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.
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.
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’.
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.