May 5, 2022
Cryptocurrencies: Daily Update
If you’ve ever watched the World Cup then you’re probably familiar with FIFA, the world governing body of Soccer. FIFA is also well known for being the long-time namesake of the globally popular FIFA video games from EA Sports.
Yesterday, FIFA announced a new partnership with Algorand (ALGO) in which the blockchain will serve as a ‘regional supporter’ for the North American and European regions in the upcoming Qatar 2022 World Cup this November.
ALGO will also be the official sponsor of the upcoming Women’s World Cup next year as Crypto.com is already signed up to be the main sponsor for the 2022 Men’s Championship.
The key function of Algorand in this partnership will be to create an official wallet and build out FIFA’s approach to evolving into the digital asset space.
Does this mean launching NFTs? Selling Soccer merchandise for ALGO? We don’t know where this partnership will go just yet, but we do know that it will only bolster Algorand’s global adoption as FIFA begins to promote the blockchain in every country around the world.
But why choose Algorand and not a more popular blockchain like Ethereum or Binance Smart Chain?
Good question, and the 2 part answer is…
Behind Algorand is its founder Silvio Micali, a renowned Italian computer scientist, and professor at MIT. Micali was also the 2012 recipient of the Turing Award which is often referred to as the ‘Nobel Prize of Computing’ for his work in cryptography.
Although Micali has nearly 40 years of cryptographic computing experience under his belt, the Algorand project was only founded just 4-5 years ago in 2017. Algorand is arguably the culmination of Micali’s lifework, as the network touts the ability to solve the issues plaguing other popular blockchains including transaction speed, user security, and network decentralization
Algorand is a Pure Proof of Stake network similar to other major Layer 1’s like Ethereum and has the ability to host decentralized applications and services (dapps) just like any other Layer 1 blockchain. This means that Algorand supports all the fancy new Web3 tools like staking, NFTs, e-commerce, and token generation for anyone out there that wants to create their own cryptocurrency.
One thing that may separate Algorand from the pack is the network's ability to scale. Algorand runs a multi-layered blockchain, where smart contract transactions occur separately on a Layer 2 blockchain so that they can consolidate only the important information before it is permanently stored on the main Layer 1.
So if Algorand is capable of doing as much if not more than all of the other large Defi cryptocurrencies, what will motivate investors to pick ALGO over ETH, LUNA, or SOL?
Algorand is building a brand behind its technology that is seeking to achieve all of the biggest goals for the blockchain space. Algorand’s founders have pledged to offset their carbon footprint by recording the network's energy consumption and contributing an equivalent amount to green initiatives. Another aspect of Algorand’s branding approach is what we’re seeing with their current sponsorship deals, which allow for the project to tap into other industries that can benefit from adopting ALGO tech.
If you think that branding isn’t enough to help Algorand grow to be bigger than any of its competitors, think again. Just look at Dogecoin (DOGE) or Shiba Inu (SHIB) as an example of highly successful branding in the cryptocurrency space. Neither DOGE nor SHIB actually does anything other than offer a tradable token, but their ability to create hype and brand successfully with people like Elon Musk has helped both coins to become some of the largest cryptocurrencies in existence.
ALGO claims to have the technology to put them ahead of other major Defi cryptocurrencies, now we get to see if they’ll be able to hit stride with marketing their brand to a global audience. With FIFA being one of the most recognizable organizations and soccer being the most popular sport in the world, it looks like Algorand is already swinging for the fences.
**If we discussed a cryptocurrency that you would like to trade but isn’t offered on your current crypto exchange, please click here in order to view a profile on any tradable cryptocurrency, as well as a list of exchanges that do offer the coin for trading.**
To track our CryptoPulse Quant trading strategy or use our crypto tools and resources, please check everything out here:
“*” Simply click a ‘symbols’ to see an interactive chart