Observations from Auroracoin’s launch

Auroracoin’s airdrop to all Icelanders began Monday night/Tuesday morning, and there’s already enough data to start drawing conclusions and maybe speculating a little.

First, to catch everyone up: Auroracoin is a cryptocurrency designed specifically for Icelanders, who have seen their fiat currency plummet in value over a couple of generations now. It’s based on Litecoin, and at midnight on March 25 (local time), a premined stash became available to all residents of Iceland.

The haul works out to about 31.8 AUC for each of Iceland’s roughly 330,000 citizens, and claiming your share is available through the coin’s website.



Questions have surrounded Auroracoin’s airdrop for months. Would Icelanders claim their coins? If they did, would they sell them for fiat immediately?

Forbes reported on the airdrop just hours before it began, and at the time of their reporting, Auroracoin had the fourth highest market cap among all cryptocurrencies, and 1 AUC was trading for about 0.02 BTC or $11.60.

That meant each Icelander stood to gain just short of $369 in the airdrop.



Using data from Cryptsy, it does appear there was significant movement in the hours before the airdrop began. About five hours before the airdrop’s initiation, the price fell from about 0.02 BTC to 0.016 BTC.

That trend continued for a few hours, marked by a noticeable spike in trading just before 22:00 Iceland time, when more than 4800 AUC were traded in a 15-minute span. The price eventually bottomed out at 0.008 BTC an hour after the airdrop began.

Since then, the price has rebounded, and trading volumes have stabilized to some degree.

At the time of writing, Auroracoin.org reports that 3.77% of the premined coins have been claimed, and the price has rebounded somewhat to 0.012 BTC.


The Idea Behind Auroracoin

Iceland’s economy crashed hard in 2008 thanks in large part to reckless finances, as was the case in many countries. Even now, though, the country places strict capital controls, making it hard to move money in and out of Iceland.

Here is what Auroracoin’s pseudonymous creator, Baldur Friggjar Odinsson, writes:

“This means that the Icelandic economy is slowly bleeding. The people of Iceland are being sacrificed at the altar of a flawed financial system, controlled by an elite that made astronomical bets supported by the government on behalf of the people and ultimately at the expense of the people.”

We will keep following Auroracoin to see whether it catches on in Iceland. Keep following CoinTelegraph for up-to-the-minute updates.




Follow us on Facebook