ForexMinute.com – With Bitcoin’s market capitalization falling 2% in the last 24 hours, it surely has sent a ripple effect to the first-most digital currencies in the lower hierarchy. The third largest cryptocurrency Litecoin has dropped around 4%, but the real blunder is occupied by Auroracoin – a country-based digital currency which is just hours away from its distribution among Icelanders, has fallen around 20% in the last 24 hours.
At the time of writing, the AUR/BTC is trading at 0.0203 on Poloniex, 0.0227 on Cryptsy, 0.0171 on CoinedUp and 0.0225770 on MintPal. Earlier, it was trading at 0.0240, 0.0262, 0.0220 and 0.0264 on the aforementioned trading platforms, respectively.
It is a surprising news for a currency which had once crossed Litecoin’s total market cap, becoming the third largest cryptocurrency in the world. It though still is on the respectable position, but a genuine technical analysis must be a complete reverse when one takes its scheduled airdrop which is just hours away.
Auroracoin is showing an expressive volatility, which might be influenced by the recent intervention of Iceland’s government into the whole matter. The central bank has already issued a warning to people against the potential negative impacts of Auroracoin that can jeopardize their damaged economy further. To be specific, the unacceptability of Iceland’s government has certainly influenced Auroracoin’s market prices very much.
“The Icelandic authorities warn the public of potential risks involved in the purchase, storage and conducting transactions with the virtual currency,” said Ministry of Finance, the Central Bank, the Financial Supervisory Authority and the Office of Consumer Protection in a joint statement.
Iceland has introduced exchange controls in 2008 for its own currency, the Krona. Previously, the three largest banks in the country had collapsed. The country fell into the worst recession in six decades. The controls are not completely abolished until today.
Although, the Auroracoin makers think of the airdrop as a nationalistic event that will give people the power to use and operate their money freely. “This unique event will create the conditions so that Icelanders can use this currency. So everyone has a beginning inventory and the Icelanders are informed about the currency and its opportunities,” said the makers of Auroracoin.
Meanwhile, investors are still holding their breath for the airdrop, which will be conducted within a few hours from now. The future of Auroracoin will be predicted based on the peoples’ reaction to the currency.
To contact the reporter of the story: Yashu Gola at email@example.com