Monero (XMR) Up 80% Past Month Despite Chainanalysis Danger
Last Updated on 6 November 2023 by CryptoTips.eu
Privacy coin Monero has known a very good month of October so far. The Monero price is up some 18% in the past week and has climbed some 80% in the last month. This is strange as blockchain intelligence firm Chainalysis is warning that privacy tokens have a limited future.
Chainalysis CEO Gronager said in an interview with Forbes this week:
Privacy coins are a very interesting technology
If you look at their use cases, which includes the likes of crime syndicates, you need liquidity and adoption and you need a lot of people to use it.
Monero is burning rubber. pic.twitter.com/kxuOMqEPoZ
— The Chief Coin (@TheChiefCoin) October 14, 2020
That works for bitcoin as it has liquidity. Monero and zcash are niche purposes that can’t be used for criminal activity at scale. There will be privacy coins and there will be privacy features but they’re niche products. Long term it’s not something we should be very concerned about.
However, former crypto favorite firm Chainalysis is drawing heat over a recent agreement with the U.S. Internal Revenue Service to try and develop transaction tracing tools for XMR, which would possibly mean an end to the anonymity of Monero traders.
Meanwhile, SEC Crypto Mom Hester Peirce recently also warned against the usage of privacy tokens, saying:
When there are US users of a product or service, there’s going to be enforcement of US laws.
Monero Leads Rally in Privacy Coins, Rising to Two-Year Highs https://t.co/acQEyJ8MGH pic.twitter.com/IfBbByAbFG
— Wild West Crypto Show Featuring Drew & Brent (@WWCSTX) October 12, 2020
Two year high
Traders are not convinced the SEC, the IRS and Chainalysis will be successful though, as the 15th largest cryptocurrency by market value (according to CoinMarketCap’s ranking) has had a stellar past two weeks and is up nearly 80% from lows below $75 observed in early September, towards two year high value of around $130.
