Temasek investment company, owned by the Singapore government, continues to invest in cryptocurrency projects even after losing hundreds of millions of dollars with the collapsed FTX cryptocurrency exchange.
Temasek has invested $10 million in Array, the developer of an algorithmic currency system based on smart contracts and artificial intelligence.
Announcing the news on May 1, Array said the raise is its second round of financing, which is believed to push the company’s valuation to more than $100 million.
New Temasek-backed algorithmic currency system aims to provide a more “stable, efficient and scalable” asset than traditional cryptocurrencies like Bitcoin (BTC). The system is expected to have various uses, such as payments, remittances and investments.
Array’s smart contract platform, ArrayFi, is designed to enable decentralized applications built on top of its network and powered by its proprietary AI algorithm ArrayGo. Based on the binding curve smart contract, ArrayGo operates independently, without any human or institutional control, and is triggered solely by market actions.the firm said.
“In order to ensure that the value of the token remains stable and predictable for investors and traders indefinitely, a traditional peg curve is manually implemented,” the Array team noted in a Medium blog post. The peg curve is implemented in a smart contract that governs the issuance and trading of the native Ara (ARA) token.
According to Array’s first Twitter Space in February, the math of the company’s bonding curve is intended to ensure that Array users are protected against “pump and dump” schemes.
Temasek’s investment in Array comes several months after the Singapore government openly admitted that the firm suffered reputational damage due to its investment in the collapsing cryptocurrency exchange FTX.. In November 2022, Singapore’s Deputy Prime Minister Lawrence Wong argued that Temasek suffered much more than financial losses from investing in FTX.
Temasek, which is wholly owned by the Ministry of Finance but operates independently, was forced to write down its entire $275 million investment in FTX. The amount represented just 0.09% of Temasek’s $403 billion portfolio as of March 2022.
In April, Temasek also participated in a $10 million Series A round for US-based impact verification and intelligence company BlueMark.
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