When Bitcoin was created, it became a haven for the dark web operatives but could not cope with the demand and the privacy was not 100% as anticipated. This saw the emergence of Monero (XMR) with the promise of ensuring total transaction privacy across all markets. Trading in illegal goods and services has always remained lucrative.
Monero has always been the best privacy platform in the cryptocurrency landscape. Its adoption is a mix of users in the legal and illegal trade. The features are easy to use with transactions being untraceable. However, users are raising concerns that Monero could after all be compromised. With AML and KYC laws starting to bite, privacy has become a big concern to cryptocurrency users including Monero (XMR).
Monero (XMR) Increased Adoption
With cryptocurrency users looking for a coin that offered better privacy than what Bitcoin offered, the only natural choice was Monero. Reports indicate that the platform does not provide the promised privacy after it emerged that the plat form will fully run on the blockchain. This will make it vulnerable and sections of users are not happy with the move.
With the current regulatory measures, past transactions might be traced to unveil illegal transactions and players behind them. If this threat is implemented, adoption of the platform might sink to the bottom which will affect the value of the coin. This has made very many users get worried and non-illegal users might move from the network and seek better privacy coins like Litecoin and Dash.
There are two flaws that that have been noticed and these concern the Monero platform usage; it is easy to detect the amount of coins being spent. This is not what Dark web users are after. They are looking for complete privacy and anonymity. With the ability identify the time a transaction occurs, it might mean a certain level of traceability.
How Does Monero (XMR)
With these revelations, the price of Monero has not been spared. It might take a while for the price to appreciate since users are sitting on the fence for the developer team to clear the air. Definitely the Dark web dealings have to continue and Monero users are looking at Litecoin (LTC) for business transactions.
With the recent price drop from a high of $480, the coin is now trading at $176.81 which is a huge drop. Well this could not entirely be blamed on the privacy issues; other privacy coin prices are shift from green to red. These trends might continue until the market calms down by which time we can clearly see the effects of privacy flaws on Monero.
The Rise of XMR
Monero (XMR) was not designed for the dark web but to solve specific issues that Bitcoin was unable to perform. Privacy, speed and safety were the issues the coin wanted to address. With these features, users had trust in the platform and were ideal for both legal and illegal transactions. However, the shift from Monero to other platforms might not solve the issues of privacy; the migration could have transaction cost implications.
There is a lot than Monero should do if they want to increase their coin price and restore investor confidence in the market. Regulation compliance and a bit of marketing can do them better at the moment. Clearing their position would also give them a boost in terms of investor confidence and partnerships.
With Litecoin reluctance to achieve full privacy, Monero (XMR) can still redeem itself by putting their house in order. If it is true that the platform is compromised and nothing done about it, the price of XMR might plummet further causing panic to the community and the Dark web operatives. For now, it is a wait-and-see satiation.