Algorand criticizes Bitcoin, Ethereum and Solana in new announcement, community reacts

Layer-1 blockchain network Algorand criticized Bitcoin, Ethereum and Solana in its latest announcement, indicating that all three are inefficient for everyday use.

The Algorand Foundation launched a new ad on May 23, calling it “when blockchains meet the real world, only one delivers.” In the ad, three buyers appear shopping in a supermarket. Each buyer was trying to pay with one of the mentioned cryptocurrencies.

Speaking to the customer trying to pay with Bitcoin, the cashier comments that he would have to wait 27 minutes for the transaction to be executed. A direct reference to Bitcoin’s long wait times for transaction completion.

The customer who paid in Ethereum was charged $112 dollars, with the cashier reporting that it was peak network hours, resulting in high gas fees.

Meanwhile, the Solana guy, played by Algorand CTO John Woods, sees his transactions failing, referencing the network’s previous challenges with outages.

The ad ended with the appearance of businessman Anthony Scaramucci, who is one of the supporters from Algorand, asking how he could join the Algorand lineup. Buyers have been shown to achieve instant finality at significantly lower rates.

With the announcement garnering over 740,000 views at the time of publishing, reactions from the community were mixed. While many users appreciated the announcement, some praised the change.

A user shouted Algorand for funding an expensive ad but not funding its AlgoExplorer, which closed in January 2024. Interestingly, the reason behind the move, as stated by the foundation, was a “lack of funding.”

“Algorand runs 21 TPS, can’t fund its main explorer, but spends over $100K on an ad,” another user he wroteechoing similar sentiments.

Crypto commentator MartyParty also criticized the ad, claiming that what was shown about Algo Rand’s efficiency was not true.

Meanwhile, crypto analyst fiskantes.lens commented that negative advertising campaigns about competitors at this early stage of the adoption cycle were “very low movement.”

He further added that any “high TPS ghost chain” could make the same claims as Algorand, but the real test comes when it faces substantial usage.

Scaramucci was also criticized on X after some users pointed out his hypocrisy in a May 24 post about frontloading a Solana ETF, just hours before the announcement was released.

At the time of publication, Algorand native token ALGO was down 3.1% in the last 24 hours, a 95% drop from the all-time high of US$3.56 reached in June 2019.

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