Monero Transactions Hit New All-Time High Thanks to ‘Social Gambling Game’

Francisco Memoria

Privacy-centric cryptocurrency Monero (XMR) has recently seen the number of transactions on its network reach a new all-time high after over 15,000 transactions were processed in a single day, partly thanks to a gambling game.

According to BitInfoCharts data, the Monero blockchain doesn’t cross the 10,000 transactions per day mark very often, and before this new all-time high the last time it did was in January of 2018, when it was trading close to its $400 all-time high.

Monero's transactions per day

The significant spike in daily XMR transactions appears to be related to the launch of a “social gambling platform” that allows users to gamble with their XMR while supporting the privacy-centric cryptocurrency’s development team.

The game, called Minko, was launched last month during XMR’s fifth anniversary, and the developers behind it have revealed the profits made during its first month are set to be donated to the Monero general donation fund. The game’s developers noted in its announcement:

We wish to keep financially contributing long term to Monero development and will define the best way forward after this first month (with more knowledge of what to expect in terms of traffic).

The cryptocurrency’s price doesn’t appear to be reacting to the increased amount of transactions. According to CryptoCompare data, XMR is currently trading at about $69.2 after rising 4.7% in the last 24-hour period.

The cryptocurrency’s positive performance so far today appears to be related to a wider market rally seemingly caused by institutional investors and Facebook showing interest in the crypto ecosystem, with the latter reportedly looking for partners to launch a cryptocurrency-based payments system.

Bitcoin, the flagship cryptocurrency, is currently trading over the $5,800 mark after seeing its price rise by 6.7% in the last 24-hour period. Most other altcoins have seen their prices rise after BTC jumped earlier today.

A game like Minko is currently able to thrive on the Monero blockchain thanks to an upgrade implement late last year, the slashed XMR transaction fees by more than 90%. The upgrade, implemented through a hard fork, included “bulletproofs” to do so, and was so successful various crypto exchanges lowered their withdrawal fees for Monero as a result.

It’s worth noting the privacy-centric cryptocurrency, which became increasingly popular after being accepted on some darknet markets, is thriving at a time in which these are struggling, as one of the most popular marketplaces, Dream Market, recently shut down and transferred services to new management.

Ampleforth Seeks to Become the Perfect Digital Asset for Portfolio Managers

A new token is seeking to change up the existing paradigm in the cryptoasset market.

Billing itself as “smart commodity money” - a token that has the benefits of commodity-monies like gold and silver, but can respond efficiently to changes in demand - Ampleforth is keen to emphasize that its token represents a new kind of asset in the space.

The Evolution of Money 

Money has been reinvented many times over: for many centuries mankind did without it, instead simply assigning value to particular goods in exchange for other goods. Then gold and silver formed the basis of money, whether coins were made directly out of these precious materials or "stamped" as a standard into baser metals.

Indeed, gold as a standard for global money transfer lasted for many centuries: the official gold standard was dropped by Britain and the US in the early 1930s and by 1971 the system was abandoned completely to be replaced fully by what we now call the fiat money system where global currencies (to a large degree) freely float against each other on foreign exchange markets.

The Crypto-Evangelists

Niall Ferguson is an expert in this field and, as an Oxford and Harvard lecturer, has written and spoken about money and capital many times. He may be a little late to the crypto party but is none-the-less evangelical about it: in a Bank of England seminar last year he called cryptocurrencies "the financial system of the future".

Ferguson has now thrown his weight behind the Ampleforth Project, which - on June 13 - raised $4.9 million in 11 seconds in its initial exchange offering (IEO) of its "Ample" (AMPL) tokens.

The digital asset explains in its white paper that it’s a "synthetic commodity" that aims to become truly uncorrelated from both traditional assets, stocks and currencies as well as from Bitcoin, other cryptoassets and other synthetic commodities. The problem with existing synthetic commodities, the paper explains, is that they have so far failed to do both. 

Ampleforth Explained

While Ampleforth seeks the price target of $1 for the Ample, instead of pegging directly to the dollar - like Tether - or to a basket of fiat currencies - as Facebook's Libra intends - the Ample will allow the quantity of assets a user holds to fluctuate, in addition to price, as it seeks a price supply equilibrium.

The system's protocol will actively seek this equilibrium by either proportionally increasing the quantity of tokens every user holds when prices climb, or proportionally decreasing the quantity of tokens every user holds when prices fall.

This is called money supply and has been one of the tools used by central banks to control inflation for many years. But Ferguson's criticism of this - in his book The Ascent of Money - is that it reflects human sentiment too much:

Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.

Ampleforth seeks to overcome these problems algorithmically by applying countercyclical pressures that dampen volatility, encouraging markets to self-correct. Supply updates will be freely visible in the market ahead of any changes, allowing the market to anticipate these changes and respond accordingly.

Ferguson explains his enthusiasm for the project:

The ingenious thing about Amples is that this they are not stablecoins, pegged in some way to existing fiat money. They are a special kind of digital asset, the quantity of which varies in response to the behavior of investors and traders.

Crypto Rivals

Ampleforth is unlikely to challenge Bitcoin any time soon as the number one crypto investment, but offers a compelling three-stage plan for the use of Amples. 

In the near-term, the token’s lack of correlation to both traditional assets and Bitcoin, will make it a useful portfolio diversifier. 

In the more medium-term, Amples may be used as reserve collateral in decentralized banks, such as Maker DAO.

Ultimately, the long-term goal however, is that Amples will serve as an independent alternative to central bank money. The team describes it as a “macroeconomically friendly” Bitcoin that averts the deflationary problems associated with fixed supply commodities when used as reserve collateral by banks.

Ampleforth Moves Forward

Such was the success of its first token sale on Bitfinex, that Ampleforth is conducting a second round of funding on the same exchange on Thursday.

The company aims to raise close to $7 million in this IEO, with a maximum contribution per investor of $7,060 and a minimum of $28, with each Ample token worth $0.98.