Algorand (ALGO) may now adorn itself with the Nobel Prize for Economics, at least indirectly. Paul Milgrom, who was awarded the prize on Monday, has been on board with Algorand as an official consultant for several weeks. Milgrom deals with auction models.
Algorand (ALGO) is probably the first crypto currency to come along with Nobel Prize honors. Already inventor and figurehead Silvio Micali advertised at the launch of Algorand in summer 2019 with the Turing Award, which he had won as the unofficial Nobel Prize in Computer Science 2012. And now there is a US professor in Paul Milgrom, who is delighted to receive this year’s Nobel Prize for Economics and who joined Algorand’s team of advisors earlier. However, the prestigious news did not help ALGO’s share price: ALGO remains at values below USD 0.50, far from the USD 2.40 achieved in the free sale before the launch.
Background on Nobel Prize winner Paul Milgrom and Algorand
When Algorand reported the identity of Paul Milgrom in September, his expertise in “modern microeconomics” was emphasized. Milgrom was quoted in reference to Algorand as saying that he felt honored to advise “one of the most advanced and powerful block chain platforms”. Milgrom is 72 years old and teaches at Stanford University. His models for auctions are used in practice by the U.S. and other countries, among others, when they auction off frequencies for cellular and radio.
Milgrom has now received the Nobel Prize for Economics together with Robert Wilson, who also teaches at Stanford. Their research on auctions has helped sellers, buyers, and even the treasury worldwide, the Nobel Prize Committee announced. The Nobel Prize for Economics, like the classic Nobel Prizes, is endowed with around 960,000 euros, but has only been awarded since 1996. Critics therefore see it as not being on a par with the Nobel Prizes for peace, literature, medicine, chemistry and physics, which have existed since 1901.
Algorand got off to a dream start in the summer of 2019, but had to digest dramatic price falls shortly afterwards. Algorand recently announced that its own block chain will also serve as the basis for a version of the Stablecoin USDC and will be the basis for a state-supported digital currency (CBDC) on the Marshall Islands.
Conclusion: ALGO with Nobel Prize honors, but share price weakens threateningly
Algorand has seen and continues to see block chain and ecosystem at the forefront of technology with more than 1,000 transactions per second (TPS). But on the crypto stock exchanges, people have lost faith in ALGO to some extent, and ALGO has never really recovered from the downturn in autumn 2019. The use cases for ALGO remain too theoretical from the perspective of many investors. However, with the recent Nobel Prize winner Paul Milgrom, doors could open for Algorand that have been closed so far.