FTX investor Temasek pours $10 million into the algorithmic currency system Array
Singapore’s state-owned investment firm Temasek continues to invest in cryptocurrency projects even after losing hundreds of millions of dollars on the collapsed FTX cryptocurrency exchange.
Temasek has invested 10 million dollars 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 funding, which is expected to bring the firm’s valuation to more than $100 million.
The new Temasek-backed algorithmic currency system aims to provide a more “stable, efficient and scalable” resource than traditional cryptocurrencies such as Bitcoin (BTC). The system is expected to have a number of uses, including payments, remittances and investments.
Array’s smart contract platform, ArrayFi, is designed to enable decentralized applications built on top of the network and powered by the proprietary AI algorithm ArrayGo. Based on the bonding curve smart contract, ArrayGo operates independently without any human or institutional control and is triggered solely by market actions, the firm said.
“To ensure that the value of the token remains stable and predictable for investors and traders indefinitely, a traditional bond curve is manually implemented,” the Array team noted in a Medium blog post. The binding curve is implemented in a smart contract that governs the issuance and trading of the original token Ara (ARA).
According to Array’s first Twitter Space conducted in February, the company’s bond curve math aims to ensure Array users are protected from “pump-and-dump” schemes.
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Temasek’s investment in Array comes months after the Singapore government openly admitted that the company suffered reputational damage from investing in the collapsed crypto exchange FTX. In November 2022, Singapore’s Deputy Prime Minister Lawrence Wong claimed that Temasek suffered much more than just financial losses due to investment in FTX.
Temasek, which is wholly owned by the Ministry of Finance but operates independently, was forced to write down its entire $275 million FTX investment. 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 firm BlueMark.
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