The altcoin project Monero (XMR), which carries out transactions confidentially and anonymously, is the subject of a huge protest on the Reddit platform, claiming that centralized exchanges do not reflect XMR reserves correctly. Thousands of users are withdrawing XMR en masse from centralized exchanges, and the price has risen more than 5% independent of the market overall.
“Central exchanges lie”
“Protest preparations first became widespread among the Monero community. This is because most centralized exchanges do not allow them to shoot XMR for bogus technical reasons. Later, users of other cryptos realized that they could not withdraw their funds due to fake liquidity power. Although anonymous cryptos were affected first, other crypto types were also touched after a while. This crazy situation was made possible by the tendency of major centralized exchanges to have fake liquidity. This is because their economic structure is to generate profits based on your buying/selling transactions: no trading brings profit.
Because crypto exchanges are not properly regulated like traditional exchanges, they are simply trying to generate “paper” coins that do not exist. These coins can be easily traded, but withdrawals will fail,” says “pet2pet1982” from the r/CryptoCurrency subReddit. The statement includes the following statements targeting centralized exchanges:
The most corrupt exchanges in terms of these “paper” coins are Binance, Huobi and Poloniex. Please don’t use these exchanges at all in the future and be prepared to switch from them. On April 18, 2022, try to withdraw all your crypto from all centralized exchanges and therefore check if your chosen exchanges are trading “paper” cryptocurrencies. If so, you cannot withdraw. This is an extremely easy experiment, just do your own test!
Altcoin price did as expected
Mass XMR withdrawals from central exchanges were made during the day. With the operation, the XMR/BTC pair exceeded $0.006. It reached $0.0065 at around 18:18.
The community’s claim is that centralized exchanges project stage funds to users through Monero’s (XMR) privacy-focused technology. With the protest, it was tested whether this was real by pulling XMR en masse from the exchanges. As Kriptokoin.com, we will be conveying the details of the development.
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