Blockchain startup Algorand cited incorrect Bitcoin stats while marketing its own network. The startup claimed that its network handled over 50,000 transactions in less than a month, which it said was equivalent to what Bitcoin does every six months when the network actually does 1.8 million transactions in that time.
Algorand says it had a successful month following token sale
Algorand, a Boston-based blockchain company created to improve blockchain decentralization, made the news last month after it successfully completed a $60 million token sale. The company’s token sale implied that Algo token’s market capitalization was close to $6 billion, which would make it the seventh-largest coin—above Binance’s BNB and just below EOS.
The company’s successful token sale and mainnet launch didn’t last long though, as Algo’s value plummeted just days after the sale. But, the company maintained that everything was going according to plan, saying they had a successful month.
Algorand issued various marketing texts citing their accomplishment during the last month. The company’s CEO Steven Kokinos participated in several AMA sessions, answering questions about the state of the network.
However, the company’s claims were put to the test by a well-known independent cryptocurrency analyst and blogger, who found that some of the data Algorand provided was not only exaggerated but completely incorrect.
Crypto blogger calls out Algorand for sharing wrong stats
The analyst, who goes by the name of Hasu on Twitter, called the comparison “incredibly disingenuous marketing” by Algorand. He found several instances where the company used incorrect data when comparing its transaction volume to that of Bitcoin.
While it’s unclear where the text was pulled from, the same wrong data is used on two separate occasions.