There has been a major buzz around the launch of the new cryptocurrency Grin. Typically, these launches mainly attract low cap gamblers looking for a quick buck.
This time has been a different story. A really diverse core of Grin supporters has been hardcore maximalists, probably owing to the strong cyberpunk feeling reminiscent of Bitcoin’s early days. The author of Grin’s white paper is anonymous, there is no premed. It is fully anonymous and should be quite well scalable.
For the first 24 hours, there was no trading because coins need to mature before sending. This lead to a colossal amount of miners who mined blindly without any idea what their reward ratio would be. And when Grin hit its first exchanges…. this didn’t really help, because for the first few days the price was volatile: really volatile.
Market reactions
Rates stood at a minimum of 4 USD and a maximum of 262 USD in one day, and a surprising amount of investors proved willing to accumulate this currency because they saw it as a potential future Bitcoin. I am not so optimistic, because I see a great advantage in the absence of anonymity in Bitcoin. However, I must acknowledge that we also need anonymous cryptocurrencies, and Monero could find itself facing some heavy competition in the near future.
That said, I still haven’t bought any yet – and with very good reason. Grin had an inflation rate of 50 Grins per minute for an eternity. This will generate quite a lot of inflation in the first few years and we shall only see its price after the current hype vanishes.
For a good example of an over-hyped beginning, we need look no further than Zcash, which is now quite an established cryptocurrency, but started out at a cost 6,5 BTC per ZCash and is currently is traded for 0,014 BTC. I fear that Grin will go the same way.
Even though it must be considered an extremely risky asset (even in comparison with other risky cryptocurrencies) Grin still merits our attention because it has the potential to become one of the biggest cryptocurrencies of the past few years.