Suspicions that CEXs are overstating Monero’s reserves will be put to the test in a coordinated run on Monero.
The Monero community is driving support to withdraw XMR on April 18 in response to “shady practices involving paper Monero”.
The organizers are angry that three digital assets exchanges are not listed on the Coinmarketcap ranking, and they point their fingers at Binance, Huobi, and Poloniex specifically.
It is suggested that data reported by exchanges should not be taken into account, for the aggregators, in the analysis of CoinGecko.
Members of the community said:
“Binance, Huobi and Poloniex should be excluded from Coingecko coin metrics for XMR [..]
“It is abhorrently apparent that these exchanges do not have the XMR they are selling available to give to their users.”
Support is being rallied for a coordinated strike against CEXs on Monero’s eighth birthday, but what does this entail exactly?
What is Monerun about?
Monerun is an attempt at building a social network for people to borrow from each other.
Someone on Reddit likened it to WallStreetBets (WSB) and Monero.
Short-selling institutions, which have been responsible for many financial crisis, are being punished. In 2021, the Wall Street Bolsa (WSB) movement sought to teach short-selling institutions a lesson in people power.
Short-sellers coordinated stock sells in GameStop and AMC, both of which were hit hard by the health crisis, making them targets for long-sellers.
Wall Street short-sellers were caught with their pants down. They got caught because they failed to predict the volatility that resulted from a massive influx of fresh capital into the market.
The Crypto movement later transitioned to crypto, with Dogecoin selected as the token to benefit.
The dogecoin price increased from the beginning of the mania to the peak.
It’s possible to use Monero to buy and sell coins that are not actually held in your wallet. This enables a CEX to misrepresent the number of coins they hold and to trade those coins without evidence of misconduct.
“Monero’s obfuscated ledger has enabled a number of exchanges to misrepresent their reserves, and sell XMR that they don’t actually have, knowing that all too many of us will never withdraw, and no one can see onchain the evidence of their misdeeds.”
The Monero community wants to hit CEXs where it hurts
The blockchain is an encrypted public ledger that records transactions publicly, making it impossible for a user to alter or delete it.
The organizers suspect that the lack of transparency is due to the lack of transparency provided by these CEXs.
The Monero community will use a coordinated simultaneous withdrawal of all of their XMR holdings on April 18 in response to the allegations of money laundering.
“April 18th. We’re withdrawing XMR from exchanges. Any exchange that hasn’t disabled withdraws (which many of them have already), we’re pulling our funds.”
It is not clear why some users are having trouble withdrawing their monero, but if
Organizers said any Bitcoin exchange that blocks transactions are likely complicit in the shady practices.
