Monero Keeps Losses on the Down Low
Market Meditations | April 11, 2022
Even during crypto dumps, we tend to see some tokens outperform the rest of the market. These outliers usually have a reason behind their performance. The latest round of exceptional resilience finds Monero in its ranks.
- Monero (XMR) has been in a rally since late February, consistently outperforming BTC since 29 March of this year, and gaining more than 10% before upward movement abated on Saturday.
- Monero was one of the first cryptocurrencies to focus on cryptography to achieve its goal of advancing privacy. It’s different from most other digital assets in that it facilitates transactions without making the data available for anyone to examine on the blockchain.
- Privacy coins have been heavily criticised by governments due to their ability to obscure transactions, making them useful tools in the world of money laundering.
- Speculation surrounding the possibility of entities using Monero to bypass sanctions could be the cause of investor interest.
- The IRS has offered $625,000 to anyone able to crack the privacy protections of popular privacy coins like Monero and Zcash.
The privacy features of XMR make a truly private currency possible, but with great power comes great responsibility – and regulators may never give the public the chance to decide how to use that power.
Utility and value aside, Monero will always run the risk of catching regulators’ attention if its popularity rises too sharply.