Darknet markets are shifting back to using Bitcoin as their main cryptocurrency due to challenges with privacy coins like Monero. Eric Jardine from Chainalysis highlighted that as some major exchanges stopped supporting Monero, Bitcoin’s usage increased significantly. Previously, many darknet markets had favored Monero for its privacy features, but its removal from exchanges made it less accessible. The drop in Monero transactions reflects this trend. Despite concerns about illicit activity, Jardine pointed out that such transactions make up a tiny fraction, around 0.14%, of all crypto transactions. Law enforcement focuses more on markets involved in the dangerous fentanyl trade, which draws significant attention.
Darknet Markets Shift Back to Bitcoin Amid Privacy Coin Challenges
Darknet markets are making a notable shift back to Bitcoin (BTC) as their primary cryptocurrency, as reported by Eric Jardine, a cybercrime research lead at Chainalysis. This change is largely due to increasing liquidity issues and accessibility challenges with privacy-focused coins like Monero (XMR).
In a recent interview, Jardine pointed out that after major exchanges began delisting Monero, there was a significant uptick in Bitcoin inflows to these markets. Many of these marketplaces had previously relied heavily on Monero or used it alongside Bitcoin. However, the removal of XMR from major platforms has resulted in diminished usage and attractiveness.
Key Exchanges Remove Monero
In late 2023, OKX removed Monero along with other privacy-oriented tokens such as Dash (DASH) and Zcash (ZCH). Additionally, Binance announced plans to delist Monero in February 2024, citing a shift in industry standards as a primary reason. The impact of these decisions is evident, with data from BitInfoCharts showing that daily Monero transactions have halved compared to the previous year.
Jardine emphasized the importance of liquidity and accessibility for cryptocurrencies to function effectively as mediums of exchange. He also reassured that while illicit transactions involving cryptocurrencies do occur, they represent only about 1% of the total activity in the sector. Therefore, branding all cryptocurrency negatively due to these instances is misleading and counterproductive.
Law Enforcement Focus on Darknet Markets
Law enforcement agencies have heightened their focus on darknet markets, especially those involved in the trade of illicit drugs like fentanyl. The U.S. Department of the Treasury recently sanctioned multiple crypto wallets tied to the Nemesis online Market due to its connection with the fentanyl trade.
In conclusion, the return to Bitcoin by darknet markets highlights the evolving landscape of cryptocurrency usage in illicit activities. With rising challenges for privacy coins, it remains to be seen how this will affect the broader cryptocurrency Market in the future.
Stay tuned for more updates on cryptocurrencies and their role in various sectors.
Tags: Bitcoin, Cryptocurrency, Darknet Markets, Monero, Cybercrime
What happened with Monero on Binance?
Monero was recently delisted from Binance, which means you can no longer buy or sell it on that exchange. This has caused some users on darknet markets to consider switching back to Bitcoin (BTC) for their transactions.
Why are darknet markets interested in Bitcoin again?
With Monero off Binance, many dark web users are returning to Bitcoin because it is still widely accepted and easy to use. Bitcoin’s popularity means that it has a bigger user base on these markets.
What are the benefits of using Bitcoin instead of Monero?
Bitcoin is accepted by more platforms and exchanges, making it easier to use. While Monero offers privacy features, Bitcoin has a larger Market, which may mean more available goods and services on darknet markets.
Is Bitcoin safe for transactions on darknet markets?
While Bitcoin is widely used, transactions are not completely anonymous. Users should still take precautions to protect their identity and personal data when engaging in these markets.
What does this mean for future darknet Market trends?
The shift back to Bitcoin could lead to increased activity on marketplaces that accept it. However, this change may also prompt discussions about privacy and security as users weigh the pros and cons of different cryptocurrencies.
