Auroracoin (AUR) is a cryptocurrency that was launched in Iceland in February 2014. It was meant to function as an alternative to both Bitcoin and the Icelandic króna. It was created at a time when the Icelandic government was severely restricting the movement of the króna outside the country in response to the 2008 financial crisis.
The creators of the currency are only known by the pseudonym Baldur Friggjar Odinsson. They decided to distribute half of the available supply of Auroracoin to all 330,000 people listed in Iceland’s national ID database through a series of airdrops. The airdrops were meant to bootstrap a network effect and introduce Auroracoin to a national audience.
The first phase of the airdrop started on March 25, 2014, with 31.8 AUR distributed to each claimant. 1,126,674 AUR was distributed to 35,430 claimants during the first phase. AUR was equivalent to $385 USD at the time.
The second phase of the airdrop ran from July 25 to November 24, 2014. Since the value of AUR had dropped significantly against the króna, the developers raised the amount per claim to 318 AUR. This time only 5024 Icelanders participated and about 1.6 million AUR was distributed.
The final phase ran from November 25, 2014, to March 24, 2015. The price of AUR had fallen so sharply that the airdrop amount had to be increased to 636 AUR per claimant. 2600 Icelanders participated and received nearly 1.6 million AUR. The unclaimed pre-mined coins totaled 5,344,628 AUR. They were burned on April 20, 2015, in accordance with the original airdrop plan.
How Auroracoin Works
Auroracoin uses the same proof-of-work Scrypt algorithm as Litecoin. Its block time is 61 seconds and the block reward is 2.5 AUR. The cryptocurrency hasn’t undergone any major changes since it’s launch.
The project is now being managed by the Auroracoin Foundation, which was founded on March 29, 2015, by a group of Icelanders who believe Auroracoin can have a positive impact on the island’s economy. The foundation is mainly focused on the development and adoption of AUR in Iceland.
Core Roles of Auroracoin
– Support the development of AUR and its infrastructure.
– Represent AUR in Iceland.
– Organize marketing campaigns for AUR in Iceland.
– Educate the public about AUR and blockchain technology.
The foundation received a donation of one million AUR from Baldur Fryggjar Odinsson. The tokens will be used to fund the foundation’s goals. Any Icelandic citizen can join the Auroracoin Foundation.
AUR Trading Volume, Price and Market Cap
The total supply of AUR caps at 21,000,000 tokens. 10.5 million tokens were set aside for the airdrops. A total of 5,155,372 tokens were distributed in all three phases and the remaining 5,344,628 tokens were burned. The circulating supply is now 11,328,528 AUR.
AUR joined the market strong in February 2014 and its value rose in leaps and bounds over the next month. Its price peaked on March, 4, 2014, when it reached $96.41 USD with a market cap of over $1 billion USD. The bubble burst in the weeks that followed and its price crashed. It has never recovered.
Buying, Storing and Selling AUR
AUR can only be acquired from a limited number of exchanges. These include Bittrex, Cryptopia, ISX, and Yobit.
The official AUR wallet is the best storage option. It’s available on Windows, OS X, Linux, Android, and Chrome. The developers also recommend the Hive web wallet for iOS and Android or the Coinomi mobile wallet, which is currently only available on Android devices.
Liquidity of AUR
AUR has terrible market liquidity. It is barely trading on the few exchanges that carry it. The Auroracoin Foundation’s efforts to try and revive the project have so far been unsuccessful and AUR hasn’t managed to regain its value since it crashed in 2014. Interested investors should be wary.