Monero, a cryptocurrency that attempts to distinguish itself by obscuring sender, recipient, and amount information for every transaction has been performing poorly this past month. Inside Bitcoins offers an analysis.
While Monero is looked at highly as a cryptocurrency, this hasn't reflected the returns investors are hoping for as of late. Since the April pullback, during which Monero did not fare as impressively as competing cryptocurrency, Monero has been growing slower than other coins on the market.
These growth problems have been reflected in Monero's lead developer, Ricardo Spagni, announcing he is reducing his leadership role in Monero. Spagni contests the notion that he is leaving the project outright.
"Monero’s lead developer Riccardo “fluffypony” Spagni announced that he was planning on moving away from many leadership roles in the community. Usually, when someone in a leadership position exits, it raises questions about the future of the project." https://t.co/qeLPvJycfJ— Crypto Coffee ☕ (@Kristen_Colwell) June 16, 2018
Much of Monero's traffic comes from ASICs developed specifically for their algorithm, which Monero considers a threat to its market diversity, monopolizing mining ability to a few sources which outperform competitors CPUs and GPUs. Furthermore, because Monero's platform is developed with privacy in mind, it is especially attractive to hackers and botnets, who use other people's hardware to mine.
One potential source of Monero's problems have been the fact that in their recent April upgrade, Monero changed their algorithm such that it is more resistant to the use of ASICs and botnets. Because much of Monero's mining came from these two sources, the upgrade halfed Monero's hashrate down to 460 MH/sec. It is worth noting that a recent study found that botnets made up 5% of Monero's traffic, though most hacked wallets had fewer funds than many expected, limiting the actual impact they had on Monero's market overall.
Monero does have developments coming down the pipeline, including a Monero GUI, and network upgrades which should reduce Monero's transaction size and fees.
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