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The original was posted on /r/monero by /u/pet2pet1982 on 2024-02-07 15:31:14.
Hi friends! We all know a long story about Binance cheating on Monero price and withdrawal suspension for years. Yesterday there was our win!
There is no place for huge centralised entity under KYC censorship of any authority in the true cryptocurrency world. Satoshi Nakamoto was dreaming exactly about such a future when he had created Bitcoin in 2009.
But Bitcoin has become a victim of total KYC censorship due to its transparent blockchain nowadays. Furthermore, dirty Bitcoins are now contagious and can infect clean Bitcoins right during normal trading process over its blockchain.
Meanwhile, our Crypto university must be end-to-end censorship-resistant and fully-decentralised from a very fundamental point of view. There is no trade-off, no compromise. Financial privacy and presumption of no guilty is a fundamental human right we must struggle for.
Monero has achieved decentralisation in most fields. Especially we should mention ASIC-resistant mining algorithm RandomX and fully functioning decentralised mining software P2Pool. Note, Bitcoin community has failed their p2pool adoption among the miners.
The only great problem that remained in the Binance epoch, is price manipulation and suppression of every privacy coin on each huge centralised exchange. Traditionally, top target was Monero as the most widely used in practice fungible and untraceable cryptocurrency.
This kind of malicious activity is possible only on huge centralised entities that have deep order books and large number of customers interested in speculation only, without regular withdrawals of their funds.
That users do completely rely on a Binance custodial wallet, which, in turn, is a fundamentally anti-Crypto approach.
Monero is a privacy coin, its blockchain can’t be traced and investigated against transactions that make price manipulations. Thus, Binance has generated a lot of “paper” non-existent Monero coins that end-user can’t withdraw and broadcast to the network.
Due to private nature of Monero blockchain, we can’t prove that evidence directly. But most customers did encounter withdrawal suspensions from Binance many many times, especially if they tried to withdraw large enough amount of Monero.
Thus, while we observe, how Bitcoin price is rising to the moon for many years on average, Monero price is being sticked around some $150, and even dropped last time.
Meanwhile, did you know, that total Monero coin supply remains slightly less than Bitcoin supply till year 2040?! Almost whole 16 years to wait for! Despite tiny tail emission, designed to reward miners and keep transaction fees ultimately below 0.00005XMR forever.
So, till year 2040, Monero and Bitcoin emission are fine-tuned to each other with high precision. Why then Bitcoin costs some $43000 but Monero costs only some $130?!
Because and only because price manipulation on huge centralised exchanges does take a place.
Theory of trading shows us, price of an asset can find equilibrium at arbitrary point, given sell flow per unit time equals to buy flow per unit time.
But what should be a honest price?
Metcalfe proposed, the Monero's supposed fair price is judging by the number of transactions it has each day on. Higher transaction count means the coin is being increasingly used, and since Metcalfe's Law proposes that more information being exchanged in a network means the network itself should be worth more, it also means the coin should increase in price. This was calculated as "how much Monero should be worth if it was a part of Bitcoin's network?" The answear is that Monero should be worth as much as its transactions represent as a percentage of Bitcoin's own transactions, but considering both coins' supplies.
Look at the Metcalfe's Law chart:
You can see, Metcalfe's Law worked precisely perfect till November 2017, when Binance had listed Monero. Then, you can see 1 year, till end 2018, where Metcalfe's Law worked OK, but much less perfectly. And after 2019, the devastating hell had begun. So, Binance had started to generate “paper” non-existent Monero that can’t be withdrawn. That’s why we since observe only Monero price stagnation and suppression.
Today, honest Monero price, according to Metcalfe's Law, should be some $1500.
THE STRATEGY.
For official Monero site maintainers, r/Monero moderators and all the related social media:
- Mention, highlight and stick up two useful aggregators of mostly non-KYC instant services and methods where end-user can easily swap Monero to/from other coins, bypassing huge centralised entities like Binance:
,
.
IT IS VERY IMPORTANT.
For small instant exchanges:
- Accumulate your own Monero liquidity pool and order book till February 20, so you can serve end-users without dependance on large centralised exchanges.
- Set your business to respect the Metcalfe's Law Monero price $1500. Monitor and compare everyday transaction flow on Monero blockchain to Bitcoin blockchain. Adjust Monero price accordingly. Adjust your fees to encourage exchange process at higher prices.
For merchants.
- Accept Monero directly if your jurisdiction allows that. You can then maintain your own instant Monero exchange service and take profit from the fees.
- Otherwise, maintain TWO separate services: On 1st one, operate only in the traditional financial field, with fiat, bank transfers, VISA, Mastercard AND GIFT CARDS. On 2nd one, operate only with Monero and other cryptocurrencies and sell ONLY GIFT CARDS for cryptocurrencies, NOT YOUR PRODUCTS.
For developers:
- Build, test, deploy and maintain either Monero atomic swaps or some DEX instances. Follow the Metcalfe's Law, encourage price at $1500 like written above for small instant exchanges.
For customers:
- Abandon large centralised exchanges at all. Withdraw all your funds to your own non-custodial wallets. Remember: not your private keys - not your money. Use either small instant services, atomic swaps or DEXes.
CONCLUSION.
Till February 20, accumulate your liquidity pools.
After February 20, follow the Metcalfe's Law on Monero’s honest price at $1500.
Adjust your fees to encourage swaps at the higher prices, resist the lower prices.
Always: add sticky prominent hyperlinks on various instant services and methods, how to exchange Monero without KYC, to all your social media.
