Auroracoin

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Auroracoin
ISO 4217
Unit
Symbolᚠ[citation needed]‎
Demographics
Date of introduction25 March 2014
User(s)Iceland (de-facto)

Auroracoin (Abbreviation: AUR; sign: ᚠ) is a peer-to-peer cryptocurrency launched in February 2014 as an Icelandic alternative to bitcoin and the Icelandic króna.[1][2] The unknown creator or creators use the pseudonym Baldur Friggjar Óðinsson (or Odinsson).[2] They stated that they planned to distribute half of auroracoins that would ever be created to all 330,000 people listed in Iceland's national ID database beginning on March 25, 2014, free of charge, coming out to ᚠ31.8 per person.[3][2]

Auroracoin was created as an alternative currency to address the government restrictions on Iceland's króna, in place since 2008, which severely restricts movement of the currency outside the country.[2]

Auroracoin uses the Scrypt algorithm and is a clone of the very first alternative coin, Litecoin.[4][5] Half of the Aurora tokens were pre-mined and distributed to the people of Iceland. In the first phase, each resident of Iceland received AUD 318 per person.[6][7] The number fluctuated to 318 coins in the second phase and increased to 636 in the third phase. Moreover, the remaining 50% of the coins were destroyed.

Many coin recipients cashed out their tokens, leading to a massive price drop in the weeks following the giveaway.[8] The value of the coin lost as much as 80% in 24 hours.[9] AUR was deemed a failed experiment. Auroracoin never got the hype it was hoping for.

Auroracoin never got the hype it was hoping for. The total market capitalization of this coin was $7,12695 and the total number of coins minted was 1,319,306 pieces. Moreover, the number of these coins in circulation is the same as the total number of coins minted, which is 1,319,306.

The total blocked value is $269 million dollars. Aurora is known for providing Ethereum compatibility, near-protocol scalability, and an industry-first user experience through accessible transactions.[10][11] The average blocking time for Auroracoin is 1 second, while the transaction value is $002 dollars. The total number of projects on Aurora is 115+, and finally, the token price for Aurora is 142 dollars.

History[edit]

It has been suggested[by whom?] that 'in many ways, Iceland could be seen as an ideal place for a virtual currency' on account of the limited use of cash, extensive familiarity with electronic finance, and extensive interest in Bitcoin in Icelandic society, coupled with the long-term instability of the króna.[12]

Airdrop[edit]

The developers used the Kennitala national identification system to give away 50% of the total issuance of Auroracoins to the population of Iceland, a process known as an airdrop, hoping to bootstrap a network effect and introduce cryptocurrency to a national audience.[13]

Controversy[edit]

As of 2015, the legal status of cryptocurrencies in Iceland was unclear, though the Auroracoin airdrop involved government approval of Odinsson's use of the national database of citizens, Íslykill.[14] Some Icelandic politicians have taken a negative view of Auroracoin. During a parliamentary debate on March 14, 2014, MP Pétur Blöndal, vice-chair of the Parliament's Economic Affairs and Trade Committee (EATC), emphasized that potential tax evasion through the use of Auroracoin could impact Iceland's economy. He also said that the public should realize that Auroracoin "is not a recognized currency since no-one backs the medium".[citation needed]

MP Frosti Sigurjónsson, a member of the ruling Progressive Party and Chairman of the EATC, suggested in a blog post on his website that there is evidence that Auroracoin is an illegal financial "scam".[15]

References[edit]

  1. ^ Samúel Karl Ólason (February 6, 2014). "Auroracoin dreift til allra Íslendinga". Vísir.is (in Icelandic). Retrieved September 2, 2020.
  2. ^ a b c d Casey, Michael J. (March 5, 2014). "Auroracoin already third-biggest cryptocoin–and it's not even out yet". (Blog) The Wall Street Journal.
  3. ^ Karl Ólafur Hallbjörnsson (March 24, 2014). "Nýr rafeyrir að nafni Auroracoin er öllum Íslendingum fáanlegur frá miðnætti". Vísir.is (in Icelandic). Retrieved September 2, 2020.
  4. ^ "Auroracoin (AUR): Meaning, History, FAQs". www.investopedia.com. Retrieved May 16, 2024.
  5. ^ "Auroracoin". www.worldcryptoindex.com. Retrieved May 16, 2024.
  6. ^ "Aurora Token Distribution V.1". aurora.dev. Retrieved May 16, 2024.
  7. ^ "Auroracoin Makes a Comeback in Iceland, the Country Mired in Financial Scandals". cointelegraph.com. Retrieved May 16, 2024.
  8. ^ "Auroracoin (AUR) Definition". globalonlinemony.com. Retrieved May 16, 2024.
  9. ^ "Definition of Auroracoin (AUR)". novax.io. Retrieved May 16, 2024.
  10. ^ "Taking Ethereum beyond the stratosphere". aurora.dev. Retrieved May 16, 2024.
  11. ^ "Auroracoin – A Beginning To A Bright and Colorful Blockchain World". www.gudstory.com. Retrieved May 16, 2024.
  12. ^ Porter, Richard D.; Rousse, Wade (2016). "Reinventing Money and Lending for the Digital Age". Banking Beyond Banks and Money. New Economic Windows. pp. 165–166. doi:10.1007/978-3-319-42448-4_9. ISBN 978-3-319-42446-0.
  13. ^ "As Auroracoin "Airdrop" Approaches, What Does It Mean When A Nation Adopts A Cryptocurrency?". Tech Crunch. March 1, 2014.
  14. ^ Hendrickson, Joshua R.; Hogan, Thomas L.; Luther, William J. (2016). "The Political Economy of Bitcoin". Economic Inquiry. 54 (2): 925–939. doi:10.1111/ecin.12291. S2CID 153540326.
  15. ^ Frosti Sigurjónsson (February 7, 2014). "Auroracoin peningasvindl?". frostis.is (in Icelandic). Retrieved September 2, 2020.

External links[edit]

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