Monero (XMR) Tops Trending Charts Amid LocalMonero ShutDown: Santiment
Monero is experiencing a significant uptick in discussions across social media following the announcement of LocalMonero’s closure, according to Santiment data.
This surge in attention on Monero (XMR) coincides with ongoing government efforts to regulate privacy-focused assets.
LocalMonero Shuts Down
LocalMonero, a peer-to-peer (P2P) exchange based on Monero (XRP), announced its closure via a blog post, citing a mix of internal and external factors. After nearly seven years of operation, the platform is winding down its exchange operations, immediately ceasing new sign-ups and ad postings. This triggered an increase in discussions around Monero.
#Monero is being discussed at an abnormally high rate due to the announcement that #LocalMonero is sunsetting as governments continue cracking down on $XMR and other privacy focused assets.
— Santiment (@santimentfeed) May 9, 2024
Beginning May 14, XMR trading will be halted, and the website is slated to be taken offline on November 7, 2024. Users were advised to withdraw funds from their arbitration bond wallets before the November 7 deadline to avoid potential forfeiture of their assets. On the other hand, support services will remain available until the closure date.
Despite the closure, the LocalMonero team expressed confidence in Monero’s future. They highlighted the ecosystem’s maturation over the years, the coming launch of Monero DEXs like Haveno and Serai, and the development of new privacy features such as Full-Chain Membership Proofs (FCMP).
Privacy advocate “Seth For Privacy” lamented the closure in a post on X, describing it as an “incredibly sad day.” He noted LocalMonero’s rise as a no-KYC Monero ecosystem, emphasizing the absence of a direct fiat-to-XMR alternative. While the platform did not provide a specific reason for its closure, users can speculate on the factors contributing to this decision.
Privacy Coins Under Scrutiny
LocalMonero’s closure aligns with the increased pressure from law enforcement on crypto privacy projects. Many view this move as another setback for privacy coins and protocols, particularly in light of Kraken’s decision to cease Monero support for customers in Ireland and Belgium in April.
The recent arrests of the founders of Bitcoin mixer Samourai Wallet and Tornado Cash developer Roman Storm on charges related to money laundering have fueled concerns within the crypto community.
United States prosecutors have adopted a wider interpretation of money-transmitting laws, targeting developers who may not directly control user assets. This approach has sparked fears of a wider crackdown on crypto privacy.
In response to these developments, several crypto privacy projects have either shut down or restricted access to U.S. citizens. On the other hand, other privacy services like Wasabi CoinJoin and Trezor Coinjoin have been shut down by their founders as the regulatory pressure intensifies.
Monero (XMR) exhibited a mixed reaction to the closure of LocalMonero, witnessing both buying and selling activities in the past 48 hours post-announcement. Currently valued at $129.27, it shows a slight decline from today’s peak of $133.70, indicating a 3% decrease for the day as of the time of writing.
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