Algorand Foundation CEO Staci Warden played down the significance of ALGO’s underwhelming performance, saying, “We don’t think about price.”
In a recent interview with Real Vision Crypto, Warden brushed aside the relevance of price, instead highlighting the Foundation’s success in attracting developers to the ecosystem and ensuring their success.
“We are having a Cambrian explosion of builders on this ecosystem right now. I will say we try to make sure that they have a good path to success.”
Algorand is down 50% from its 2023 peak
Algorand opened 2023 at $0.1721, experiencing a run that peaked at $0.30 by February 7.
The zone around $0.24 provided support, leading to a bounce that failed to break through $0.2913 two weeks later.
An accelerated downtrend followed that was reversed as market leader Bitcoin showed strength off the back of the March banking crisis – with sentiment flipping in favor of hard assets, as opposed to fiat proliferation.
Nonetheless, this recovery was somewhat muted, with the $0.24 zonal support zone now acting as resistance – leading to three rejections and a further spill that triggered on April 17.
As of writing, Algorand had sunk to $0.1507, marking a 50% drop from 2023 highs and, more significantly, a level not seen since March 2020 – marking a 38-month low.
Furthermore, the coin is down 96% from its all-time high price of $3.56, achieved on June 20, 2019.
CEO addresses tough questions
In an April SEC filing against Bittrex, the Algorand Foundation and Algorand Inc were accused of breaching securities laws via the common enterprise and expectation of profit prongs of the Howey Test.
“These statements led reasonable ALGO investors throughout the Relevant Period to expect that the demand for ALGO would likely increase based on Algorand, Inc.’s and Algorand Foundation’s efforts to increase demand for the Algorand technology, thereby resulting in a price increase for ALGO.”
During the interview, Warden said the enforcement action was a surprise because the Foundation is not based in the U.S., nor is ALGO issued within that jurisdiction.
On the MyAlgo Wallet hack, which began around February, Warden said the Foundation gave the company a grant but is not related in any other way. Forensic examinations turned up no clues on the cause of the hack, leading them to turn things over to the FBI.
In closing the interview, Warden stated that Algorand is a young ecosystem not focused on hype. Instead, they prefer to focus on developers, protocols, and to follow “a bottoms-up strategy.”