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Grin finally bares itself!

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Satoshi&Co Daily Crypto Newsletter

January 17 · Issue #107 · View online
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Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website www.satoshiand.co

Grin - one of the most awaited projects in recent times - has finally launched on the mainnet. The privacy-focused cryptocurrency uses a novel technology called “MimbleWimble” that keeps the blockchain lean and offers privacy by default. You can read more about Grin and its rival Beam in a blog post that we published last week.
The projects seems to have had a smooth launch with the hash power secularly going up and reaching over 300k graphs/sec within 24 hours after the launch. Grin has two PoW algorithms, one for GPUs and the other geared towards ASICs in the future. Mining dominance stats after the launch indicate that the mining is highly centralized with the top two pools accounting for more than 70% of the network’s hash rate.
Source: grinscan.net
Source: grinscan.net
Source: grinexplorer.net
Source: grinexplorer.net
Grin clearly aims to be a medium of exchange currency for private transactions and not a store of value coin. Unlike Bitcoin and ZEC, Grin’s monetary issuance model is perpetually inflationary with a flat block reward of 60 grin per block. The lack of perceived scarcity makes Grin a non-contender in the race to become a global digital SoV coin. It will be interesting to see how Grin’s price reacts to its highly inflationary nature of coin issuance in the first few years, as the inflation rate at the end of 2019 is going to be as high as over 100%, with the rate expected to subside to below 2% only in the 2070s. In contrast, Bitcoin’s inflation rate is going to drop under 2% by the next halving event or 11 years after its launch. This characteristic of high onset inflation discourages hoarding and encourages spending, in line with Grin’s goal of becoming an MoE coin for private transactions. The expectation is that perpetual issuance will dampen volatility as demand increases. On the other hand, Beam’s hard cap on total supply, akin to BTC and ZEC, incentivizes hoarding driven by an expectation of future price appreciation due to its scarcity.
Grin epitomizes the fallacy of using current market caps for cryptocurrencies that have inflationary issuance schedules. Based on prices from obscure exchanges that already listed Grin, the current market cap stands at a paltry $1.2 million (price of $7.5 and 160k supply), which is orders of magnitude lesser than its valuation of ~$7.5 billion based on more standardized Y2050 market cap (ZEC is valued at $1B based on Y2050 market cap).
Meanwhile in Crypto Wonderland....
“South Africa May De-anonymize Bitcoin”
According to Business Insider, the Reserve Bank (SARB) will be releasing a “policy paper” regarding Bitcoin (BTC) and the broader crypto ecosystem in the coming months. The Reserve Bank claims that its up-and-coming registration system should aid in protecting investors and consumers. Reports claim that the financial entity is also looking to integrate such a system to ensure crypto-related laws are paid in full. SARB seeks to accomplish this task by de-anonymizing BTC transactions and ensuring that exchanges, wallets, and projects of similar caliber actively track transactional data.
“Ethereum Co-Founder Joins ErisX Board”
Joe Lubin, who leads ConsenSys, a firm aimed at building out projects to support the Ethereum ecosystem, has been named to ErisX’s board of directors. ErisX, a derivatives exchange, is backed by Wall Street trading firms including Virtu Financial, Susquehanna International Group, XR Trading and DRW and recently raised $27.5 million from its investors. The firm said in October it would have its spot market for crypto trading up and running by Q2 of 2019.
“Rep. Emmer Re-submits Crypto Bill”
A bill exempting companies providing non-custodial crypto services from certain state money transmitting laws has been re-submitted to the United States Congress. The bill, titled “to provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services,” was submitted by Tom Emmer, a US congressman who has also shown interest in cryptocurrencies and blockchain technology in the past.
“Malaysia Labels All Crypto as Securities”
Securities Commission Malaysia (SC), the country’s top financial watchdog, has announced that it would categorize cryptocurrencies such as Bitcoin as securities. The commission confirmed in a press release that the said regulations have come into force as of January 15. Therefore, anyone planning to run crypto operations inside the country would have to obtain a license from the SC. Malaysia’s finance minister Lim Guan Eng clarified that individuals found to be breaking their crypto laws would be treated according to the securities laws guidelines.

Crypto Twitter Pick
Evan Van Ness
My Ethereum prediction for 2019 is simple: layer 2 is coming.
What We Are Reading / Listening To
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This newsletter does not constitute an offering of securities in any jurisdiction. The contents of this note should not be construed as investment advice or as a recommendation to purchase securities. This note is intended for the consumption of the recipient alone and not for public distribution. Please consult a certified financial advisor or other appropriate practitioner as may be appropriate as per your jurisdiction.

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