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Scaramucci Sees Algorand As the Undiscovered Google of Crypto

Algorand (CCC:ALGO-USD) is the favorite cryptocurrency of a major hedge fund, according to a recent article in Cryptoglobe. Anthony Scaramucci, the founder of Skybridge Capital, an NYC-based hedge fund, told a YouTube channel called Digital Asset News that he had put $250 million into ALGO crypto.

Algorand logo in light blue against a simple dark-colored, futuristic-looking background

Source: shutterstock.com/Shizume

That revelation can be seen in this interview posted on Jan. 13. After listening to Scaramucci discuss Algorand, you get the feeling that he really likes ALGO crypto for the long term.

Scaramucci’s Interview

Scaramacci starts the interview by stating that he had been a crypto skeptic when first introduced to Bitcoin (CCC:BTC-USD) by the Winklevoss twins. He put $270 million in Bitcoin in early 2020 and he told stories about how his investors initially resisted his efforts. But later they congratulated him, even though his investors went along “kicking and screaming.”

Interestingly, he told how he had been too highly influenced by Warren Buffett on new types of investments, such as Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and then Bitcoin. He decided to take a break from these old influences. In fact, he pointed out that in the beginning, Amazon was very volatile too, just like Bitcoin.

Instead, volatility is the price of growth, according to Scaramucci. That said, he likes Algorand so much that he has put $250 million into ALGO crypto. This is at the end of the interview where he calls it the “Google” of the crypto world.

He explained that Google’s machine learning algorithms “trumped” the competition for search in the early days of the internet. Similarly, Algorand provides an easy way for big enterprises to access Defi (decentralized finance) applications and the tokenization side of the market: “They will need something that that is scalable like Algorand, secure like Algorand, and ultimately decentralized, so that they won’t have to worry capricious inflation, deflation, of what it is they are using as a form of value.”

Where This Leaves ALGO Crypto

Scaramucci’s attitude that Algorand is an undiscovered “Google.” It will eventually become big and overtake many other cryptos is very apparent in the interview. He has put a large amount of money, a quarter of a billion dollars, into the cryptocurrency. That is putting your money where your mouth is.

Algorand has a market capitalization of $8.85 billion and is ranked by Coinmarketcap as the 25th largest cryptocurrency. At $1.37 per ALGO crypto-token, it is below where $1.6779 the price as of Dec. 31, 2021. This gives it a drop in performance of 18.35% year-to-date (YTD).

In fact, since Nov. 12 when it peaked at $2.2649, it’s down 39.5% to 89.49 cents since then. To say that Algorand is volatile is to put it mildly.

But, just like Amazon was highly volatile in its formative years, and now isn’t, the price of growth is volatility. It may not necessarily reflect what is going on with the fundamentals of the cryptocurrency, just like the Amazon volatility was not reflective of its early high growth.

Investors may want to follow Scaramucci into Algorand, given his reputation and stance as a mover and shaker on Wall Street. But just remember, this security can be very volatile. You have to be able to live with the volatility of ALGO crypto. Do not let it affect your long-term view of the cryptocurrency.

On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Mark Hake writes about personal finance on mrhake.medium.com and Newsbreak.com and runs the Total Yield Value Guide which you can review here.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/scaramucci-sees-algo-crypto-as-the-undiscovered-google-of-crypto/.

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