For a Cryptocurrency Project having its own genesis block means a few important things about its integrity and the fair distribution of the digital coin rewards.
What having its own genesis block does mean for a Project?
First of all, it means that the specific project has been launched as an independent one with its own history and its own rules.
Forks : Cryptocurrencies without their own genesis block
The cryptocurrencies that don’t have their own genesis block, are just blockchain forks of other cryptocurrencies. So they “airdrop” the coins to specified holders of other coins. For example the BitcoinPrivate is a fork of Bitcoin and ZClassic and the majority of the BitcoinPrivate coin supply has been “airdropped” to people who owned Bitcoins and ZCL coins during a specific time frame.
Of course the probability of speculation by teams that are launching forks is really high. Sometimes the forks are expressing the different view of a Community part or are offering some solutions by setting different rules after a specified block height. However in reality, the most times, are just the perfect ‘speculation medium’.
It is quite simple : By using the blockchain of an already well-known cryptocurrencies the “developers” of a new project are instantly getting the needed exposure. They just create a new set of rules for their “new creation”. These rules are known to them before going public and they can fulfill them much earlier. The most simple way is by acquiring the required coins (on whose blockchain the fork will be applied) and selling them to the buyers who are pumping the prices after the publication of the rules.
A perfect example about how fork speculation works
When the BTCP (Bitcoin Private) team announced that they would give BTCP coins to ZCL and Bitcoin holders, the ZCL price enjoyed an insane price pump. The makers of BTCP could easily have bought cheap ZCL before the publicity of the rules , and they could easily know that their BTCP should be sold in the very beginning of the Project. Easily, everyone can imagine the crazy profit that a team can enjoy in scenarios like the aforementioned one.
This is why having started from a Genesis Block is a really important parameter for a Cryptocurrency . Most importantly for its supporters if they don’t wish to be victims of extreme speculation scenarios.