Redditors target Monero after GameStop and AMC

Meanwhile, the markets for cryptocurrencies seem to be in a bear market. Hardly any crypto seems to be able to escape the solid downtrend. Monero (XMR) does not participate in this, the largest privacycoin continues to rise happily. One hard fork seems to be a major cause.

software update Monero

Last week developers announced Monero’s GitHub page indicates that a network update is underway. Since then, the Monero token has already risen by more than 10%, and by almost 20% if you include the absolute top. The price is currently seeing a small dip. The update takes place via a hard fork† Improvements include improved privacy features and increased performance.

Thus the ‘ring size‘ increased from eleven to sixteen hashes. The ring size means that your transaction will be merged with eleven signatures from others and from signatures that do not come from anyone. For example, it is unclear where money comes from and where it goes.

À la WallStreetsBets

On 14 April announced Redditor Bawdyanarchist to have started withdrawing Monero from exchanges. The Reddit user called it “Monerun,” joking Monero with “bank run‘ combines. However, making money is not the only reason.

The privacy functions of the Monero ledger ensure that it is not immediately clear how much XMR is available at exchanges. That allows trading platforms to claim that they have a different amount of XMR tokens than they actually have. As a result, they can sell more than they actually have.

So the situation is similar to that of GameStop and AMC. Those were shares that were heavily shorted were provided by institutions. In fact, it was so extreme that the amount of shorts outstanding exceeded the company’s total market value. The Reddit group WallStreetBets found out, leading to a massive short squeeze and huge surges. The Redditors are clearly trying to accomplish the same thing again.

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tHowever, trading platforms are throwing a spanner in the works by freezing their reserves. Some platforms would not have started this yet, which you can use. In any case, we know that Binance has already made XMR withdrawals impossible.

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