Monero Spike: Why?

What is behind the rapid rise?

Monero Spike: Why?

Price Talk?

Monero users often hate discussion of investing and the price, but an awareness of what’s going on, may better help inform your decisions with real world cash use. Often financial media pundits will be quick to assign causality to random price movements. But I do have some thoughts on this issue.

Fears


On the biggest factors holding back investors into Monero, was the idea that it’s being delisted and potentially sanctioned.

These are two separate issues:
Issue 1) Delistings
Issue 2) Sanctions
With issue 2 being much more serious.

EU

As the EU’s MiCa laws come into effect, Monero has been delisted on Binance in order to comply. Under this regulatory framework, not only does the customer have to KYC, but the wallets where funds are sent from must be identified. This makes privacy coins such as Monero incompatible with the framework.

US

And many speculators looked to see if the US Kraken would delist XMR as well. As Kraken is the primary exchange where XMR is still traded.

Tornado Cash

The US court ruling on Tornado Cash’s blockchain, not being a sanction-able entity was a huge game changer. Under this lawsuit, which was initially filed by Coinbase, the judge found that Tornado Cash’s blockchain by itself was not an entity per say that the OFAC sanctions could be applied to. Therefore, in this judge’s ruling, it fell outside the jurisdiction of OFAC, and they had overstepped their authority by sanctioning this blockchain.

This Tornado Cash court ruling not only challenges the ability to sanction Monero, but also effects the ability of exchanges to file lawsuits on behalf of the coins listed. This puts less pressure on regulatory compliant exchanges to delist assets in advance, to avoid pressure.

In our earlier article from Feb 2024, we argued that the government could not “pull a Tornado Cash on Monero”. But it turns out, that the government could not even “Tornado Cash Tornado Cash”.

Trump

When combined with a Donald Trump victory in the US, suggesting an easier US SEC and cryptocurrency enforcement, it is easy to see why investors are excited about this critical catalyst.


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