The new algorithmic currency system aims to provide a more “stable, efficient and scalable” asset than common coins like Bitcoin.
Disclaimer: This article was updated to reflect that Temasek denied its $10 million investment in Array.
Singapore’s government-owned investment firm Temasek has denied a $10 million investment in Array, the developer of the algorithmic currency system based on smart contracts and artificial intelligence.
On May 2, Temasek issued a statement declaring that the firm has not invested in Array. The company also emphasized that Temasek has no relationship with Array.
The statement came shortly after Array announced the funding on May 1, claiming that the raise is its second funding round. The funding reportedly brought Array’s valuation to more than $100 million.
Both Array and Temasek didn’t reply to Cointelegraph’s request to comment on the initial reports on May 1.
Array’s new algorithmic currency system aims to provide a more “stable, efficient and scalable” asset than traditional cryptocurrencies like Bitcoin BTC $28,062. The system is expected to have a variety of use cases, including payments, remittances as well as investments.
Array’s smart contract platform, ArrayFi, is designed to enable decentralized applications built on top of its network and driven by its proprietary AI algorithm ArrayGo. Based on the bonding curve smart contract, ArrayGo operates independently without any human or institutional control and is triggered solely by market actions, the firm said.
“In order to ensure the value of the token remains stable and predictable for investors and traders indefinitely, a traditional bonding curve is implemented manually,” the Array team noted in a Medium blog post. The bonding curve is implemented into a smart contract that governs the issuance and trading of the native token Ara (ARA).
According to Array’s first Twitter Space conducted in February, the company’s bonding curve mathematics aims to ensure that Array users are protected against “pump-and-dump” schemes.
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Temasek denied exposure to new crypto projects shortly after facing major issues due to such investments. In November 2022, Singapore government openly admitted that Temasek suffered reputational damage due to investing in the collapsed crypto exchange FTX. Singaporean Deputy Prime Minister Lawrence Wong argued that Temasek suffered a lot more than just financial losses due to investing in FTX.
Temasek, which is fully owned by the Ministry of Finance but operates independently, was forced to write down its entire $275-million FTX investment. The amount accounted for just 0.09% of Temasek’s $403 billion portfolio as of March 2022.
In April, Temasek also participated in a $10-million Series A round for the United States-based impact-verification and intelligence firm BlueMark.
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