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{{Short description|Cryptocurrency associated with Iceland}}
{{Use mdy dates|date=December 2015}}
{{Use mdy dates|date=December 2015}}
'''Auroracoin''' (code: AUR, symbol: [[Fehu|ᚠ]]) is a [[peer-to-peer]] [[cryptocurrency]] launched in February 2014 as an Icelandic alternative to [[bitcoin]] and the [[Icelandic króna]].<ref name=wsj20140305/><ref name=ibt20140304/> The unknown creator or creators use the pseudonym Baldur Friggjar Óðinsson (or Odinsson).<ref name=wsj20140305/><ref name=ibt20140304/> They stated that they planned to distribute half of auroracoins that would ever be created to all 330,000 people listed in [[National identification number#Iceland|Iceland's national ID]] database beginning on March 25, 2014, free of charge, coming out to 31.8 auroracoins per person.<ref name=wsj20140305/><ref name=ibt20140304/>


{{Infobox currency
Auroracoin was created as an alternative currency to address the government restrictions on Iceland's króna, in place since 2008, which severely restricts movement of the currency outside the country.<ref name=wsj20140305/> Iceland's Foreign Exchange Act also prohibits the foreign exchange of bitcoins from the country, according to a government minister.<ref name=mbl20131219/> Auroracoin was the first of a number of country-based cryptocurrencies.<ref name="International Business Times">{{cite news | first=David | last=Gilbert |url=http://www.ibtimes.co.uk/cryptocurrency-news-round-aphroditecoin-woos-miners-auroracoin-airdrop-nears-1441618 |title=Cryptocurrency News Round-Up: Aphroditecoin Woos Miners as Auroracoin Airdrop Nears |publisher=International Business Times |date=March 1, 2014}}</ref>
| name = Auroracoin
| image_1 = Auroracoin.svg
| iso_code = <!-- no ISO 4217 code -->
| symbol = ᚠ{{citation needed|date=April 2024}}
| date_of_introduction = 25 March 2014
| using_countries = [[Iceland]] (de-facto)
⚫
}}

'''Auroracoin''' ([[ISO 4217#Cryptocurrencies|Abbreviation]]: '''AUR'''; [[Currency symbol|sign]]: '''[[Fehu|ᚠ]]''') is a [[peer-to-peer]] [[cryptocurrency]] launched in February 2014 as an Icelandic alternative to [[bitcoin]] and the [[Icelandic króna]].<ref>{{cite news |author1=Samúel Karl Ólason |title=Auroracoin dreift til allra Íslendinga |url=https://www.visir.is/g/20141816160d |access-date=2 September 2020 |work=[[Vísir.is]] |date=6 February 2014 |language=is |archive-date=August 26, 2021 |archive-url=https://web.archive.org/web/20210826155804/https://www.visir.is/g/20141816160d |url-status=live }}</ref><ref name="wsj20140305">{{cite news | title=Auroracoin already third-biggest cryptocoin–and it's not even out yet | url=https://blogs.wsj.com/moneybeat/2014/03/05/auroracoin-already-second-biggest-virtual-currency-and-its-not-even-out-yet/ | first=Michael J. | last=Casey | work=(Blog) The Wall Street Journal | date=March 5, 2014 | access-date=August 4, 2017 | archive-date=November 11, 2020 | archive-url=https://web.archive.org/web/20201111150507/https://blogs.wsj.com/moneybeat/2014/03/05/auroracoin-already-second-biggest-virtual-currency-and-its-not-even-out-yet/ | url-status=live }}</ref> The unknown creator or creators use the pseudonym Baldur Friggjar Óðinsson (or Odinsson).<ref name="wsj20140305" /> They stated that they planned to distribute half of auroracoins that would ever be created to all 330,000 people listed in [[National identification number#Iceland|Iceland's national ID]] database beginning on March 25, 2014, free of charge, coming out to ᚠ31.8 per person.<ref>{{cite news |author1=Karl Ólafur Hallbjörnsson |title=Nýr rafeyrir að nafni Auroracoin er öllum Íslendingum fáanlegur frá miðnætti |url=https://www.visir.is/g/2014140329388 |access-date=2 September 2020 |work=[[Vísir.is]] |date=24 March 2014 |language=is |archive-date=March 12, 2022 |archive-url=https://web.archive.org/web/20220312092718/https://www.visir.is/g/2014140329388 |url-status=live }}</ref><ref name="wsj20140305" />

Auroracoin was created as an alternative currency to address the government restrictions on Iceland's króna, in place since 2008, which severely restricts movement of the currency outside the country.<ref name="wsj20140305" />


==History==
==History==
It has been suggested that 'in many ways, Iceland could be seen as an ideal place for a virtual currency' on account of the limited use of cash, extensive familiarity with electronic finance, and extensive interest in Bitcoin in Icelandic society, coupled with the long-term instability of the króna.<ref>Richard D. Porter and Wade Rousse, 'Reinventing Money and Lending for the Digital Age', in ''Banking Beyond Banks and Money: A Guide to Banking Services in the Twenty-First Century'', ed. by Paolo Tasca, Tomaso Aste, Loriana Pelizzon and Nicolas Perony ([n.p.]: Springer, 2016), pp. 145-80 (p. 165-66); DOI 10.1007/978-3-319-42448-4_9</ref>
It has been suggested{{By whom|date=December 2022}} that 'in many ways, Iceland could be seen as an ideal place for a virtual currency' on account of the limited use of cash, extensive familiarity with electronic finance, and extensive interest in Bitcoin in Icelandic society, coupled with the long-term instability of the króna.<ref>{{cite book|doi=10.1007/978-3-319-42448-4_9|chapter=Reinventing Money and Lending for the Digital Age |title=Banking Beyond Banks and Money |series=New Economic Windows |year=2016 |last1=Porter |first1=Richard D. |last2=Rousse |first2=Wade |pages=165–166|isbn=978-3-319-42446-0 }}</ref>

It was originally based on [[Litecoin]] with a [[scrypt]] [[proof-of-work]] [[algorithm]], but on March 8, 2016 a new codebase was released using a multi-algo architecture based on DigiByte and pioneered by Myriadcoin.


===Airdrop===
===Airdrop===
By using the [[Kennitala]] national identification system to give away 50% of the total issuance of Auroracoins to the population of Iceland, a process dubbed the "[[Airdrop (cryptocurrency)|airdrop]]", the developer hoped to bootstrap a [[network effect]] and introduce cryptocurrency to a national audience.<ref name="Tech Crunch">{{cite web |url=https://techcrunch.com/2014/03/01/as-auroracoin-airdrop-approaches-what-does-it-mean-when-a-nation-adopts-a-cryptocurrency/ |title=As Auroracoin "Airdrop" Approaches, What Does It Mean When A Nation Adopts A Cryptocurrency? |publisher=Tech Crunch |date=March 1, 2014}}</ref>
The developers used the [[Kennitala]] national identification system to give away 50% of the total issuance of Auroracoins to the population of Iceland, a process known as an [[Airdrop (cryptocurrency)|airdrop]], hoping to bootstrap a [[network effect]] and introduce cryptocurrency to a national audience.<ref>{{cite web |url=https://techcrunch.com/2014/03/01/as-auroracoin-airdrop-approaches-what-does-it-mean-when-a-nation-adopts-a-cryptocurrency/ |title=As Auroracoin "Airdrop" Approaches, What Does It Mean When A Nation Adopts A Cryptocurrency? |publisher=Tech Crunch |date=March 1, 2014 |access-date=June 25, 2017 |archive-date=November 3, 2021 |archive-url=https://web.archive.org/web/20211103100712/https://techcrunch.com/2014/03/01/as-auroracoin-airdrop-approaches-what-does-it-mean-when-a-nation-adopts-a-cryptocurrency/ |url-status=live }}</ref>

Phase 1 of the airdrop began on March 25, 2014, with 31.8 AUR being distributed to each claimant. With a USD value of $12.11 per coin on March 24, Icelanders were receiving the equivalent of $385. Price quickly began to fall with the broad issuance of coins. Within one day of the Airdrop launch, approximately 281,000 coins had been distributed and price had dropped nearly 50% versus bitcoin. When phase one of the airdrop had completed on July 24, 2014 it was estimated that 1,126,674 AUR had been disbursed among 35,430 claimants, out of a total Iceland population of 323,002 (2013).

The second phase of the airdrop ran from July 25 to November 24, 2014.With the value of AUR having fallen dramatically against the krona the amount per claim was increased to 318 coins. About 5024 claims totalling almost 1.6 million coins were made.

The final phase of the airdrop took place from November 25, 2014 to March 24, 2015 with nearly 1.7 million coins being claimed by more than 2600 Icelanders. By this time the price had fallen so sharply that the payout had increased to 636 coins per recipient.<ref>http://blockexplorer.auroracoin.eu/claims.3.html</ref>
On April 22, 2015 in accordance with the original airdrop plan, the 5,344,628 unclaimed pre-mined coins were verifiably 'burned' or made inaccessible by being sent to the address AURburnAURburnAURburnAURburn7eS4Rf.

===Foundation===
The Auroracoin Foundation was launched on March 29, 2015 to spearhead further technical development and promote the use of Auroracoin in Iceland. The Foundation was granted 1,000,000 AUR by the developer to help fund this work.<ref name="Auraráð">{{cite web |url=http://aurarad.is/english/ |title=General information about Auraráð in English |publisher=Auroracoin Foundation}}</ref>


==Controversy==
==Controversy==
As of 2015, the legal status of cryptocurrencies in Iceland was unclear, though the Auroracoin airdrop involved government approval of Odinsson's use of the national database of citizens, [[Íslykill]].<ref>Joshua R. Hendrickson, Thomas L. Hogan and William J. Luther, 'The Political Economy of Bitcoin', ''Economic Enquiry'', 54 (2016), 925-39, doi:10.1111/ecin.12291.</ref> Some Icelandic politicians have taken a negative view of Auroracoin. During a parliamentary debate on March 14, 2014, [[Member of Parliament|MP]] Pétur Blöndal, vice-chair of the Parliament's [[Economic Affairs and Trade Committee (Iceland)|Economic Affairs and Trade Committee]] (EATC), emphasized that potential tax evasion through the use of Auroracoin could impact Iceland's economy. He also said that the public should realize that Auroracoin "is not a recognized currency since no-one backs the medium".
As of 2015, the legal status of cryptocurrencies in Iceland was unclear, though the Auroracoin airdrop involved government approval of Odinsson's use of the national database of citizens, [[Íslykill]].<ref>{{cite journal|doi=10.1111/ecin.12291|title=The Political Economy of Bitcoin |year=2016 |last1=Hendrickson |first1=Joshua R. |last2=Hogan |first2=Thomas L. |last3=Luther |first3=William J. |journal=Economic Inquiry |volume=54 |issue=2 |pages=925–939 |s2cid=153540326 |hdl=10.1111/ecin.12291 |hdl-access=free }}</ref> Some Icelandic politicians have taken a negative view of Auroracoin. During a parliamentary debate on March 14, 2014, [[Member of Parliament|MP]] Pétur Blöndal, vice-chair of the Parliament's [[Economic Affairs and Trade Committee (Iceland)|Economic Affairs and Trade Committee]] (EATC), emphasized that potential tax evasion through the use of Auroracoin could impact Iceland's economy. He also said that the public should realize that Auroracoin "is not a recognized currency since no-one backs the medium".{{Citation needed|date=September 2020}}


MP Frosti Sigurjónsson, a member of the ruling [[Progressive Party (Iceland)|Progressive Party]] and Chairman of the EATC, suggested in a blog post on his website that there is evidence that Auroracoin is an illegal financial "scam".
MP [[Frosti Sigurjónsson]], a member of the ruling [[Progressive Party (Iceland)|Progressive Party]] and Chairman of the EATC, suggested in a blog post on his website that there is evidence that Auroracoin is an illegal financial "scam".<ref>{{cite news |author1=Frosti Sigurjónsson |title=Auroracoin peningasvindl? |url=https://frostis.is/auroracoin-peningasvindl/ |access-date=2 September 2020 |work=frostis.is |date=7 February 2014 |language=is |archive-date=August 9, 2020 |archive-url=https://web.archive.org/web/20200809021426/https://frostis.is/auroracoin-peningasvindl/ |url-status=live }}</ref>

Óðinsson said that "(parliament) can make it illegal to own or trade Auroracoin, however, they will never be able to control such a decentralized system, or stop Icelanders from using the currency, without turning Iceland into a police state."

Between its peak of around 0.1 BTC and November 26, 2017, Auroracoin's value fell to 0.00008027 BTC.


==References==
==References==
{{reflist | refs=
{{reflist}}

<ref name=ibt20140304>{{cite news | title=What is Auroracoin? Icelandic cryptocurrency passes Litecoin with $1&nbsp;billion valuation | first=Alistair | last=Charlton | date=March 4, 2014 | work=International Business Times | url=http://www.ibtimes.co.uk/what-auroracoin-icelandic-cryptocurrency-passes-litecoin-1-billion-valuation-1438833 }}</ref>

<ref name=wsj20140305>{{cite news | title=Auroracoin already third-biggest cryptocoin–and it's not even out yet | url=https://blogs.wsj.com/moneybeat/2014/03/05/auroracoin-already-second-biggest-virtual-currency-and-its-not-even-out-yet/ | first=Michael J. | last=Casey | work=(Blog) The Wall Street Journal | date=March 5, 2014 }}</ref>

<ref name=mbl20131219>{{cite news | title=Höftin stöðva viðskipti með Bitcoin [Controls suspend trading in Bitcoin] | work=mbl.is | publisher=Morgunblaðsins | language=Icelandic | date=December 19, 2013 | url=http://www.mbl.is/vidskipti/frettir/2013/12/19/hoftin_stodva_vidskipti_med_bitcoin/ }}</ref>


⚫
}}


==External links==
==External links==
{{Portal|Money}}
* [http://aurarad.is/ Auroracoin Foundation official website]
* [http://aurarad.is/ Auroracoin Foundation official website]
* [http://auroracoin.is/ Auroracoin community site]


{{Cryptocurrencies}}
{{Cryptocurrencies|state=expanded}}


[[Category:Cryptocurrencies]]
[[Category:Cryptocurrency projects]]
[[Category:Economy of Iceland]]
[[Category:Economy of Iceland]]
[[Category:Currency introduced in 2014]]
[[Category:Currencies introduced in 2014]]

Latest revision as of 21:18, 6 November 2024

Auroracoin
Unit
Symbolᚠ[citation needed]‎
Demographics
Date of introduction25 March 2014
User(s)Iceland (de-facto)

Auroracoin (Abbreviation: AUR; sign: ᚠ) is a peer-to-peer cryptocurrency launched in February 2014 as an Icelandic alternative to bitcoin and the Icelandic króna.[1][2] The unknown creator or creators use the pseudonym Baldur Friggjar Óðinsson (or Odinsson).[2] They stated that they planned to distribute half of auroracoins that would ever be created to all 330,000 people listed in Iceland's national ID database beginning on March 25, 2014, free of charge, coming out to ᚠ31.8 per person.[3][2]

Auroracoin was created as an alternative currency to address the government restrictions on Iceland's króna, in place since 2008, which severely restricts movement of the currency outside the country.[2]

History

[edit]

It has been suggested[by whom?] that 'in many ways, Iceland could be seen as an ideal place for a virtual currency' on account of the limited use of cash, extensive familiarity with electronic finance, and extensive interest in Bitcoin in Icelandic society, coupled with the long-term instability of the króna.[4]

Airdrop

[edit]

The developers used the Kennitala national identification system to give away 50% of the total issuance of Auroracoins to the population of Iceland, a process known as an airdrop, hoping to bootstrap a network effect and introduce cryptocurrency to a national audience.[5]

Controversy

[edit]

As of 2015, the legal status of cryptocurrencies in Iceland was unclear, though the Auroracoin airdrop involved government approval of Odinsson's use of the national database of citizens, Íslykill.[6] Some Icelandic politicians have taken a negative view of Auroracoin. During a parliamentary debate on March 14, 2014, MP Pétur Blöndal, vice-chair of the Parliament's Economic Affairs and Trade Committee (EATC), emphasized that potential tax evasion through the use of Auroracoin could impact Iceland's economy. He also said that the public should realize that Auroracoin "is not a recognized currency since no-one backs the medium".[citation needed]

MP Frosti Sigurjónsson, a member of the ruling Progressive Party and Chairman of the EATC, suggested in a blog post on his website that there is evidence that Auroracoin is an illegal financial "scam".[7]

References

[edit]
  1. ^ Samúel Karl Ólason (February 6, 2014). "Auroracoin dreift til allra Íslendinga". Vísir.is (in Icelandic). Archived from the original on August 26, 2021. Retrieved September 2, 2020.
  2. ^ a b c d Casey, Michael J. (March 5, 2014). "Auroracoin already third-biggest cryptocoin–and it's not even out yet". (Blog) The Wall Street Journal. Archived from the original on November 11, 2020. Retrieved August 4, 2017.
  3. ^ Karl Ólafur Hallbjörnsson (March 24, 2014). "Nýr rafeyrir að nafni Auroracoin er öllum Íslendingum fáanlegur frá miðnætti". Vísir.is (in Icelandic). Archived from the original on March 12, 2022. Retrieved September 2, 2020.
  4. ^ Porter, Richard D.; Rousse, Wade (2016). "Reinventing Money and Lending for the Digital Age". Banking Beyond Banks and Money. New Economic Windows. pp. 165–166. doi:10.1007/978-3-319-42448-4_9. ISBN 978-3-319-42446-0.
  5. ^ "As Auroracoin "Airdrop" Approaches, What Does It Mean When A Nation Adopts A Cryptocurrency?". Tech Crunch. March 1, 2014. Archived from the original on November 3, 2021. Retrieved June 25, 2017.
  6. ^ Hendrickson, Joshua R.; Hogan, Thomas L.; Luther, William J. (2016). "The Political Economy of Bitcoin". Economic Inquiry. 54 (2): 925–939. doi:10.1111/ecin.12291. hdl:10.1111/ecin.12291. S2CID 153540326.
  7. ^ Frosti Sigurjónsson (February 7, 2014). "Auroracoin peningasvindl?". frostis.is (in Icelandic). Archived from the original on August 9, 2020. Retrieved September 2, 2020.
[edit]
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