Singapore’s government-owned investment firm Temasek has not given up on the crypto space despite suffering a huge loss from its investment in the collapsed FTX exchange. An algorithmic currency system that boasts more stability, efficiency and scalability than usual cryptocurrencies was developed by Array, which secured a $10 million investment from Temasek.
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Array allows developers to create decentralized applications (dApps) on its network using smart contracts. Array’s native token is Ara (ARA), which is issued and traded according to a bonding curve smart contract. A bonding curve is a mathematical formula that determines the price and supply of a token based on demand.
Unlike traditional bonding curves that are set up by centralized controllers, Array’s bonding curve is driven by its self-invented AI algorithm, ArrayGo. ArrayGo learns, observes and predicts market actions and adjusts the bonding curve accordingly to maintain stability and prevent risks.
ArrayGo operates independently, without any human or institutional control, and is triggered solely by market actions. This makes Array a groundbreaking project in the decentralized finance (DeFi) space, as it aims to provide a more predictable and reliable asset than common coins like Bitcoin.
What are the use cases of Array?
Array’s algorithmic currency system can be used for various purposes, such as payments, remittances and investments. For example, Array can be used as a medium of exchange for cross-border transactions, as it offers low fees, fast settlement and minimal volatility. Array can also be used as a store of value for long-term investors, as it offers steady growth and protection against inflation. Additionally, Array can be used as a utility token for accessing dApps built on its platform, such as lending, borrowing, trading and gaming.
Why did Temasek invest in Array?
Temasek one of the most active state-backed investors in the crypto space having invested in several prominent projects such as Coinbase, Binance and FTX. However, Temasek’s investment in FTX turned out to be a disaster, as the exchange collapsed in November 2022 due to a series of hacks, lawsuits and regulatory crackdowns.
Temasek wrote off its entire $275 million stake in FTX, which amounted to 0.09% of its $403 billion portfolio as of March 2022. Temasek also suffered reputational damage due to its association with FTX, which was accused of fraud, market manipulation and money laundering.
Despite this setback, Temasek has not lost faith in the potential of crypto and blockchain technology. Temasek has invested $10 million in Array’s second funding round, which is believed to value the company above $100 million. Temasek’s investment shows that it recognizes the innovation and value that Array brings to the table, as well as its vision and team behind it.
Temasek’s investment also signals that it is looking for more stable and secure alternatives to traditional cryptocurrencies, which are often plagued by volatility, scalability and security issues. By investing in Array, Temasek hopes to gain exposure to a new generation of algorithmic currency systems that are powered by AI and smart contracts.
What are the challenges and opportunities for Array?
Array is not the first project to attempt to create an algorithmic currency system based on smart contracts and AI. There have been several similar projects in the past, such as Basis, Ampleforth and Reserve. However, none of them have achieved mainstream adoption or success so far.
One of the main challenges for Array is to prove that its AI algorithm can effectively manage the bonding curve and ensure stability and growth for its token. Array will also have to compete with other established cryptocurrencies and DeFi platforms that have larger user bases and network effects.
Array also has some distinctive advantages that could make it more competitive than its rivals. Array also boasts a technology that is awaiting patent that can achieve millions of transactions per second without losing security or decentralization. Array also claims to have a strong team of experts from various fields such as AI, blockchain, finance and mathematics.
Moreover, Array has the backing of Temasek, which could provide it with valuable resources, connections and credibility in the crypto space. Temasek could also help Array expand into new markets such as Asia-Pacific, where it has a strong presence and influence.