Some Monero aficionados are organizing an XMR “bank run”, which they dubbed as Monerun. This is their reaction to what they perceive as a lack of transparency around Monero, including claims that central exchanges are halting XMR withdrawals and misrepresenting reserves.
The activity demonstrates that the Monero community are fed up with centralized exchanges.
Planned activity
The move was detailed through a plan which was first posted on Reddit on Thursday by a user named bawdyanarchist.
In the post on the r/CryptoCurrency forum on Reddit, bawdyanarchist said that Monero enthusiasts will be withdrawing their funds from any exchange that hasn’t disabled withdrawals. The post has garnered over 2,200 upvotes as of Saturday.
Meanwhile, Seth Simmons, Monero aficionado and information security engineer, tweeted that exchanges appear to be paper trading Monero and misleading to clients about how much they have.
“Opt out, get those keys off of exchanges, and own your $XMR for real,” Simmons tweeted.
For Bawdyanarchist, Monero’s obfuscated ledger technology enables exchanges to misrepresent their reserves and sell XMR that they do not truly own. Bawdyanarchist added that exchanges may do this since they assume the majority of Monero holders would not request withdrawals.
This resulted in Monero community members coordinating attempts to remove XMR coins from as many exchanges as possible in order to determine whether they are correct.
About Monero
Monero is a privacy coin that was developed in 2014 as a hard fork of Bytecoin. It has a market worth of roughly $4.2 billion, according to CoinMarketCap.com. In Esperanto, a nineteenth-century international language, monero signifies “currency.” On Saturday, Monero was selling for around $237.
Monero employs a cryptographic mechanism known as zero-knowledge proofs, which allows users to conduct transactions without disclosing any information about them other than that they are legal. Monero, unlike other privacy currencies such as Zcash, which enable public transactions, exclusively permits private transactions.