Monero (XMR) Tops Trend Charts Amid LocalMonero Halt: Sentiment

Monero is experiencing a significant uptick in social media discussions following the announcement of LocalMonero’s shutdown, according to data from Santiment.

This increased attention to Monero (XMR) coincides with ongoing government efforts to regulate privacy-focused assets.

LocalMonero closes

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 ending its exchange operations, immediately ceasing new registrations and posting ads. This led to an increase in discussions around Monero.

🗣️ #Monero is being discussed at an abnormally high rate because of the announcement that #LocalMonero the sun is setting as governments continue to clamp down $XMR and other privacy-focused assets.

🗣️#XRPLedger is also seeing a high rate of discussion due to $XRP price volatility,… pic.twitter.com/gaV3ywP2up

— Santiment (@santimentfeed) May 9, 2024

As of May 14, XMR trading will be halted and the website is scheduled to go offline on November 7, 2024. Users were advised to withdraw funds from their arbitrage bond portfolios before the deadline of November 7 to avoid possible confiscation of their assets. In addition, support services will remain available until the closing date.

Despite the shutdown, the LocalMonero team expressed confidence in the future of Monero. They highlighted the maturation of the ecosystem over the years, the upcoming release of Monero DEXs such as Haveno and Serai, and the development of new privacy features such as Full-Chain Membership Proofs (FCMP).

Privacy advocate “Seth For Privacy” lamented the shutdown in a post on X, describing it as an “incredibly sad day.” He noted the rise of LocalMonero as a KYC-free Monero ecosystem, and highlighted the absence of a direct fiat alternative to XMR. Although the platform did not provide a specific reason for its closure, users can speculate about the factors contributing to this decision.

Privacy coins under scrutiny

LocalMonero’s shutdown aligns with increased law enforcement pressure on crypto privacy projects. Many see this move as another setback for coins and privacy protocols, especially in light of Kraken’s decision to drop Monero support to 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 money laundering-related charges have fueled concern in the crypto community.

US prosecutors have adopted a broader interpretation of money-transmitting laws, targeting developers who may not directly control users’ assets. This approach has sparked fears of a broader crackdown on crypto privacy.

In response to these developments, several crypto privacy projects have closed or restricted access to US citizens. On the other hand, other privacy services such as Wasabi CoinJoin and Trezor Coinjoin have been shut down by their founders as regulatory pressure intensifies.

Monero (XMR) showed a mixed reaction to LocalMonero’s shutdown, witnessing buying and selling activity in the last 48 hours following the announcement. Currently valued at $129.27, it is showing a slight decline from today’s high of $133.70, indicating a 3% decline for the day at the time of writing.

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