According to the news in Decrypt, community members have a reaction to what they see as a lack of transparency on Monero. On the eighth anniversary of Monero's launch, central exchanges are among those allegedly suspending XMR withdrawals and misrepresenting reserves.
Seth Simmons, an information security engineer and Monero follower, was one of those who shared on the subject on Twitter.
"Looking more and more like exchanges are paper trading #Monero and lying about how much they have to customers. Opt out, get those keys off exchanges and actually own your $XMR:"
A Reddit user named Bawdyanarchist also posted on the site, “We are withdrawing XMR from exchanges.” he wrote. The fact that this post received more than 2,200 votes created the perception that the details of the plan will be shaped by this move.
Bawdyanarchist wrote that Monero's sophisticated ledger technology allows exchanges to misrepresent reserves and sell XMR they don't actually own, and said they think exchanges can do this because most Monero holders won't try to withdraw their funds.
Now, members of the Monero community seem to be coordinating efforts to pull XMR coins from as many exchanges as possible to see if they're right.
What is Monero?
Monero (XMR) is a private, secure and untraceable cryptocurrency that emerged as a result of a ByteCoin fork on April 18, 2014. As an open-source and privacy-focused digital currency, it was built on a blockchain that was designed to be non-transparent. With Monero, the user is said to be in complete control of their money and privacy, as no one else can see their balances or transactions.
Monero works as a privacy-focused currency using circle signatures and hidden addresses. A ring signature is an anonymous digital signature that keeps the signer confidential. Stored addresses are randomly generated addresses that are generated for single use during each transaction. Such addresses also hide the destination address of the transaction and the identity of the recipient. Ring confidential transactions (RingCT) also hide the amount of the transaction. This feature was added in January 2017 as a mandatory feature for all transactions on the Monero network. Monero is based on the CryptoNote protocol and, unlike Bitcoin, works with dynamic block sizes and fees.