Temasek Invests $10M In Algorithmic Currency System Array
Despite suffering financial losses due to its investment in the collapsed crypto exchange FTX, Singapore’s government-owned investment firm Temasek has invested $10 million in Array, the developer of an algorithmic currency system based on smart contracts and artificial intelligence. The investment is part of Array’s second funding round and is believed to bring the firm’s valuation to over $100 million.
The new Temasek-backed algorithmic currency system aims to provide a more “stable, efficient and scalable” asset than traditional cryptocurrencies like #Bitcoin.
The system is expected to have a variety of use cases, including payments, remittances as well as investments.
— Cointelegraph (@Cointelegraph) May 1, 2023
AI Algorithm ArrayGo
Array’s smart contract platform, ArrayFi, is designed to provide a more stable, efficient, and scalable asset than traditional cryptocurrencies like Bitcoin. It enables decentralized applications built on top of its network and driven by its proprietary AI algorithm ArrayGo, which operates independently without any human or institutional control and is triggered solely by market actions. To ensure the value of the token remains stable and predictable for investors and traders indefinitely, a traditional bonding curve is implemented manually. The bonding curve is implemented into a smart contract that governs the issuance and trading of the native token Ara (ARA), according to a Medium blog post by the Array team.
Temasek’s investment in Array is a signal of its continued interest in the cryptocurrency space, despite the reputational damage it suffered due to investing in FTX. In November 2022, Singaporean Deputy Prime Minister Lawrence Wong admitted that Temasek suffered more than just financial losses due to investing in FTX. The investment firm was forced to write down its entire $275 million FTX investment, which accounted for just 0.09% of its $403 billion portfolio as of March 2022.
Temasek’s Portfolio
Temasek’s investment in Array comes as the investment firm continues to diversify its portfolio. In April, it participated in a $10 million Series A round for the United States-based impact-verification and intelligence firm BlueMark. Array is also gaining traction in the market, with its algorithmic currency system being seen as a potential solution to the volatility of traditional cryptocurrencies like Bitcoin.
Temasek’s investment in Array is a significant endorsement of the company and its technology. It highlights the potential of algorithmic currency systems to revolutionize the cryptocurrency market and offer more stable and predictable assets for investors and traders. The investment also signals Temasek’s continued interest in the cryptocurrency space and its commitment to diversifying its portfolio.
