Risk of an Algorand ETN: You may lose money up to the total loss of your investment due to the extreme volatility of this asset class and the Main Risk Factors of an Algorand ETN described below and additional risks described in the sales prospectus.
Algorand designed a protocol that significantly expands the range of decentralized applications (DApps), decentralized finance (DeFi) solutions, and processes that can be built on the Algorand platform. With this new suite of features all built directly into Layer-1, enterprise-scale distributed apps can be created without sacrificing performance or security.
Algorand ETN by VanEck is based on the performance of the MarketVector™ Algorand VWAP Close Index.
| 1 Month | 3 Months | YTD | 1 Year |
3 Years (annualised) |
5 Years (annualised) |
|
| MarketVector™ Algorand VWAP Close Index | -10.95% | -38.44% | -36.71% | 30.89% | -46.17% | -31.65% |
Figures in the table as of 11 July 2024. Periods greater than one year are annualised. Source: VanEck, MarketVector. The performance quoted represents past performance which is not a reliable indicator of future results. Future performance may be lower or higher than current performance. Investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.
Source: VanEck, MarketVector. The performance quoted represents past performance which is not a reliable indicator of future results. Future performance may be lower or higher than current performance. Investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.
Despite all the hype, digital assets are a highly risky investment. Below are key risk factors that need to be considered before making an investment in Algorand ETN.
The trading prices of many digital assets have experienced extreme volatility in recent periods and may well continue to do so. Digital assets were only introduced within the past decade and regulatory clarity remains elusive in many jurisdictions. Digital assets' value depends on such regulation remaining favorable, as well with the technological capabilities, the development of protocol networks, competition from other digital asset networks and from forks. Volatility can be strongly amplified by transactions from speculative investors, hedge funds and other large investors. You may experience losses if you need to sell your Shares at a time when the price of the underlying digital asset is lower than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate a profit. That is one of the risk factors to take into account before making an investment in an Algorand ETN.
If the currency of the Product differs from the currency you invest in, your final return depends on the exchange rate between your investment currency and the currency of the Product. That is one of the factors to consider before investing in an Algorand ETN.
Trading venues and systems used by market participants to trade ALGO may be subject to hacking and could result in loss of ALGO.
Investors in an Algorand ETN can lose all invested capital. The Product does not include capital protection against market risk. At the end of the term the issuer may not be able to pay the final redemption amount. This is another factor to take into account when considering an investment in an Algorand ETN
