Get the Finder app 🥳

Track your credit score

Free

Grin had “most expensive genesis block one in history”

Posted: 18 January 2019 6:10 pm
News

Grin mining saw massive investment from the very start, but that's not entirely good news for prices.

A lot of people have been keenly watching the launch of the Grin privacy cryptocurrency for several reasons.

Firstly, because as a MimbleWimble implementation it's something of a crypto curiosity. Secondly, because its cypherpunk vibe reminds a lot of people of bitcoin's early days, and thirdly, because there has been an enormous amount of investment in Grin mining infrastructure prior to its launch.

Primitive Ventures conservatively estimates that about $100 million has been put towards Grin mining infrastructure prior to launch, making Grin the proud owner of "maybe the most expensive genesis block one in history" as Primitive Venture's Dovey Wan said to CoinDesk.



Upside-downsides

At an intuitive glance this seems like it might be nothing but good news, but according to Primitive Ventures it comes with some price downsides too.

Specifically, it means a lot of the people who would have otherwise been early buyers of Grin will instead be sellers, as their mining investments start bearing fruit to be sold. This stands to chip away at prices from both the seller and buyer sides.

The extra mining competition isn't necessarily great for profitability either, and earlier investors may find themselves needing to reevaluate their expectations.

The upside though, is that the network will launch with a high degree of security. Despite its bitcoin-like ethos, Primitive Ventures notes that the ascent of cryptocurrency to the mainstream means those days are probably gone for good.

"What Bitcoin pulled off, an organic launch without any professional investment early on, is unlikely to ever be possible again," it suggests.

On the markets, Grin is still thin on the ground and swinging wildly. The Grin Galleon exchange is showing big spreads and little commitment.

According to Coinlib Grin got about US$350,000 in volume over the last 24 hours, and its prices have wavered as hard as one would expect an enigmatic and still quite rare digital asset to waver, changing hands at prices between about $20 equivalent and about $5 equivalent.

Round and round it's still going. Where it will stop, nobody's knowing.


Disclosure: At the time of writing the author holds ETH

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Crypto explained


Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site