After being removed by Bittrex, Dash is resisting its classification as a data protection cryptocurrency.
A new tweet by the blockchain company Dash has sparked criticism, because the associated cryptocurrency, which was previously advertised with its focus on anonymity and data protection, now emphasizes that it is as transparent as Bitcoin.
On January 1st, this was preceded by a tweet from the American crypto exchange Bittrex, which announced the day before yesterday that it would remove the data protection cryptocurrencies Monero, Zcash and Dash from its listing:
On December 29, the crypto trading platform had previously taken XRP out of trading after the US Securities and Exchange Commission filed an indictment against publisher Ripple. Accordingly, speculation arose that Bittrex would remove the data protection cryptocurrencies in order to prevent another sweeping blow by the authorities.
Dash then replied in a tweet that the company had requested a meeting with Bittrex. In addition, it would be wrong in terms of content to call DASH a „data protection cryptocurrency“:
However, the web archive for 2017 shows that DASH was advertised by the Dash Foundation as the “world’s first cryptocurrency with a focus on data protection”. On the current version of the website, however, there is only talk of „the leading crypto currency for payments“.
In yet another response to Bittrex’s removal, Ryan Taylor, CEO of Dash Pay, also downplays the cryptocurrency’s privacy feature:
Because Dash is only „an offshoot of Bitcoin“, all transactions would be publicly available, just like with the crypto market leader. Even the built-in feature called PrivateSend, which is supposed to anonymize payments, wouldn’t really guarantee complete anonymity.
This tweet caused further criticism from the crypto community, but some users backed Taylor by referring to a Dash blog entry from last August that explicitly explains the data protection function of the crypto currency. In it Taylor wrote at the time that “the supervisory authorities fear that crypto exchanges cannot comply with the requirements for information collection (KYC) and anti-money laundering (AML) when they carry out transactions with data protection cryptocurrencies”. In order to counter the concerns of the authorities, other crypto exchanges had already removed Dash from the listing in the past.
However, this has always been a misunderstanding as Dash is often referred to as a data protection cryptocurrency, which it is not. Accordingly, the blockchain company is trying to clear up this misunderstanding:
„Through our educational work, we managed to explain the technology we were using and to convince the authorities that Dash is no greater risk than Bitcoin.“