Earlier this year news of a hard fork on Monero (XMR) rocked the crypto movement as a new coin, MoneroV (XMV) is set on emerging. With the hard fork approaching, XMR has seen a soar in its prices as more investors look forward to the airdrop of new XMV coins later this month. The price of one XMR coin currently trades at $288 according to Coinmarketcap signifying an 8% increase from last month’s cryptoburst. This mid cap sector on DigitalassetsDB. The two are the only coins in the top ten largest coin that closed Friday in the green as others made day-to-day losses. However, is the new MoneroV coin really worth all the hustle, time and money?
What is MoneroV?
MoneroV platform is a community-led hard fork on the Monero cryptocurrency aiming at solving Monero’s blockchain problems of scalability and privacy features. This will be done by creating a totally decentralized platform that allows its users to develop, enhance and simplify use of XMV to create a new scalable blockchain.
XMV offers a privacy to the user, is untraceable, immutable and secure blockchain fork that will allow faster, more anonymous transactions.
Who will receive the XMV tokens?
According to MoneroV website, anyone holding Monero (XMR) on the day of the fork, presumably mid-March, will be entitled to a 1:10 ratio of airdrops of XMR to XMV. In essence, every XMR coins you hold is worth 10 XMV coins. After the fork, all Monero coin holders will receive the tokens in their various wallets given that the Monero wallet provider accepts the new XMV coins.
“MyMonero will definitely not support any non-native forks of Monero — including MoneroV. This means there will be no support for obtaining access to funds or airdrop coins on such non-native forks.”
-Monero team statement on Medium
Why this hard fork is labelled a scam
- Currently no exchanges have confirmed accepting the coins on their platforms. However, some ‘medium-large’ cryptocurrency exchanges are expected to review the blockchain and determine on the future of XMV. This casts a doubt on the future of XMV given many owners of XMR will not be able to access the coin.
- The Monero team, led by Paul Shapiro, issued a statement on the partner’s Medium page last week Friday confirming that they will not be part of any fork on Monero. Hard forks are generally not accepted by the original developers for obvious reasons but this time it is different. The creators and developers of MoneroV (XMV) remain unknown till this day raising questions of a scam waiting to happen.
- The date is still not set for the hard fork which will happen at block 1564965 giving MoneroV miners a chance to mine XMV. This is estimated to happen on March 18th, when the Monero developers also meet for their bi-annual developer’s update that will focus on mining centralization around the same period with the proposed hard fork. Why should such events coincide even when developers don’t agree with the fork?
- The biggest red flag remains the disclosure of your private keys in order to obtain an airdrop that is aimed at increasing the speculation of MoneroV coin and cause its price to rise. The MoneroV team claims to release the specified coins some days after the hard fork. Basically, two scams are in play here.
First, your private key is used directly with the MoneroV blockchain network which would lead to the wallet recording the private code and thereafter hackers stealing your XMR. Secondly, the scammers (if they are) may obtain your details and expose them on the blockchain as opposed to the parent chain which is safe, anonymous and private.
All should be taken into account before investing in any new cryptocurrency or ICO. Do your own research. This may well be the start of a scam and Monero developers will now have to tread carefully as this hard fork may looks to doom the prospects of Monero (XMR) hitting $500 by the end of 2018.