- A new, obscure cryptocurrency, called Gravitoken, has grown by a mammoth 66,640% per cent in the past seven days to September 27.
- According to its official website, Gravitoken is mathematically guaranteed to increase in price by 9.81 per cent every eight hours until it reaches a ceiling of US$1,337,000 where it then becomes a stablecoin.
- It claims to achieve its guaranteed increase through a rebase protocol, which works in a way that the circulating supply rises or falls due to changes in the coin’s price.
A wise man once said: If something seems too good to be true, it probably is. Or as my grandfather likes to say, “There’s no such thing as a free lunch”.
This wisdom can be applied to every facet of life, but it particularly needs to be considered in the cryptocurrency community. New coins are being developed every day and it’s very much like popcorn in a pan. Some pop and, well, some don’t.
More specifically, some pop for a few days and then disintegrate in what’s known as a pump-and-dump system.
Is Gravitoken Crypto’s Astonishing Growth Too Good to Be True?
Combine this with the fact that an influx of hopeful people genuinely believes the crypto space to be the new gold rush. Then combine that with the fact that many are blinded by the promises of riches, without being equipped with the appropriate knowledge, and you have a fertile space for scammers.
This brings us to Gravitoken had the most explosive beginning to a cryptocurrency in history, with the coin having only been launched a mere nine days ago on September 16.
But is it real or is it a scam? There’s a lot to unpack here, including some mathematical ideas, new proposed technology and terminology. But understanding it may be the valuable. So, let’s dive in.
What is Gravitoken?
Let’s begin with the price, which as of 12:38pm on 27 September 2021 is US$11.65. The reason for the time specificity is because just over an hour ago, at 11.33am, Gravitoken’s price was US$11.50. About 15 minutes after that, at 11:49am, its price was US$11.62.
At the launch of Gravitoken, just eleven days ago on Separate 16 at, its price was US$ 0.000001038.
How Could This Be?
Gravitoken (GRV) claims to use a gravity-free, automatic liquidity pool algorithm.
What this means is that the token is mathematically guaranteed to increase in price by 9.81 per cent every eight hours until it reaches a ceiling of US$1,337,000 where it then becomes a stablecoin.
It claims to achieve its guaranteed increase through a rebase protocol, which works in a way that the circulating supply rises or falls due to changes in the coin’s price.
The supply of the token rises or falls algorithmically, when a rebase occurs, based on the current price of each token.
What’s concerning about this coin is the fact that the circulating supply is unknown at this time along with the coin’s market capitalisation.
However, the maximum supply of the coin is at 1,000,000,000,000,000
Who Are the Developers?
Gravitoken is the brainchild of three friends, whose names are unknown. According to CoinMarketCap, the lead developer has a PHD in mathematics and a background in quantitive finance, while the creative lead has ten years experience building website and brand assets. The third lead has a background in marketing spanning ten years.
The front page of Gravitoken’s official webpage says that it’s “a project born out of the need for reliable price rises amongst a sea of volatility and red candles”. This sounds nice. But it also sounds like someone promising to just hand you cold hard cash on a platter for the rest of your life.
If this is legit, clearly there’s money to be made. But it’s difficult not to think of the old adage “If it seems too good to be true, then it probably is”.