Algorand holders are experiencing substantial losses, with a remarkable 89% underwater, while just 8% of investors in ALGO are currently in profit at its price of $0.1818. Gary Gensler’s previous praise of Algorand had contributed to the asset reaching its all-time high (ATH) of $3.56.
During the current crypto market downturn, investors holding Algorand (ALGO), Gary Gensler’s praised project, are feeling the pressure. According to data from the analytics platform IntoTheBlock, 89% of ALGO holders are experiencing losses. This means that the majority of ALGO investors have bought the asset at prices higher than its current value, leaving them “out of the money.”
Algorand Holders Experience Losses Amid Market Volatility
At the time of writing, ALGO is trading at $0.1818, showing a 5% gain in the last 24 hours. However, despite this slight increase, only 8% of Algorand holders are profitable. Additionally, 3% are at break-even, neither profiting nor losing.
Notably, among cryptocurrencies tracked by IntoTheBlock, ALGO stands out with the highest percentage of holders in a loss position.
According to IntoTheBlock statistics, at least 83% of Algorand investors are long-term holders, having held the asset for more than a year. Only 15% entered the ALGO market within the last year, while 2% bought ALGO within the past 30 days.
Silvio Micali, a professor at the Massachusetts Institute of Technology (MIT), founded Algorand in 2017. The blockchain project received praise from Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC).
Gensler’s Endorsement and Algorand’s Struggles
During his tenure teaching at the MIT Sloan School of Management in 2018 and 2019, Gary Gensler made notable remarks about Algorand. In a 2019 presentation, Gensler described Algorand as “a great technology that has a performance with which you could create Uber on top of it.”
Gensler’s endorsement gained significance after he assumed the role of SEC Chair in 2021. However, this changed when the SEC filed a lawsuit against the crypto trading platform Bittrex in April, classifying ALGO as a security.
Despite initial optimism and endorsements, Algorand has faced challenges in keeping pace with its peers. Three months after Gensler’s 2019 presentation, ALGO surged to an all-time high of $3.56. However, currently trading at around $0.1818, the asset reflects a staggering 94% drop in value since then.
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