A gang of Monero aficionados, reportedly fed up with centralized exchanges, has announced on social media that an XMR “bank run” will take place on April 18.
On the eighth anniversary of the coin’s inception, the so-called Monerun is a reaction to what community members regard as a lack of openness surrounding Monero, including charges that central exchanges are banning XMR withdrawals and misrepresenting reserves.
“Looking more and more like exchanges are paper trading #Monero and lying about how much they have to customers. Opt out, get those keys off exchanges and actually own your $XMR,” information security engineer and Monero enthusiast Seth Simmons wrote on Twitter.
The proposal was outlined in a Reddit post on Thursday. “We’re withdrawing XMR from exchanges,” a person called bawdyanarchist wrote on the r/CryptoCurrency subreddit. “Any exchange that hasn’t disabled withdraws (which many of them have already), we’re pulling our funds.” As of Saturday, that post had received over 2,200 upvotes.
According to Bawdyanarchist, Monero’s obfuscated ledger technology allows exchanges to misrepresent reserves and sell XMR that they do not truly have. According to Bawdyanarchist, exchanges may do this since they assume the majority of Monero holders will not want to withdraw their assets.
As a result, members of the Monero community appear to be coordinating attempts to remove XMR coins from as many exchanges as possible in order to determine if they are correct.
Monero is the 32nd-largest cryptocurrency by market value, with a market cap of approximately $4.2 billion, according to CoinMarketCap.com. It is a privacy coin that was created in 2014 as a hard fork of Bytecoin. In Esperanto, a 19th-century international language, monero signifies “currency.” On Saturday, the price of Monero was around $237.
Monero employs a cryptographic mechanism known as zero-knowledge proofs, which allows users to conduct transactions without disclosing any specifics about the transactions other than the fact that they are legal. Unlike other privacy currencies, such as Zcash, Monero exclusively supports private transactions.
“What better way to celebrate the birth of true digital cash than to coordinate a centralized exchange monero bank run!!!” tweeted Douglas Tuman, a former congressional candidate and Monero advocate.