logo
Monero's explosive surge: Rising privacy concerns or just market manipulation?: By Prakash Bhudia

Monero's explosive surge: Rising privacy concerns or just market manipulation?: By Prakash Bhudia

Finextra05-05-2025

Monero (XMR), the crypto world's top privacy advocate, stunned traders on Monday with a remarkable 50% leap - an eye-watering 21% spike within just one hour.
Source: Deriv X
As analysts scrambled to identify the catalyst behind Monero's dramatic surge, social media erupted with speculation, humorous memes, and theories ranging from institutional panic-buying to increased privacy concerns - or perhaps something more questionable.
Bitcoin hack fuels the fire
Adding intrigue, blockchain analyst ZachXBT disclosed a significant crypto mystery involving over 3,520 Bitcoin (BTC) - approximately $330.7 million - swiftly converted into Monero via multiple rapid exchanges. Monero's renowned privacy protocols made it the perfect, albeit costly, option for hackers aiming to conceal their activity.
Interestingly, converting such a substantial amount of BTC into XMR likely led to significant market "slippage," where transactions move prices unfavorably. Traders estimate the hackers may have inadvertently lost up to $66 million due to this liquidity squeeze. A costly cover-up, indeed.
Futures market frenzy raises red flags
Simultaneously, the derivatives market erupted with activity. Open interest for Monero futures surged unexpectedly, reaching $35.1 million - far exceeding usual levels.
Source: Coinglass
Curiously, around $11 million was already positioned ahead of Monero's price spike, sparking suspicion about possible market manipulation. Seasoned crypto traders pointed to echoes of previous schemes, notably the infamous Mango Markets incident, where savvy traders exploited markets for substantial profit.
Privacy coin popularity: Monero vs. Zcash
Despite this volatility, privacy coins such as Monero and Zcash (ZEC) remain attractive to investors prioritizing anonymity. Monero's uncompromising approach mandates total privacy, catering to users seeking absolute discretion. In contrast, Zcash offers selective anonymity, providing flexibility to its users.
Future prospects for privacy coins are increasingly positive. Changelly forecasts Monero's value could surge beyond $500 by 2027 - a compelling 167% increase from today's price near $194. Meanwhile, Zcash, boosted by recent updates and market sentiment, shows significant promise, with CoinCodex projecting prices between $7.26 and $39.38 by 2030.
Whether driven by genuine privacy demands or darker market exploits, Monero's latest rally underscores crypto's enduring drama.
Monero technical outlook: Ready to jump into privacy coins?
Suppose this rollercoaster has you thinking about joining the privacy crypto bandwagon.
At the time of writing, XMR is holding at a critical resistance level of $274.48, and the daily chart shows a bullish bias. The 9-ema moving average crossing above the 21-ema moving average adds to the bullish narrative. However, the volume bars contracting indicates that the buying pressure is waning - hinting at a potential reversal.
Source: Deriv X
Disclaimer
The information contained within this article is for educational purposes only and is not intended as financial or investment advice.
The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance.
The information may become outdated.
We recommend you do your own research before making any trading decisions

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BitFuFu's record-reaking output demonstrates mining dominance
BitFuFu's record-reaking output demonstrates mining dominance

Coin Geek

time7 hours ago

  • Coin Geek

BitFuFu's record-reaking output demonstrates mining dominance

Getting your Trinity Audio player ready... Singapore-based BitFuFu Inc. (NASDAQ: FUFU) announced a record-breaking performance in May 2025, achieving a hash rate of 34.1 exahashes per second (EH/s) and mining 400 BTC, a 91% increase from April. This surge, reported on June 4, 2025, underscores BitFuFu's growing dominance in the block reward mining sector, driven by its cloud-mining platform, strategic expansions, and efficient hardware deployments. Despite financial challenges in Q1 2025, the company's operational success highlights its resilience and adaptability in a competitive landscape. This article explores the factors behind BitFuFu's record output, its implications for the mining industry, and the challenges it faces moving forward. BitFuFu's May performance, detailed in a company press release, marks a 20.5% month-over-month hash rate increase, with 357 BTC produced by cloud-mining clients and 43 BTC from self-mining operations. The company's total power capacity reached 651 megawatts (MW), a 15% jump from April, spread across facilities on five continents. This growth was fueled by the full-month utilization of additional mining hardware deployed in late April, primarily Bitmain's S21 series miners, known for their efficiency at 19.1 joules per terahash (J/TH). BitFuFu also added more machines in late May, setting the stage for potential gains in June. The company's cloud-mining platform, which accounts for over half its revenue, saw its user base grow to 615,559 registered users by May's end, reflecting strong demand for accessible mining solutions. Several factors contributed to BitFuFu's record-breaking output. First, strategic partnerships and hardware acquisitions played a pivotal role. A January 2025 agreement with Bitmain for 80,000 S21 miners, potentially adding 16 EH/s, bolstered BitFuFu's capacity. The company also expanded its power infrastructure, including a majority stake in a 51 MW facility in Oklahoma acquired in February 2025, leveraging low-cost electricity to enhance profitability. These moves align with BitFuFu's goal to secure 1 gigawatt (GW) of power capacity by 2026, as stated by CEO Leo Lu during the Q4 2024 earnings call. Second, the rising BTC price, averaging $104,000 in May, incentivized miners to scale operations, with BitFuFu capitalizing by selling 178 BTC to boost liquidity while retaining 1,709 BTC in its treasury. The cloud-mining model, BitFuFu's primary revenue driver, has been a key differentiator. By allowing users to lease mining power without managing hardware, BitFuFu has democratized access to BTC mining, attracting over 600,000 users globally. The launch of BitFuFuOS, a software solution optimizing mining output by up to 20%, further enhances its appeal to both retail and institutional clients. However, BitFuFu's success comes amid financial challenges. Its Q1 2025 earnings, reported on June 5, 2025, revealed a revenue drop to $78 million from $144 million in Q1 2024, driven by expired hashrate contracts and hardware relocations. The company posted a $17 million net loss and negative $11 million adjusted EBITDA, impacted by a $19.4 million unrealized loss on digital assets. Despite these setbacks, analysts like H.C. Wainwright maintain a 'Buy' rating with a $7 price target, citing BitFuFu's operational growth and long-term BTC exposure. The company's stock, trading at $3.63 in early June, has faced volatility, down 20.3% this quarter, reflecting broader market uncertainties like potential U.S. tariffs on mining hardware. The record output has broader implications for the BTC mining industry. BitFuFu's 34.1 EH/s contributes significantly to the global hash rate, which hit 700 EH/s in June 2025, enhancing network security. However, the energy-intensive nature of mining—BitFuFu's 651 MW capacity alone rivals small cities—raises environmental concerns. While the company has not disclosed its energy mix, the industry's shift toward renewables (59% globally, per the Bitcoin Mining Council) could pressure BitFuFu to prioritize sustainable sources. Additionally, rising mining difficulty and the 2024 Bitcoin halving, which reduced block rewards to 3.125 BTC, challenge smaller miners, favoring large-scale operators like BitFuFu. Looking ahead, BitFuFu's plans to expand in the U.S., Canada, and other regions, coupled with its focus on vertical integration, position it for continued growth. However, regulatory risks, such as Russia's recent crackdown on illegal mining or Pakistan's International Monetary Fund (IMF) scrutiny, highlight the need for stable policies. BitFuFu's ability to navigate cash burn, maintain user growth, and leverage efficient hardware will be critical to sustaining its trajectory. For now, its May 2025 performance cements its role as a major player in the evolving block reward mining landscape. Watch: Gorilla Pool provides end to end solution for ASIC mining title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> BitFuFu BitFuFuOS Block Reward Mining BTC Cloud Mining

99.9% of Meta shareholders reject BTC treasury proposal
99.9% of Meta shareholders reject BTC treasury proposal

Coin Geek

time20 hours ago

  • Coin Geek

99.9% of Meta shareholders reject BTC treasury proposal

Getting your Trinity Audio player ready... Meta (NASDAQ: META) shareholders have overwhelmingly rejected a proposal to allocate a portion of the company's cash into BTC despite a push by some Wall Street players and the Trump administration's support for BTC treasuries. In a recent Securities and Exchange Commission (SEC) filing, the social media giant revealed that the proposal only received 3.9 million votes in support, with over 4.98 billion votes rejecting it. Of the 14 proposals tabled before the investors, BTC treasury received the least support as Meta investors bucked a trend by some companies in the United States and beyond to hold BTC as a hedge against inflation. The overwhelming rejection indicates that even founder Mark Zuckerberg, who has been described as a digital asset enthusiast, voted against the proposal. While Zuckerberg only holds a 14% stake in the company, he controls 61% of the voting power, giving him a de facto veto on all major corporate motions. The other three largest shareholders are Vanguard, BlackRock (NASDAQ: BLK), and Fidelity, who control 8% of the voting power combined. Despite BlackRock and Fidelity being the two largest BTC exchange-traded fund (ETF) providers, they also rejected the proposal. The proposal was introduced in January by Ethan Peck, who works for the National Center for Public Policy Research, a Washington-based conservative think tank. In his proposal, Peck claimed that Meta was losing 28% of the value of its cash assets to inflation and suggested BTC as the best solution. He also subtly accused Zuckerberg and Marc Andreessen—a Meta director and the founder of the BTC investor Andreessen Horowitz—of denying Meta investors a chance to enjoy market-beating returns. 'Do Meta shareholders not deserve the same kind of responsible asset allocation for the Company that Meta directors and executives likely implement for themselves?' Peck submitted similar proposals to Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN). Microsoft shareholders voted against the proposal last December, with the tech giant's board describing it as 'unwarranted.' Even a 3-minute presentation to the board by Strategy founder Michael Saylor, in which he claimed Microsoft had lost $200 billion in five years by not investing in BTC, couldn't sway them. The $86 billion BTC treasury campaign While Meta rejects the proposal, over 100 other listed firms have aped in. According to one platform tracking the BTC treasuries, 124 public companies now hold 818,000 BTC, worth $86 billion at current prices. On Friday, Japanese firm Metaplanet (NASDAQ: MTPLF) announced it would raise $5.4 billion in 'the largest stock acquisition rights issuance in Japan' to purchase more BTC. *Metaplanet Issues 555 Million Shares of Moving-Strike Warrants, Expected Proceeds: ~$5.4b to Buy Additional $BTC; Largest Stock Acquisition Rights Issuance in Japan Capital Markets History & 1st Moving Strike Warrant Ever Issued Above Market* — Metaplanet Inc. (@Metaplanet_JP) June 6, 2025 Strategy (NASDAQ: MSTR) remains the market leader, holding 580,000 BTC, worth $61 billion (its overall market cap is $104 billion; BTC holdings are worth 60% of its value). The company has shifted its business model from being a software firm to a BTC investment vehicle. Others have joined the bandwagon. Metaplanet, for instance, now fully identifies as a 'Bitcoin Treasury Company,' veering off from its original real estate and hospitality business. The risks abound. For starters, these companies use convertible notes to raise the money to purchase the BTC. If the price of BTC and their stock prices dip, the holders of the convertible notes would demand their cash back, which would force these companies to dump their BTC, kickstarting a spiral that further decimates the digital asset's price. B2B payments surge 288% as stablecoins rise continues Elsewhere, a new report has revealed that real-world stablecoin payments are growing steadily, with business-to-business (B2B) payments surging 288% year over year. The report by blockchain analytics firm Artemis revealed that B2B accounted for $3 billion in stablecoin payments, the largest share ahead of peer-to-peer (P2P) at $1.5 billion and card at $1.1 billion. Source: Artemis USDT dominates stablecoin transfers, accounting for 86.1% of the payments in February and 90% in January, with USDC sitting second. In some economies like Spain, Germany, Japan and South Korea, its dominance topped 98%. The USDT dominance in payments far exceeds its share of the total stablecoin market cap, which stands just over 60%. The report further revealed that the United States accounts for nearly 20% of all stablecoin payments, the highest share globally. However, Singapore was a surprisingly close second, accounting for nearly twice as much as third-placed Hong Kong. Japan and the United Kingdom complete the top five. Additionally, the Singapore-China corridor emerged as the most active globally. However, the next seven largest corridors all involved the U.S. 'Stablecoins fulfill the vision that a generation worth of fintech entrepreneurs having been building towards – collapsing the gap between antiquated financial rails and our digitally native lives through the use of fully programmable internet money,' commented Rob Hadick, whose Dragonfly' crypto'-focused VC also contributed to the report. Watch: Richard Baker on engineering a smarter financial world with blockchain title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">

Crypto's hottest new trend: publicly traded companies buying bunches of bitcoin
Crypto's hottest new trend: publicly traded companies buying bunches of bitcoin

The Independent

time2 days ago

  • The Independent

Crypto's hottest new trend: publicly traded companies buying bunches of bitcoin

It's one of crypto's hottest trends: publicly traded companies buying bitcoin and then buying even more. President Donald Trump's media company just announced a plan to raise $2.5 billion to buy bitcoin, joining a growing number of so-called 'bitcoin treasury companies' as the world's most popular cryptocurrency hits all-time highs. The companies buy bitcoin for different reasons: Some hold it as a hedge against inflation or to signal support for the cryptocurrency industry, while some firms have made using debt and stock sales to buy bitcoin their primary business strategy. 'The world at large has no idea what's happening and they're in for a big shock,' Dylan LeClair, an executive at the Japan-based Metaplanet, which recently went from being a budget hotel firm to a bitcoin treasury company, said at a recent crypto conference. 'This is a one-way train, nothing is going to stop this.' The massive increases in some firms' stock price may seem to validate LeClair's bravado, but there are plenty of warnings that a downturn in bitcoin's prices could lead to large selloffs. Here's a look at bitcoin treasury companies by the numbers: 582,000 That's how many bitcoins owned by MicroStrategy – the undisputed goliath of bitcoin treasury companies. With nearly 3% of the total bitcoin supply, MicroStrategy owns more bitcoins than every other bitcoin treasury company combined. It also owns more bitcoin than every nation state combined, according to the tracking site Now called Strategy, the software company first started buying bitcoin in 2020 with reserve cash. Now, its software business is a small part of a perpetual bitcoin-buying machine that uses a variety of strategies – like selling shares or issuing debt – to keep growing its bitcoin holdings. More than 3000% That's how much MicroStrategy's stock price has increased in the last five years, compared to around 1,000% gain in bitcoin and the 1,500% jump for chipmaker and stock market darling Nvidia during that same period. The company's success has boosted the profile of MicroStrategy's founder and chairman, Michael Saylor, who has visited Trump at Mar-a-Lago and the White House while becoming bitcoin's enigmatic high priest. 'Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy,' Saylor said in a social media post. Saylor's success has also spawned many imitators. 'It's kind of shocking … that it took someone four years after Michael Saylor started doing it to finally do it and pull the trigger and now it feels like everyone's pulling the trigger,' said Eric Semler, the chairman of Semler Scientific, a healthcare company that started acquiring bitcoin last year. $90,000 That's the average purchase price of bitcoin for half of the 61 publicly traded bitcoin strategy companies, excluding bitcoin mining companies and bitcoin exchange-traded funds, according to a recent analysis by Standard Chartered. Geoff Kendrick, the bank's head of digital assets research, said in the report that restrictions on investors buying bitcoin directly help explain the popularity of bitcoin treasury companies, as their stocks can serve as bitcoin proxies. But as crypto becomes more mainstream, the case for investing in bitcoin treasury companies becomes weaker, Kendrick said. He added that bitcoin's volatility could force some newer bitcoin treasury companies to sell their holdings to satisfy their debts if it falls under the purchase price. 'The question then becomes, how much pain can companies withstand before being forced to sell their BTC?' Kendrick said, referring to the symbol for bitcoin. Triple digits That's how much of a one-day percentage increase in stock prices firms have seen after recently announcing plans to hold other types of cryptocurrencies as corporate treasuries, highlighting how the appetite for such companies extends beyond bitcoin. SharpLink Gaming, a gambling marketing firm, saw its share price increase by more than 400% after it announced plans to buy up to $425 million in Ethereum, the second most popular form of cryptocurrency. And crypto firm Upexi saw its stock price soar more than 300% after it announced plans to buy $100 million of Solana, a cryptocurrency popular in the meme coin ecosystem.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store