Auroracoin Airdrop: Flop?

Auracoin Airdrop

Auracoin Airdrop

The Auroracoin Airdrop took place on March 25th with the result in line with what was predicted by CryptoCoinsNews – A dramatic price drop.  The Auroracoin Airdrop was a method of distributing 10.5 million Auroracoins to about 330,000 Icelanders or 31.8 Aurorcoins each.    In some ways, the idea is quite good.  Crypto coins could operate as a national currency.  If they did, we would see how adoption by a nation could cause greater stability in price and also greatly increase the value of the coins.  As such Auroracoin gained much popularity, and at one point its’ market cap was higher than that of Litecoin.  In the CryptoCoinsNews article, we did point out that these market cap estimates were exaggerated because the premine was not yet distributed.   The final result of the airdrop has been less than ideal with some calling it a scam, dramatic price falls, and finally a ‘fork’ that, though planned, caused a lot of fear among those less in the know.

Regarding the scam accusations on Bitcointalk it was theorized in a post that:

“The airdrop was just a premeditated smokescreen designed to provide the developers an opportunity to launder their stash of premined coins.”

Endless accusations and counterclaims appear in the thread.

Airdrop Flop?

The Auroracoin site claims 7% of the Airdrop coins are currently in circulation, which throws a wrench into most Auroracoin premine conspiracy theories.  This means that, despite whatever action has happened in the exchange rate, some real Iceland natives have been introduced to Digital Currency through Auroracoin.

Check out this twitter conversation between people in Iceland that just discovered they could buy bacon with their Auroracoin.

It will be interesting to see what percent of the coins are ever claimed by the Icelanders.  If there is a substantial distribution of coins to the Icelandic people then that would represent something that other coins have not yet achieved.

AuroraCoin Price Drop

AuroraCoin Price Drop

The price of Auroracoin has fallen from a peak price of nearly 0.1 Bitcoins to a current value of  less than 0.004 Bitcoins.  That’s a 96% decline if you are counting. Cryptsy CEO Paul Vernon stated:

“It’s just market driven, The fact that there is a drop is because people are getting rid of the coins.”

Sadly the Icelanders will not be able to cash in at the peak value.  If the price goes much lower, it might not be worth it to cash in at all.  Nevertheless, at these prices the coin is cheap.  This price fall scenario was predicted but what will happen next?  Very optimistically, some Icelanders may choose to hold their coins, price will stabilize, and the coins might be used at some point.

The BitcoinTalk forum claims there have been several hard forks that were caused by a 51% attack.  The fork is causing problems as blocks are no longer being found at the correct rate.  These problems just increase the uncertainty and confusion surrounding the release.    The Aurarocoin community is currently trying to resolve this problem by increasing mining power on the network.  Most likely the forks can be resolved and price may hopefully hit a minimum somewhere above ZERO.

The Case For Digital Currencies In Iceland

A story of compelling merit almost gets left out due to all the drama and charges of scamming.  Iceland has been a country ravaged by the central banking system, and in many ways represents the cause of all decentralized currencies.  In the next chart we can see how the Icelandic currency the Krona has fallen in value due to central bank printing.  This printing represents what we are constantly told are necessary ‘monetary controls’.

 

Icelandic Dropping Krona

Icelandic Dropping Krona

Due to central bank printing the Iceland Krona has been devalued relative to gold by more than 99.99% in less than 50 years.  The central bankers and their corporate publications argue that Bitcoin has deficiencies as a currency, but it is hard to imagine how it could not be an improvement in comparison to the results of their methodologies.  In fact if a nation adopted Bitcoin that would add great value and stability to the currency, but the banksters cronies never seem to think of that argument.  Auracoin offers Icelanders a distributed application (Dapp) that may help to save them from capital controls which force them to hand over foreign currency and reduces their freedom to engage in international trade.

We often see media pieces or supposed studies of Bitcoin that  say things like it is ‘problematic’ that Bitcoin does not allow for monetary controls.   In other words, these publications argue that centralized printing is necessary to constantly adjust inflation to some supposed centrally managed ideal.  None, of this analysis, if you want to call it that, ever considers the staggering harm caused by these very same central bankers.  Even if the central bank printing could work in the ideal, which it never does, it is prone to substantial abuses and often becomes a method of theft from poor to rich or to spend on nefarious government programs such as NSA snooping, government paid trolls, and drone attacks against innocent civilians.

Forums Auroracoin Airdrop: Flop?
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  • #38663
    Avatar of David ParkerDavid Parker
    233 Posts

    The Auroracoin Airdrop took place on March 25th with the result in line with what was predicted by CryptoCoinsNews – A dramatic price drop.  The Auror
    [See the full post at: Auroracoin Airdrop: Flop?]

    #38664
    SHA256
    0 Posts

    Gordian Knot Theory Redux:

    Has it occured to anyone that there is no such thing as perfectly “sound” money, not gold, not silver, not even our nascent digital currencies?

    If you lucked out on some pre-2012 BTC before it went hyperbolic good for you, if not read on.

    While I have been aware of the inevitability (and possibilities) of digital currencies representing the next stage in the evolution of what money is, at this point, I really don’t see much difference between the behavior of central bankers and the assorted miners of crypto-currencies, or for that matter the various heads of pilfered trading exchages, MtGox, et al.
    (I’m pretty sure if Helicopter Ben was a 24-year-old with some coding experience, he would either be producing a coin and or at least have an Asic rig in his bedroom closet humming along–ditto for Yellen.)

    Everything can be manipulated and everyone appears indictable to an extent. It is too bad that we have to wait for a Cyprus-like event to get serious about capital controls, but then again, the Argentine currency crisis, or Venezuelan political crisis for that matter hardly registered in the digital currency community. And what of Ukraine? Nothing.

    The Aurora coin launch was truly sad. I really wanted to see it adopted given the Krona’s devaluation. If ever there were a nation that could use the benefits of a digital currency in the wake of the 2008 banking crisis while offering a glimpse of the future through its petri dish-sized economy given its proximity to European markets to test it upon, Iceland was it.

    Some more knotty thoughts:

    BTC’s creator(s) is anonymous, and as such BTC will always be deeply suspect. Repeat that reality to yourselves coin people. The general population will always distrust BTC for this reason–PERIOD. Pre-mining and the like is also “unsound.” Forget Silk Road and money laundering, the main complaint is lack of transparency as it relates to BTC’s origination point, not any black hat utility. (Everyone knows that the history of crime has made generous use of whatever currency is available, including the dollar–next.) Wide adoption of digital currency, especially given the price volatility, is still far off. Ten years? Fifteen?

    Does anyone really consider the present viability of over 200 crypto-currencies as anything other than a digital mining grab at relatively easy below-the-radar money?

    (And I’m really tired of hearing about all the types of antebellum USA fiat-like currencies as an analogy to our current digital predicament. Where is the digital currency version of the greenback, because it’s not BTC, folks. I’m also sure the soon-to-be-launched DACS will offer even larger-sized digital nonsense, including what appears to be a weird type of non-centralized, quasi-fascist network –and probable corporate-sized thefts– than what this first generation of cryptos offered despite the pronouncements to the contrary by their crowd funded, “Turing complete” originators, or the waiving of “white papers” suggesting the dawn of a new digital [game] mankind by 19-year-old semi-autistics. Isn’t there a version of Moore’s law as it concerns brain neurons and the capacity for self delusion? Robert Trivers, please work on that one –we need it fast, like yesterday.)

    What is even more laughable is that some of these coin creators actually believe some of the anarcho-libertarian hardliners and their beliefs, which incredibly, appear as transgressive as the deeply transgressive powers that be. Is there a Guy Fawkes coin yet?

    (Word up: Despite their heartfelt intentions and righteousness, unless the crypto-currency gang ultimately have jets, drones, tanks, guns, bombs and NSA-type organizations behind them, they are going nowhere fast except to be co-opted by deep pocket payment system entrepreneurs, trading exchanges, newly created digital currency hedge funds–and the IRS. Don’t forget the hungry lawyers either.)

    At best, all we can hope for is “sounder” examples of money, but what we currently have is mayhem, make no mistake. BTW, I never hear anyone in the crypto scene consider the reality of a rogue nation producing the most sound currency? How about that possibility? What if North Korea or nasty authoritarian state (or more brutal future Nazi-like country) produced a perfectly sound and transparent coin? What would happen then? (But then again, the libertarian thrust of the crypto scene generally indicts all governments anyway, including the NSA led USA. I guess i’ll save that scenario for my screenplay.)

    The mostly naive crypto crowd apparently doesn’t fully realize that the present digital currency morass plays perfectly into the hands of the status quo, goverment regulators, NSA, etc. The nation-state lives on. (What is the possibility that Satoshi Nakamoto was created by NSA along with the BTC source code and then in turn used the tech whiz kids to further digital currency? A post dollar collapse environment featuring digital currency would have been unwittingly developed and ushered in by the techies–“tools.”

    It appears to be an environment that will eventually create a Hobbesian trap producing not the hoped for compliance to regulation, but, unfortunately, different forms of economic cyberterrorism. A DDoS attack, in case you haven’t noticed, is one such form.

    And of course, what are you left with at the end of the proverbial digital day as you stare into your computer screen at your dwindling online bank account?

    Speculate or die…again.

    #38665
    superflapjack
    0 Posts

    “Air Drop” = Price drop and when will people learn that free money is not free.This kind of silliness helps justify the pump and dump mentality. No more pre-mined, more green or bonus BS.

    #38666
    RS
    0 Posts

    There is actually likely to be a very big demand for less controlled expensive payment and moeny transfer solutions but bitcoin isn’t a perfect fit. It slow and it is expensive to process transactions, the amount of money is fixed in real terms not relative to some actual commodity.
    Say for instance we invented the bicMac coin, one coin equals one bic mac, easy good for payment and everyone knows the value of the coin. If you can make twice as fast you get twice as many bicmacs. But the current bitcoin is very different and is a poor payment currency for bicmacs.
    Implementing bicmac coins doesn’t require rocket science, in real life it could be implemented by printing small pieces of paper with serial numbers. In the digital world implementation is more difficult because a coin could potentially be double spent, however the current crop of bitcoin algortihms are not very good for implementing a bicmac coin.
    If crypto currency is going to be big it needs to change, developers of crypto currerncy need to start asking themselves how can we implement a bicmac coin not how can we create a libertarian revolution and free ourselves from the state.

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About The Author

Avatar of David Parker
Director of CCN

Director of CryptoCoinsNews. Contact me by sending an email to david.parker (at) cryptocoinsnews.com.