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Monero (XMR) is a cryptocurrency that emphasizes anonymity, achieving complete concealment of transaction information through technologies like ring signatures and stealth addresses. It once became a popular currency for dark web transactions and fund transfers, attracting many investors seeking privacy. However, this anonymity has also become a 'shield' for manipulators to harvest retail investors, with the core strategy involving high control and lack of transparency.
Due to the inability to trace transactions, a small number of large holders can quietly concentrate their positions, manipulating the coin price through repeated low buying and high selling. In the initial phase of a market surge, manipulators will take advantage of the anonymity to accumulate large quantities while spreading false information in communities and forums, such as 'positive policies for anonymous coins' and 'institutions heavily investing,' to attract retail investors to follow suit. Once the coin price is pushed to a high level, manipulators will sell off large amounts through off-market agreements or by splitting accounts, triggering a cliff-like drop in the coin price.
The more challenging aspect is that the anonymity mechanism leaves retail investors with no means to defend their rights. Unlike transparent public chains that can trace the flow of funds, the transaction chain of Monero is completely concealed, making it impossible for investors to confirm the identity of the manipulators or provide evidence of manipulation, leaving them to passively bear losses. Furthermore, its anonymity also breeds illegal activities such as money laundering and fraud, which have repeatedly drawn global regulatory attention. When negative policies are implemented, it further exacerbates coin price volatility, trapping retail investors in a vicious cycle of chasing highs and forced selling.
The technical advantages of Monero have been maliciously exploited, becoming tools for manipulators to harvest profits, which also confirms the brutal reality that 'anonymity ≠ security' in the crypto space. Ordinary investors should be wary of such unregulated and high-risk controlled currencies.
Due to the inability to trace transactions, a small number of large holders can quietly concentrate their positions, manipulating the coin price through repeated low buying and high selling. In the initial phase of a market surge, manipulators will take advantage of the anonymity to accumulate large quantities while spreading false information in communities and forums, such as 'positive policies for anonymous coins' and 'institutions heavily investing,' to attract retail investors to follow suit. Once the coin price is pushed to a high level, manipulators will sell off large amounts through off-market agreements or by splitting accounts, triggering a cliff-like drop in the coin price.
The more challenging aspect is that the anonymity mechanism leaves retail investors with no means to defend their rights. Unlike transparent public chains that can trace the flow of funds, the transaction chain of Monero is completely concealed, making it impossible for investors to confirm the identity of the manipulators or provide evidence of manipulation, leaving them to passively bear losses. Furthermore, its anonymity also breeds illegal activities such as money laundering and fraud, which have repeatedly drawn global regulatory attention. When negative policies are implemented, it further exacerbates coin price volatility, trapping retail investors in a vicious cycle of chasing highs and forced selling.
The technical advantages of Monero have been maliciously exploited, becoming tools for manipulators to harvest profits, which also confirms the brutal reality that 'anonymity ≠ security' in the crypto space. Ordinary investors should be wary of such unregulated and high-risk controlled currencies.
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