What Is Auroracoin (AUR)?
Auroracoin (AUR) is a peer-to-peer cryptocurrency created in Iceland. This cryptocurrency doesn't operate in tandem with the banking system and has its own value. Like other cryptocurrencies, It can be used as an alternative to traditional payment methods or as a form of investment. Payments made in AUR can be made anonymously and securely, and transactions are stored on a public ledger. Originally launched in 2014, its value crashed shortly after its launch. It was revived the following year by a group of developers.
Key Takeaways
- Auroracoin is a peer-to-peer cryptocurrency.
- It was founded in Iceland in response to the 2008 financial crisis.
- Auroracoin launched in 2014 with some fanfare, but it was deemed a failure soon after.
- The currency was revived in 2015 by the Auroracoin Foundation.
- AUR trades on FreiExchange and YoBit.
Auroracoin should not be confused with the cryptocurrency token "Aurora" (AOA).
Understanding Auroracoin (AUR)
Cryptocurrencies are digital currencies based on a network. They can be used for secure online paymentswithout having to use third-party payment systems. This type of currency can be mined or purchased from exchanges. Individuals can also trade them. Bitcoin is the most common and most popular cryptocurrency on the market.
Auroracoin is another currency available on the market. AUR was created in 2014 by a pseudonymous creator named Baldur Friggjar Óðinsson in Iceland. The goal was to use it as a decentralized currency after the 2007-2008 financial crisis.
The currency operates independently of any banking system with its own value. Originally intended to serve as a mechanism for cross-border transfers in the local economy, It can be used to trade and conduct daily transactions, including purchases.
AUR is based on the Scrypt algorithm and is essentially a clone of Litecoin. AUR is available for purchase or trade on two cryptocurrency exchanges: FreiExchange and YoBit. Like other cryptocurrencies, traders must trade and invest in Auroracoin by getting a crypto wallet. The value of AUR on May 31, 2023, was $0.0203.
History of Auroracoin
The Financial Crisis
Iceland’s economy suffered under the collapse of its banking system during the financial crisis. To stem the outflow of capital, the federal government instituted controls that prevented its citizens from taking foreign currencyout of the country. Icelanders were forced to turn over all foreign currency earned to the country's central bank in the five years after the financial crisis.
Much like Bitcoin, whose creation is widely considered to be a reaction to bank bailouts by the federal government, Auroracoin also positioned itself as an alternative to government-controlled currencies. The creators believed that citizens weren't completely free to engage in international trade or invest in business abroad. The coin’s creators thought the overall effect of the government restrictions was crippling the local economy.
Auroracoin's creator believed that the people were not completely free to engage in international trade or invest in businesses abroad. The coin’s creators thought the overall effect of the government restrictions was crippling the local economy.
Cryptocurrencies were under development for many years before the global financial crisis. The behavior of investment banks and institutional investors only accelerated the growing dissatisfaction with fiat currencies and the way they are managed.
Launch and Crash of Auroracoin
AUR was launched in February 2014. Half of its tokens were pre-mined and distributed to the citizens of Iceland in three phases:
- During the first phase in March 2014, each citizen of Iceland received 31.8 AUR.
- The distributed amount went up to 318 coins in the second phase and was doubled to 636 coins in the third phase.
- The remaining 50% of the coins were destroyed. Iceland’s national ID system was used to conduct the free airdrop.
There was a rumor ahead of the airdop that the national ID system was involved in facilitating the distribution of coins among citizens. This gave the impression that the token was government-backed, driving the value up significantly. Some referred to this as an early failed airdrop experiment while others zeroed in on AUR as an early example of pumping and dumping.
Many coin recipients cashed out their tokens, resulting in a massive crash in price in the weeks following the airdrop. The coin's value lost as much as 80% within a 24-hour period. AUR was deemed a failed experiment.
Revival
The currency was revived in 2015 by a group of developers under the Icelandic Blockchain Foundation. According to the website, this team consists of volunteers who are responsible for its development and "progress in Iceland." These individuals expanded the purpose of AUR to include daily transactions.
What Was the Original Purpose of Auroracoin?
Auroracoin was intended to be used as a replacement currency for Iceland after the financial market crashed in 2008. Ultimately, the cryptocurrency never caught on as planned and eventually joined the thousands of other failed crypto attempts.
How Can I Buy Auroracoin?
You can buy Auroracoin on a few decentralized exchanges. YoBit and FreiExchange list AUR.
Is AOA Coin a Good Investment?
Auroracoin and Aurora (AOA) are two different coins. AUR has minimal trading volume; AOA has some trading volume but is worth much less than AUR. Whether they are good investments or not depends on your investing goals, market outlook, and risk tolerance. It's best to speak to a financial advisor before purchasing AUR or AOA.
The Bottom Line
Cryptocurrencies are alternative currencies. Bitcoin was the first to hit the market. Others followed suit trying to mimic its success, including Auroracoin. Created in Iceland, it was meant to be a decentralized alternative to the country's own currency during the financial crisis. But mishaps led to its demise. A team of developers revived the currency with the hope of boosting its presence in the market. Whether a failed experiment or a cautionary tale of a crypto scam in plain sight, Auroracoin seems to have lost its momentum and interest from investors and the general public.
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