture capital firms such as Union Square Ventures and Pillar Venture Capital.

Algorand announced earlier this week that its node repository has been open-sourced and that it has entered into a partnership with Flipside Crypto to provide a free user engagement analytics suite.

Auction photo via Shutterstock

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