Temasek invests in algorithmic currency system

Temasek, the government-owned investment firm of Singapore, has recently invested $10 million in Array, a developer of an algorithmic currency system based on smart contracts and artificial intelligence. Array has announced that the funding round marks its second, raising its valuation to over $100 million.

The new Temasek-backed algorithmic currency system is aimed at providing 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, and 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. ArrayGo operates independently, without any human or institutional control, and is triggered solely by market actions. According to a Medium blog post by the Array team, a traditional bonding curve is implemented manually to ensure the value of the token remains stable and predictable for investors and traders indefinitely. The bonding curve is implemented into a smart contract that governs the issuance and trading of the native token Ara (ARA). The smart contract platform also aims to protect Array users against “pump and dump” schemes.

Temasek’s investment in Array comes several months after the Singapore government admitted that the company suffered reputational damage due to investing in the collapsed crypto exchange FTX. In November 2022, Singapore’s Deputy Prime Minister Lawrence Wong argued that Temasek suffered more than just financial losses due to investing in FTX.

Despite suffering significant losses, Temasek continues to invest in cryptocurrency projects. In April, Temasek also participated in a $10 million series A round for the United States-based impact-verification and intelligence firm BlueMark.

Temasek is fully owned by the Ministry of Finance but operates independently. The company was forced to write down its entire $275 million FTX investment, which accounted for just 0.09% of Temasek’s $403 billion portfolio as of March 2022. Despite this loss, Temasek continues to be a major investor in various industries, including technology, healthcare, and financial services.

In conclusion, Temasek’s investment in Array highlights the company’s continued interest in cryptocurrency projects despite significant losses in the past. The new algorithmic currency system developed by Array aims to provide a more stable and efficient asset than traditional cryptocurrencies, with a variety of use cases such as payments, remittances, and investments. With the backing of Temasek, Array’s valuation is set to exceed $100 million, indicating significant potential for growth and development in the future.