‘Secret’ Altcoin Goes Parabolic After Rumors of European Ban on Privacy Coins Swirl

An anonymity-focused altcoin is outperforming all other crypto markets as rumors of a European ban on privacy coins circulate.

Secret (SCRT) is a privacy-focused chain built on the Cosmos (ATOM) network with end-to-end encryption and smart contracts called “Secret Contracts”.

Their network aims to allow users to make any coin or blockchain private by encrypting details like token balance and sending/receiving wallet addresses once exchanged for secret tokens.

The project also uses “Secret Bridges” to convert currencies from other blockchains into secret tokens by “parking” them in a smart contract on the source chain and then minting the equivalent amount on the secret Network.

While the rest of the digital asset markets consolidated near local lows, the SCRT suddenly turned parabolic on Wednesday, from $0.64 to $1.29 in less than a day, representing 101% gains. .

At the time of writing, SCRT is trading at $0.91, still up 42% in the last 48 hours, but 91% below its all-time high of $10.38.

Privacy coins have been facing increasing pressure from regulators in Europe, as well as the US, including the Financial Action Task Force (FATF).

The FATF seeks enforce the “travel rule,” which recommends that governments compel cryptocurrency exchanges, banks, over-the-counter (OTC) counters, and hosted wallets to share identifying information about people involved in crypto transactions worth more than of $10,000.

Earlier this year, the US Treasury sanctioned the Ethereum-based cryptocurrency mixing service Tornado.cash, weeks before the developer behind the open source protocol was arrested in the Netherlands, sparking criticism from cryptocurrency privacy advocates.

The group of crypto experts Coin Center has since then defendant the Office of Foreign Assets Control (OFAC) for the sanctions.

Says Coin Center CEO Jerry Brito,

“Not only are we fighting for privacy rights, but if this precedent is allowed to hold, OFAC could add entire protocols like Bitcoin or Ethereum to the sanctions list in the future, immediately banning them without any public process. This cannot go unnoticed.”

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Featured image: Shutterstock/klyaksun/Natalia Siiatovskaia