The Algorand Foundation, the organization behind layer-1 blockchain Algorand, has sparked a mix of reactions with its recent advertisement that takes a direct jab at rival networks Bitcoin, Ethereum, and Solana, suggesting that they are not suitable for payments.
Released on May 23, the advertisement titled “When blockchains meet the real world, only one delivers” was posted on YouTube by the Algorand Foundation. The ad showcases a supermarket checkout scene where customers 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 the transaction will take 27 minutes. The Ether payer is told that the transaction would cost $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 instantly processed using Algorand (ALGO), with captions highlighting “Instant finality. Low Fees. Designed for the speed of life.”
Towards the end of the ad, political consultant and entrepreneur Anthony Scaramucci makes a cameo appearance, asking how to join the Algorand checkout line. However, some commentators on X platform pointed out hypocrisy after Scaramucci posted 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 and has generated significant discussion on social media within 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.” The user was referring to the Algorand Foundation’s decision to shut down its block explorer, AlgoExplorer, in January.
Zach Rynes, a community liaison for Chainlink, expressed his confusion over this kind of marketing strategy. Meanwhile, trader “Fiskantes” advised their 90,000 followers on X that negative ad campaigns about competitors early in the adoption cycle are not a wise move. They added that any blockchain with high TPS (transactions per second) can claim what Algorand claims until it faces real-world usage challenges.
However, not all responses were critical. Hilmar Ingimundarson, co-founder of Kernel Edge, praised Algorand’s marketing approach, describing it as “spot on.” Likewise, “Vet,” co-founder of XRP Cafe, found the ad humorous despite its aggressive tone towards other chains.
According to DefiLlama, the total value locked (TVL) on the Algorand network is currently just $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% decline on the day, trading at $0.183. It remains 95% lower than its all-time high in 2019, according to CoinGecko.
In other news, the SEC is facing a formidable battle against the legal firepower of the crypto industry, much like the clash between Godzilla and Kong.