Grandma was funky
One of the worst things you could discover in your grandparents’ basement is naughty toys. By naughty, we don’t have to explain since you probably got the picture. Thankfully, this isn’t a picture of that kind of toy, but it did make the OP rethink how they remembered their deceased grandmother.
According to internet strangers, this is an old opium pipe. It probably came from China, judging by the style of design that covers the exterior. Did this person’s grandma use it before? That’s probably an old family secret that neither we nor the OP will ever find out. Some things are left unknown, you know?