The Singapore government-owned investment firm Temasek remains undeterred in its commitment towards cryptocurrency projects, despite losing hundreds of millions of dollars to the now-defunct FTX crypto exchange. In a recent development, Temasek has invested $10 million in Array, the creator of an innovative algorithmic currency system grounded in smart contracts and artificial intelligence technology. This move comes after Array announced on May 1 that a second funding round had pushed the company’s valuation past the $100 million mark.
Array’s latest currency system, backed by Temasek, strives to be a more “stable, efficient and scalable” alternative to conventional cryptocurrencies like Bitcoin. The technology has the potential to be applied in numerous use cases, including payments, remittances, and investments. Array’s smart contract platform, ArrayFi, facilitates the development of decentralized applications based on its network and powered by the proprietary AI algorithm ArrayGo. The bonding curve smart contract governs ArrayGo as an independent unit, uncontrolled by humans or institutions, and is set in motion purely by market forces.
To guarantee the value of the token remains consistent and predictable for investors and traders over an indefinite period, a traditional bonding curve has been manually implemented by the Array team. The smart contract that defines the issuance and trading of Array’s native token Ara (ARA) incorporates the bonding curve. Array’s bounding curve mathematical framework, revealed during the company’s first Twitter Space held in February, seeks to shield users from “pump and dump” schemes.
This new investment by Temasek into Array takes place after Singapore’s government acknowledged the reputational harm the company had suffered due to its investment in the collapsed FTX crypto exchange. Deputy Prime Minister Lawrence Wong asserted in November 2022 that the financial losses Temasek endured from FTX were only part of the overall damage. Temasek, which is solely owned by the Ministry of Finance but operates autonomously, had to write off its entire $275 million FTX investment. This figure represented only 0.09% of Temasek’s $403 billion portfolio as of March 2022.
Additionally, in April, Temasek contributed to a $10 million series A round for BlueMark, a US-based impact-verification and intelligence company. Temasek’s relentless support for new crypto initiatives, even after the massive FTX loss, highlights the potential they see in these projects. However, the risks associated with developing and investing in emerging technologies remain evident, as showcased by the FTX debacle. Balancing the pursuit of innovation with cautious decision-making will be paramount in shaping the future of the crypto industry.
Source: Cointelegraph
