After being removed by Bittrex, Dash is fighting back against being classified as a privacy cryptocurrency.
A new tweet from blockchain company Dash has drawn criticism as the associated cryptocurrency, previously promoted for its focus on anonymity and privacy, now insists it is similarly transparent to Bitcoin.
This was initially preceded on 1 January by a tweet from the American crypto exchange Bittrex, which had announced the day before yesterday that it was delisting the privacy cryptocurrencies Monero, Zcash and Dash:
On 29 December, the crypto trading platform had previously delisted XRP after the US Securities and Exchange Commission (SEC) filed charges against issuer Ripple. Accordingly, speculation now arose that Bittrex was removing the privacy cryptocurrencies in order to prevent another round-robin by the authorities.
In turn, Dash responded in a tweet that the company had requested a meeting with Bittrex. Moreover, it would be substantively wrong to call DASH a „privacy cryptocurrency“:
However, the 2017 web archive shows that DASH was promoted by the Dash Foundation at the time as the „world’s first cryptocurrency focused on privacy“. The current version of the website, on the other hand, only talks about „the leading cryptocurrency for payments“.
In another response to Bittrex’s removal, Ryan Taylor, the CEO of Dash payment service Dash Pay, also downplays the cryptocurrency’s privacy feature:
Because Dash is merely „an offshoot of Bitcoin“, all transactions would be publicly viewable, just like with the crypto market leader. Even the built-in function called PrivateSend, which is supposed to anonymise payments, would not really guarantee complete anonymity.
This tweet drew further criticism from the crypto community, but some users backed Taylor up by pointing to a Dash blog post from last August that explicitly explained the cryptocurrency’s privacy feature. In it, Taylor had written at the time that „regulators are concerned that crypto exchanges cannot comply with information collection (KYC) and anti-money laundering (AML) requirements when conducting transactions with privacy cryptocurrencies“. To address the authorities‘ concerns, other crypto exchanges had delisted Dash in the past.
However, this has always been a misunderstanding, as Dash is often referred to as a privacy cryptocurrency, which it is not. Accordingly, the blockchain company is working to clear up this misunderstanding:
„Through our educational efforts, we have managed to explain the technology we use and convince authorities that Dash does not pose a greater risk than Bitcoin.“
The renewed clarification through the latest tweets comes just days after Dash announced it had moved its proprietary blockchain platform to the testnet. Meanwhile, the cryptocurrency’s share price has lost 3% today and now stands at US$87.71.