Grin fell 94% on the first day of its launch, investors are still optimistic about the Grin community

This article comes fromcryptopotato.comTranslator |

Translator |

Editor | Lu Xiaoming

Editor | Lu Xiaoming

We think that the initial high price may be artificial hype, but the author of this article is optimistic about Grin, and believes that it is normal for it to go up and down at the beginning of its launch.

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On January 16, the very popular Grin mainnet was launched, F2Pond dug out the first block, and the issuance price of Grin once exceeded 260 US dollars. Mainstream major exchanges have not launched grin yet, exchanges such as Bibox, Bitan, BigONE, Lbank and Bifu have already listed the currency.

Then in the following 24 hours, due to the increase in the supply of Grin, the price of Grin currency plummeted, falling by 98%. As of the publication, it remained at 7.5 US dollars, almost 50 RMB.

Such a price trend after the Grin mainnet was launched is predictable, because history can verify that this is the only way for most high-quality projects.

Monero, Zcash, and Ravencoin have followed similar paths to Grin. They have a very high inflation rate in the early days, and then, the price drops until the inflation rate drops. Therefore, the price trend of Grin after its launch is within the foreseeable range. Although it is still falling now, it will still show an upward trend in the future.

During the development process, Grin has received a lot of attention and publicity from the outside world. As the mainnet launch date approaches, miners have higher and higher expectations for Grin. After the first block was mined, the market demand for Grin pushed its price to its peak. However, with the continuation of mining and the continuous generation of new coins, the supply expanded at once, but the market demand was not fully released, so Grin began to depreciate rapidly.

But the current price drop of Grin does not mean that Grin has no future. On the contrary, the explosion of research and analysis on Grin by the community, technologists and media in recent months shows that the crypto community greatly appreciates Grin. Because of its privacy features and improvements, it operates more efficiently than some older cryptocurrencies. Despite the price drop, many investors remain optimistic about Grin.

The Grin team wants to position Grin as a real currency rather than a store of value. Compared with Bitcoin, the quantity of Bitcoin is limited.

Grin has a different approach. Its issuance method is different from the constant total amount of Bitcoin, and it is not a deflationary type. Grin has no upper limit for issuance. One block is produced in 1 minute, and 60 Grin per block, and then there is no more. The speed of 1 Grin is issued permanently.

Therefore, the inflation rate after the launch of the mainnet was very high. In the first year, 31.53 million coins were produced, and in the second year, the same amount was produced. The inflation rate was 100%, the third was 50%, and the fourth year was 33.3%... It will drop to 10% after the 11th year, 5% after the 21st year, and below 3% after 35 years. If you count the coins that are lost every year and can never be recovered, there is probably no inflation .

Subject to the high inflation in the early stage, it is not conducive to the mining of early miners, which also makes it easier for Grin to become a currency. It will not become a means of value storage like Bitcoin and cannot enjoy high appreciation expectations, but people will be willing to use it rather than speculate. hoard.

Originally, moderate inflation is a good way to promote social progress, and deflation usually restricts consumption, so Bitcoin has completely deviated from the path of currency after 10 years of development. The emergence of Grin provides a new way of thinking, and it is also a social experiment. Whether it will be successful in the future remains to be tested by time.

Grin, like Bitcoin, is a network made by geeks full of ideals. Unlike many projects that go straight to make money, Grin adopts a community-driven model, no ICO, no founder rewards, and the team did not carry out any projects before the mainnet went live. The distribution and pre-mining of tokens, only rely on donations to maintain development, and also stated that they will not actively seek exchanges, and the degree of commercialization is low. This is also their way of paying tribute to Satoshi Nakamoto, doing things very purely.