A coordinated effort that saw users withdraw their Monero (CRYPTO: XMR) from exchange wallets has been dubbed the “Monerun.”
What Happened: Monero holders orchestrated a bank run to test cryptocurrency exchanges' reserves on Monday, which also marked the digital coin's eighth anniversary.
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The idea was first mooted by Reddit user “bawdyanarchist” on the coin’s dedicated subreddit.
“April 18th. We're withdrawing XMR from exchanges. Any exchange that hasn't disabled withdraws (which many of them have already), we're pulling our funds,” the user said in a post last week.
“Monero's obfuscated ledger has enabled a number of exchanges to misrepresent their reserves, and sell XMR that they don't actually have.”
See Also: HOW TO BUY MONERO (XMR)
Unlike Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), the privacy-focused Monero anonymizes transactions to a greater degree and makes it difficult to ascertain whether crypto exchanges hold the XMR reserves they claim.
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Looking more and more like exchanges are paper trading #Monero and lying about how much they have to customers.
— Seth For Privacy (@sethforprivacy) April 14, 2022
Opt out, get those keys off exchanges and actually own your $XMR:https://t.co/L9dCWRk4Na https://t.co/wqyfh84SEN
“The Monero community has come to a loose consensus that many exchanges don't actually hold all of the Monero which customers have purchased,” bawdyanarchist said on Reddit.
“The exchange just sold a promise, not a real asset.”
If the Reddit hypothesis is true, the planned bank run would likely force exchanges to buy XMR to fund simultaneous user withdrawals.
Oh no. What an unexpected event 🤣🤣 Have a good day #bigshortbets🐋 family. #monero #monerun https://t.co/qiX8aQlyoO pic.twitter.com/ZnkwaKs27W
— bigshortbet$ news (@bigsb_news) April 18, 2022
XMR surged as much as 15% on Monday, even as Bitcoin and Ethereum were down more than 4%.
Price Action: According to data from Benzinga Pro, XMR hit an intra-day high of $267.94. At press time, the coin was trading at $263 with a trading volume of $438 million.