Temasek Refutes Claims of Investment in Array
Despite reports emerging on Monday that it had invested in Array, an algorithmic currency system, Singaporean state-owned conglomerate and global investment firm Temasek has denied any such investment.
In a very brief statement published to its website on Tuesday, Temasek stated:
“We have seen news articles and a tweet from Array about Temasek’s investment in it. This news is incorrect. Temasek has not invested in Array and we have no relationship with them.”
CoinTelegraph had taken to reporting the claim on Monday. The article had outlined a $10 million investment by the Singaporean state investor into Array, the developer of an algorithmic currency system that relies upon smart contracts and artificial intelligence.
Reputational loss
If it had been true, such an investment would have been seen as a positive for the crypto space as it would be indicative of a renewed appetite for crypto-based projects from the giant Southeast Asian investor.
Temasek was a key investor in failed cryptocurrency exchange, FTX. In November 2022, the company had to write down its entire investment of $275 million into the fraudulently managed exchange business. To an onlooker, a $275 million write-down may seem like an extraordinary loss.
However, given that the Singaporean investing behemoth has a $403 billion dollar portfolio, the loss represents just 0.09% of that portfolio, hardly making a dent in the health of the company.
The greater loss for Temasek relative to the FTX collapse has been reputational. Top tier venture capital investors like Temasek, who had otherwise been assumed to be the most diligent of actors in the professional investing world, were all sharply criticized for failing to identify the extent of the mismanagement and fraud that had occurred at the now bankrupt cryptocurrency exchange.
Bogus Claims
In fairness to those who had reported the fake news, they were acting on information that Array had put out into the ether and as of yet, has not corrected. At the time of publication, the project’s website features a list of renowned investors including Temasek. Alongside Temasek, Array claims to have obtained investment from Standard Chartered, Coinbase Ventures, Spark Capital, Khosla Ventures, The Blackstone Group, Binance Labs, Sequoia Capital and a16z.
In the case of Binance Labs, a spokesperson for the venture arm of the global exchange told The Block that it is not an investor in the project. To further dispel the claim, Temasek took to Twitter, stating:
”Fake news about Temasek’s investment in @Array_Protocol. We have seen news articles and a tweet from Array about Temasek’s investment in it. This news is incorrect. Temasek has not invested in Array and we have no relationship with them.”
Further instances of misinformation
The misinformation follows a similar scenario that played out with OPNX, a newly launched platform that offers spot and futures trading, alongside the ability for investors to trade bankruptcy claims.
A couple of weeks ago, the platform, which had been founded by Kyle Davies and Su Zhu, the key executives behind failed crypto hedge fund, Three Arrows Capital, asserted that it had the backing of some notable investors. Almost immediately, venture capital and market maker DRW and venture capital firm Nascent denied that they were investors in OPNX.
