[ad_1]
Grin, a new privacy-oriented cryptocurrency, has long attracted cypherpunks. But another group was in force to extract on the network that was officially launched Tuesday: investment firms.
"We watched the whole show today, with perhaps the most expensive genesis block in history," Dovey Wan of Primitive Ventures told CoinDesk.
CoinDesk contacted several investors who were also closely observing the launch of the privacy-focused cryptocurrency, which was developed using the technology known as mimblewimble.
Primitive Wan's partner, Eric Meltzer, wrote about the launch of Grin in his Proof of Work newsletter this week, noting:
"There is (according to our conservative estimates) 100 million dollars mostly of VC invested in special purpose investment vehicles to extract Grin. This does a lot of strange things: it transforms a group of people who would have been buyers of smiles in sellers of it, changes the composition of the first holder roster, and means that the chain will be launched with an extremely high level of security through high hashrate PoW. "
Chris Dannen of Iterative Capital, a fund with a strong focus on the mining industry, has seen similar levels of interest.
"Anecdotally, we know that a plurality of Chinese GPU farms are already doing hashing on these two networks," Dannen told CoinDesk in an email (Beam is the other network). The iterative is involved in the extraction of Grin, confirmed Dannen.
Why the question?
"This is the thing that comes closest to bitcoin," said a partner of a cryptic investment company that spoke about the condition of anonymity. "In the minds of many investors it's kind of a pattern-match for & # 39; bitcoin 2.0. & # 39;"
The investor, whose company joined a group of other Tier 1 investors to extract Grin, says that "a perfect storm" is fueling Grin's demand. For beginners, it's a technology that many of the first to adopt are enthusiastic, and there's also an excess of GPUs and data center capabilities that miners are eager to point towards the Grin network.
The investor highlighted potential negative aspects, however, emphasizing that Grin is designed to be highly inflationary in its early years.
Although invested in the ecosystem, Primitive Ventures tells CoinDesk that it is not digging Grin. Wan said that the economic aspects do not seem right yet.
This is a point that Josh Metnick, a mining contractor, has confirmed to CoinDesk. "I would say it's already finished," said Metnick.
The company of Metnick, Random Crypto, is investing a lot in temporary proof of work, with the thesis that a bear market is the right time to enter this business. That said, it also made it something of a personal mission to make the assessment of the profitability of the mining sector more transparent, releasing a new mining yield calculator to the public at the end of last year.
However, there was great interest in the Grin platform. The launch of Blockchain Services BlockCypher, which has been a supporter of mimablewimble implementations for a while, has confirmed as much as to CoinDesk.
"There is a significant investor interest," wrote CEO Catheryne Nicholson in an email.
Informative sources told CoinDesk that several large funds bought hash power ahead of the launch of Grin. But they may be disappointed – while they are excited about the great interest in a protocol that finds compelling, Wan does not believe that the first draw was a wise move.
She wrote:
"Grin will not be profitable, especially at the beginning."
Zack Seward contributed to the report.
Data mining hardware image through Shutterstock
[ad_2]Source link
