Monero was released as a fork of Bytecoin in 2014. It has since returned a strong contender in the cryptosphere — currently the 33rd largest cryptocurrency by market cap. Monero has a market cap of roughly $4 billion. Additionally, it differs from most cryptocurrencies in that it focuses on providing true anonymity for transacting parties. The coin is undercut by mounting, persistent obstacles like growing regulatory headwinds and delistings from bigger exchanges.
Monero uses a technology called the CryptoNote protocol. These innovations included ring signatures and stealth addresses, which made it the most secure blockchain for users to transact on without being traced. These characteristics have fostered a loyal base of cyberpunks, libertarians, and privacy focused decentralization enthusiasts.
As an example, in January 2018, Monero had $542 worth per coin and was ranked 13th in total cryptocurrencies. Since then it has plunged almost 60% from its all-time high.
For all its technological innovations and passionate community, Monero cannot escape the growing regulatory pressure of recent years. Major exchanges like Coinbase and Kraken have delisted Monero in certain regions due to concerns over its use in illicit activities. Other governments, such as South Korea, have even gone so far as to full-on prohibit privacy coins such as Monero over similar worries.
Governments and financial institutions are increasing their scrutiny of the cryptocurrency market. These regulatory actions are a larger sign of this trend. In addition, Monero’s robust privacy features draw many illicit users. Yet ironically, these same features make it difficult for regulators to police money laundering, terrorism funding and other illegal activities.
Monero’s 11th birthday is a reminder that privacy coins continue to persist and thrive despite adversity. All of that said, as regulatory pressures continue to mount, the future for Monero and other privacy-focused cryptocurrencies makes their future questionable.
