Owing to the recent disappearance of Oasis in what is speculated to be an exit scam, Monero’s journey to the top has been abruptly cut short, and the cryptocurrency just might have to go back to the drawing board.
The Oasis Market was the first darknet market to accept Monero as a method of payment before AlphaBay Market eventually integrated the cryptocurrency, leading to a steady rise in its value.
Temporary Downtime of MyMonero Wallet
MyMonero, the web wallet for Monero, became unresponsive for a few days, and users reportedly were unable to withdraw funds.
The wallet which is run by XMR developer FluffyPony remained unresponsive as theories concerning the alleged exit scam became the topic of discussion on Reddit forums.
Premeditated Exit Scam
A Reddit user HolladsHerbs speculated that Oasis’s move to integrate Monero as a method of payment was self-serving seeing as they only wanted to pump up the value of the cryptocurrency in order to make a bigger profit when they made off with everyone’s money.
Oasis was allegedly running a Pump&Dump™ game where they bought large amounts of Monero shortly before they went offline.
Compared to the 150 bitcoins that were on the website at the time it went offline, the value of the Monero currency that went missing with the site’s disappearance possibly was much more.
AlphaBay Market Downtime Due to Software Upgrade
AlphaBay Market users were subjected to a scare shortly after the exit of Oasis when Monero services on the marketplace became unresponsive.
According to threads posted on Reddit, several users could not withdraw funds and efforts to get in touch with support proved futile.
AlphaBay later responded saying that they had solved the issue and that the unresponsiveness in the Monero transactions was due to an ongoing software upgrade.
Monero’s rise to recognition has been directly attributed to the AlphaBay Market integration of the cryptocurrency.
Monero’s Vulnerabilities Have Cost it Half Its Market Price
MyMonero has been the victim of repeated attacks which have resulted in the theft of millions of dollars worth of digital currency this year alone.
As it stands, it is still not clear whether the security vulnerabilities stem from the wallet itself or compromised user machines.
MyMonero.co, a fake site, pointed out that the vulnerabilities were present in the wallet itself although the XMR developer, FluffyPony, had nothing to do with it.
To the AlphaBay Market users, Monero provided financial anonymity over all other aspects, and this was a major reason why the digital currency took root so fast in the marketplace.
The privacy-oriented currency’s focus on providing anonymity over all other aspects was, however, the beginning of its decline. This and the fact that Monero only had one operational web wallet gradually led to a bubble which eventually popped, leaving XMR’s initial price down by about 50%.
The fall of Oasis has had a heavy negative impact on Monero’s progress as it has effectively cut off half of its ties to the dark web and wiped off most of progress the cryptocurrency had made towards achieving the same recognition as Bitcoin.
Nevertheless, it is touted that individuals with intricate knowledge on currency speculation will retain more or less the same standing towards the XMR despite the recent turn of events which have led to a significant drop in the price of Monero.
AlphaBay under Suspicion
Bloggers warned users to keep away from AlphaBay for a while especially after the short radio silence. Users are finding the “technical issues” pretext hard to bite and believe that AlphaBay Market may have been up to something.
Some of the speculations suggest that AlphaBay Market may have been compromised by law enforcement and is now in the process of trying to take down unsuspecting users before they catch on.
Personally, I wouldn’t pay much attention to these “bloggers.” They are just looking for headlines and click bait. Just make sure you take precautions to hide your identity.
Monero Deemed Untrustworthy
On the topic of Monero, the consensus is that AlphaBay Market users should stick to the tried and tested Bitcoin and leave the highly vulnerable Monero to sort out its issues first.
The repeated failure of the MyMonero wallet has led to its portrayal as nothing but an elaborate scam whose main selling point takes advantage of Bitcoin’s biggest weakness.
The fact that users do not generate the private keys to their transactions or even have access to the blockchains for verification has been used to paint Monero as a risky venture that dark web market users should generally avoid.