Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Monero (XMR) Rating= 24/1000
Technology (0 to 300) = 47
- Speed (0 to 50) = 1
It takes 2 minutes to process a transaction in the next Monero block. On average, it takes approximately 20 minutes for a Monero transaction to be fully verified and funds available to be spent in a subsequent transaction. This is quite fast for a private coin but not fast enough. If we look at transactions per second Monero claim they can do between 4 and 1700 tps depending on hardware, bandwidth, etc. Currently the estimate is 4 tps with some reports showing as little as 0.5 tps at times. Kraken lists deposit times at an average of 30 minutes.
- Cost (0 to 50) = 25
The highest cost of transacting Monero is $ 0.0564. However, transaction fees increase with an increase in “priority” of the transaction. If the transaction is set for a higher priority, its fee will increase so that it can successfully compete with other transactions to become part of the next block on the blockchain. This transaction cost is still low compared to other coins like Bitcoin but much higher than the top end cryptos..
- Scalability (0 to 50) = 5
Monero has a bulletproof technology which significantly enhances the network. Unlike Bitcoin, Monero has an adaptive block size with fixed block size, and the number of transactions regularly exceeds the room available in the blocks that are mined. Monero’s adaptive blockchain beefs up its scalability as it allows it to accommodate additional transactions on the network. As we have said previously they claim to have potential for scaling to 1700 tps but claims and reality are two entirely different things, especially in crypto.
- Reliability (0 to 50) = 1
Monero project is still at the commencement stages. Although it exhibits moderate indications of progress, the network still faces above-average level risk. Token price is highly volatile, prospects for adoption are uncertain due to factors such as poor marketing, lack of developers projects, the irrelevance of tech, or critical governance issues. It does not seem reliable in any shape or form.
- Environmental Impact (0 to 50) = 5
Mining of Monero is based on the principle of POW (Proof-of-work) consensus. Miners receive a reward for solving cryptographic problems, which results in a new block being added to the blockchain after every two minutes. The fact that Monero can be mined makes non-environmental friendly. Nonetheless, unlike Bitcoin, which requires complex GPUs and hardware for mining, XMR can be mined from a simple personal computer that doesn’t consume much electricity. This would likely get more difficult should the price rise.
- Decentralization (0 to 50) = 10
Decentralization, privacy, and security are considered Monero key features. Transactions in the network are confirmed by distributed consensus and then immutably recorded on the blockchain. Third-parties do not need to be trusted for the safety of the coins. Like all POW coins though, centralization is just a Bitmain away!
Security (-250 to 0) = -240
- Reorg, 51% & Brute Force Attack (-100 to 0) = -100
Critical Bugs: In 2018, Monero suffered from a bug, allowing hackers to drain funds from XMR wallets on the Monero’s blockchain. The security bag allowed miners to bypass securities and make transactions blocks in various XMR accounts. Monero’s privacy efforts lead to lessened security which put owners at risk of losing their coins. This is on top of the usual mining coin threats like 51% attacks which Monero has been threatened with numerous times in the past.
- Potential for Being Banned (-100 to 0) = -90
Being a private coin, Monero has a huge potential for being banned. Already, several countries, including Japan, South Korea, and France, have banned Monero. Monero is banned in these countries because it has been linked to several illegal activities, including mining malware, money laundering, and dark web purchases. The ban resulted in the delisting of Monero from several exchanges. The increased attention from different authorities towards privacy coins could prove to be serious obstacles in the future.
Throw in the browser hacking scandals used to mine Monero and this has to be one of the most threatened coins there is.
- Network vulnerabilities (-50 to 0) = -50
Monero disclosed nine network vulnerabilities, including one that could have allowed hackers to steal to XMR from cryptocurrency exchanges. Among the network vulnerabilities listed include Excessive Resource Usage, Locked-Transfer functional burning, leaking of unutilized memory, and Remote P2P DoS.
Use Case (0 to 500) = 215
- Initial Main Use Case (0 to 100) = 10
Monero’s main intent was to provide a secure, private, and untraceable crypto transactions giving its users complete control over their funds away from prying public eyes. So far, the network has been able to achieve privacy and maintained the anonymity in its transactions. However, the long chain of security cases is a huge set back for its use case.
- Mainnet Live (0 to 200) = 200
Since its launch in 2014, Monero has been live and has grown to be a preferred open-source cryptocurrency. It is highly acclaimed for its focus on privacy and fungibility. If you can ignore all the scandals we mentioned earlier of course.
- Additional Use Cases (0 to 100) = 0
Apart from the main use case, which is to provide private cryptocurrency transaction. Monero lacks additional use cases.
- Additional Working Products (0 to 100) = 5
There are a few products that are developing on top of Monero. One of the most recent examples is Tari Labs-decentralized protocol. Tari is a second layer solution for Monero: its developers want to change the experience of owning, managing and transferring digital assets.
Core Team, Partnerships & Developers (0 to 200) = 2
- Core Team & Developers (0 to 100) = 1
Monero lacks a clear development team or foundation. Monero was originally created by user «thankful_for_today». However, right from the beginning, the community did not agree where the project was headed. Soon after, the team of developers forked it away. The current team was formed in a decentralized way and partially is anonymous.
- Partnerships (0 to 100) = 1
Monero has partnered with several organizations to spur cryptocurrency growth. It partnered with Arweave to implement a proof-of-work algorithm. The project also claimed it had partnered with Fortnite making it the exclusive crypto payment option for Forntnite’s merchandise store. Epic Games made a statememt that there was a mistake with their payment processor which accidentally led to Monero being mentioned as a payment method. This mistake was cleared up quickly and Epic Games made it very clear it was an error.
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