ForexMinute.com – Even the slightest of negativity can disturb the cryptocurrency market, proves the last 48 hours of Auroracoin – an Icelandic digital currency whose market cap prevailed Litecoin and Dogecoin last week. The currency displayed some magical, and equally unconvincing fluctuations by first dropping over 50% in the first 24 hours, and then rising almost 90% in the next 24, just before the time of this writing.
The disturbing fact is: it happened almost a week prior to Auroracoin’s much-hyped airdrop.
How Auroracoin Dropped?
We earlier reported in our news report ‘Auroracoin vs Icelandic Government’ that the latter is showing its disregards to the former by openly calling it a ‘monetary scam’. Chairman of the Committee for Economic Affairs and Trade, Frosti Sigurjónsson, of the ruling Progressive Party even recommended strict actions against Auroracoin via his blog as it is against the nation’s existing currency regulation policies.
“They can make it illegal to own or trade Auroracoin,” replied the currency’s creator Baldur Friggjar Óðinsson. ”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.”
Although this speculation is not exact but makes most of the sense when one tries to investigate why Auroracoin’s value dropped to over 50% on March 16th, right after the government presented its view on it.
And How Auroracoin Recovered?
The reason still might be a sudden panic recovery, as no official statement regarding cryptocurrencies use was discussed or released within the Iceland’s finance authorities. The Auroracoin “airdrop” hasn’t been delayed or cancelled upon the government’s view on the currency, at least not yet. Every Icelandic citizen is scheduled to receive 31.8 pre-mined coins. Might be the only reason why Auroracoin picked up on March 17th.
Auroracoin, however special and different it might seem on the layers, have once again proved the “volatility” factor associated with cryptocurrencies, no matter how well-marketed they are. The real verdict over the coin will still come after March 25th, the date of the aforementioned airdrop. Till then, it would be better for investors to hold their horses while investing in Auroracoin.
To contact the reporter of the story: Yashu Gola at email@example.com