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TL; DR
- A new privacy-oriented cryptocurrency, Grin (GRIN) has just been published live with a high price of $ 261 per coin after the first block has been extracted.
- However, in the next 24 hours, the currency has lost up to 98% of its value and is currently trading around $ 7.5 due to the expansion of its money supply.
- This is a known phenomenon that has happened in the past in many other promising projects.
Grin (GRIN), a new cryptocurrency that employs the Mimblewimble protocol, it just crashed in a matter of hours. The coin managed to launch it MainNet only a few days ago, and while its initial value exceeded $ 260 per coin after its first block had been mined, it lost more than 98% of its value in less than a day.
Grin is a new and innovative currency for privacy that provides users with a certain level of privacy and anonymity during their monetary exchanges. Grin has a governance that can be compared to the cyberpunk ideology; encourages community-led decentralization. The developers are volunteers and there are no ICOs.
Grin is using the Mimblewimble protocol that combines two concepts. The first concept is a private transaction. A confidential transaction encrypts the value of the transaction, so it is not visible to anyone outside the participants of this specific transaction. The other concept is complete cutting. In Cut-Through, transactions are merged within a block, so all interim transactions are removed. This concept significantly reduces the size of the blockchain which makes its storage much more scalable.
Why has the Grin value decreased?
Grin is a coin that has received a lot of attention and clamor during its development, and the enthusiasm for the currency has only increased to the approximation of the launch date. As a result, as soon as the first block was extracted and the Grin coins appeared in circulation, the huge demand has launched its value at extreme levels. However, as extraction continued and new coins were generated, the supply expanded and the currency began to lose value rapidly.
The current price drop does not mean that the quality of the currency is negative. Instead, the massive demand from those who have studied and followed its development in recent months indicates that the crypto community appreciates the currency.
Grin team wanted to place Grin as real currency and less as a store of value. In contrast to Bitcoin there was a limited amount. Grin will have an infinite amount of coins with a linear supply program. This means that inflation as a percentage of the existing supply is very high in the early days but is continuously lowered over time. In theory, convergence towards zero percent, but it will never come to us.
As mentioned, the initial hype brought the value of the coin up to $ 261.65 when the currency first emerged. At the time of writing the sharp drop that followed he reduced the value of Grin to $ 7.5.
Grin's price change model had already been seen
Ever since the clamor on Grin was noticed, it was logical that its price would soar as soon as it hit the exchanges, and then go down after generating more coins, which is exactly what investors have seen in the previous 24 hours. .
However, Grin has received much attention due to its privacy features and improvements that allow it to operate more efficiently than some of the older cryptocurrencies. Despite falling prices, many investors remain optimistic about the currency.
Other coins like Monero, Zcash and Ravencoin had a model very similar to Grin. The rate of inflation was very high in the first days of the coins. Therefore, the price fell until the inflation ratio decreased. From that moment on, the fundamental analysis of money takes control and moves the price upwards.
Do not be burned by MimbleWimble hype.
At dawn @grinMWThe launch of MainNet, we are witnessing the emergence of P2P cash that is really fungible and without trust.
Despite the long-term promise of $ GRIN, short-term prospects of a fair launch PoW coins are grim.
A case study of $ XMR, $ ZEC & $ RVN. pic.twitter.com/Z7Cnsz7Fvg
– NM (@ByteSizeCapital) January 15, 2019
CryptoPotato video channel
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