D I G I T A L - A S S E T R E S E A R C H & R I S K M A N A G E M E N T

www.paribusgroup.io

TRON: R E L E A S E D A T E : M A Y 2 0 1 9 version: 1.0 DECENTRALIZE THE WEB

A Paribus Group Report :

SECURE-PRIVATE- UNTRACEABLE DISCLAIMER

Trading on any market carries a high level of risk, and may not be suitable for everyone. Past performance is not indicative of future results. Before getting involved in investing or trading, you should carefully consider your personal venture objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial deposit and therefore you should not risk funds that you cannot afford to lose. You should be aware of all the risks associated with trading any market, and seek advice from an independent financial advisor if you have any doubts. THE MEMBERS OF PARIBUS GROUP ARE NOT REGISTERED FINANCIAL ADVISORS OR LEGAL COUNCILORS. The information contained in this publication does not constitute legal or financial advice or a solicitation to buy or sell any asset contract or securities of any type and is to be regarded for educational or entertainment purposes only. Paribus Group will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Our analysis is based on publicly available information. We do our best to keep our analysis in line with recommendations in view of the legal context of each country’s regulatory system at the time of writing. Any statements made in our analyses is strictly our own opinion and readers of this publication should exercise their own judgment when electing to purchase or use any Digital Asset.

CONTENTS

Section I: Team

Section II: Technology

Section III: Application

Section IV: Adoption & Alliance

Section V: Legal

Section VI: Economic

Section VII: Marketing

Section VIII: Sentiment

Section IX: TTAALEMS Risk Assessment

Section X: Tips

SECTION I: TEAM

Section Overview

Monero’s approach to their project is unique in comparison to other projects in the space. Their vision of creating a monetary system that upholds the privacy and anonymity of the users is reflected by their modus operandi. Even their main team has largely opted to maintain anonymity.

Highlighted Team Members:

The Monero Team page on their website looks like this:

(Source: https://web.getmonero.org/community/team/)

Section Analysis

Finding substantial information on the Monero team is tricky business. The core team is sticking to their guns when it comes to maintaining their personal privacy and anonymity. This makes it difficult to verify the legitimacy of individual members. The philosophy behind their team structure is to keep it decentralized. Even the over 500 strong volunteer developers and the Monero Research Lab are completely independent entities who develop, research and find applications for the underlying technology of Monero.

Stoplight Matrix

Positives Needs Improvement Red Flags -The team has done a great -The fact that there job overseeing the entire is very little to no project, regardless of the concrete decentralized nature of the information on the project. individual members of the core team somewhat undermines the assurance factor for investors.

SECTION II: TECHNOLOGY

Section Overview

The Monero project is one of the first privacy coins to become well accepted by advocates of the Cryptospace. It is an open-source project which means that while development tends to take a bit longer, the code is completely auditable and the product is often contributed to by multiple parties all around the world. Monero’s technology is based upon The protocol, a protocol published anonymously on the TOR network in 2012. It implements the CryptoNight Protocol and additional upgrades through Ring Confidential Transactions (RingCT) and stealth addresses. The main way in which Monero protects privacy is through obfuscation rather than encryption, which can potentially be problematic.

Facts and Figures

● Monero relies on multiple layers of obfuscation to achieve privacy. Ring Signatures, Ring Confidential Transactions, and Stealth Addresses. Ring Signatures use multiple addresses to sign the Public so that a user cannot determine which address actually sent the transaction. In this sense, the user’s address is not encrypted but rather hidden amongst decoy addresses. Ring CT protocol applies a similar approach to masking transaction amounts in multiple rings. However, the confirmation of the transaction is done with mathematical proofs based on the input of the transaction. On the Monero network, the input of transaction MUST match the output. Therefore if an individual holds 250 Monero, whenever they transact they are technically using all 250 Monero. For example, someone paying for online services that cost 15 Monero would place a transaction with two outputs, one for 15 Monero and one for 235 Monero. The 235 is returned to the user's address (Or another address they own), and the 15 is sent to the payment address. This way, all 250 Monero is accounted for, giving the network enough information to confirm the transaction while simultaneously preventing fraudulent transactions. A user’s public key (or address) is modified using an algorithm to create a one-time address for the transaction, which is known as a stealth address. The (Simplified) process of a Monero Transaction is as follows.

1 . User begins a transaction by creating transaction outputs, (Who the transaction is to and what the amount to be transacted is.) and using their private spend key to confirm they want to send the transaction amount. Along with the genuine transactions, decoy transaction outputs are created to help the protocol obfuscate the transaction.

2. The protocol then takes the transaction outputs, both real and decoy, to create a Ring Signature which contains genuine transaction output, the key image, and the decoy transaction outputs within it. (This is called a Borromean Ring Signature)

3. Something called a Commitment Scheme is used to create a value of all the transaction hashes, which is used to prove that the transaction is not fraudulent via homeomorphic addition. (Transaction Input/Output values must balance each other out after transaction fees are taken into account).

4. A Stealth Address is generated from the Receiver's public address.

5. Transaction is sent to the Monero Blockchain.

6. The Receiver's address looks for transaction’s across the network that it can view using it’s Private View Key. Once the correct transaction is spotted through identifying the transaction output with the proper Key Image, the Monero Blockchain will confirm the transaction using the CryptoNight Proof of Work Algorithm.

(https://ww.getmonero.org/library/Zero-to-Monero-1-0-0.pdf)

● Researchers from several Ivy League Schools explored the possibility of tracking Monero transactions through several differing methods. These methods rely on timing attacks, deduction, and previous versions of Monero that allow attackers to identify previous legitimate addresses and coin payments when privacy settings were optional when transacting across the chain. (https://arxiv.org/pdf/1704.04299/) ● Lack of Geolocation and IP masking makes fingerprinting attacks, an attack in which the user’s seemingly non-sensitive data is used to create a unique profile which can then be tracked across the web, a viable option for hackers or law enforcement. This issue is proposed to be solved by implementing a version of the I2P Network within the Monero Blockchain. However, this has yet to be implemented. ● The Monero blockchain uses ASIC resistant mining algorithms which prevent ASIC miners such as the Antminer 3X from being effective. However, this has served to increase the prevalence of malware which creates botnets to mine Monero. A botnet is a network of computers linked together to accomplish a singular task or series of tasks. The privacy of Monero and its design for individual machines has also increased its use across the dark web and is the currency of choice for cyber-criminals.

Section Analysis

Monero is one of the best privacy tools out there when it comes to protecting transactions for everyday people. However, it’s reliance on obfuscation rather than encryption is a weakness that could potentially be utilized to fingerprint specific transactions. Likewise, geo-locations and IP address tracking, two common tactics of both law enforcement and the hacking community could be a potential privacy issue which could unmask certain users. Until Monero fully implements Kovri or another similar masking system for user’s geo-location data and IP addresses, additional privacy systems will need to be used in conjunction with Monero to remain completely anonymous. That said, Monero is still one of the best privacy with some of the most robust development communities.

Stoplight Matrix

Positives Needs Improvement Red Flags - Previous - Good blend of privacy tools - Device geo-location and version’s integrated. IP addresses can transactions potentially be used to prior to - Future upgrade plans to currently identify users. make privacy even better. enforced - Monero’s PoW privacy - Most robust obfuscation- measures are algorithm combined with based privacy solutions in viewable on the it’s privacy features Gen 2 . Monero make it the prime Blockchain, - Chronic code audits currency of crypto- weakening mining malware and current other cyber criminals. obfuscation.

SECTION III: APPLICATION

Section Overview

The application of privacy needs very little introduction for most people. However, privacy is under attack more than ever before; it is no wonder there are so many privacy coins and platforms being developed. The use-case for private finance is remarkably under-developed in general society, given how critical finance is to every other area of privacy and free- speech. Projects like Monero not only provide people a good layer of protection when it comes to financial privacy but also allows for creative monetary solutions.

Facts and Figures

● The U.S. Government controls all U.S. currency worldwide, which means that regardless of citizenship or country of origin assets stored in U.S. Dollars can be frozen and seized at any point in time.

● Transaction information is often sold to third parties by big data corporations or oven your financial institutions. While the 1978 Financial Privacy Act does prevent some of this, there are other ways that the act is circumvented.

● Private cryptographic currencies like Monero make financial anonymity feasible and prevents social or governmental blacklisting of a person's finances. Which, of course, has positives and negatives.

● The Dodd-Frank Act of 2010 actively prevents U.S. citizens from participating in many financial opportunities unless they are an accredited investor (Net worth over 1M USD excluding primary residence, or a combined net annual income of 200,000 USD). Current financial privacy tools and ecosystems are being developed to prevent such exclusionary policies being enforceable. (Note that this is NOT legal but is a predictable response of the market)

● Private ecosystems give people under restrictive, authoritarian governments financial alternatives.

Section Analysis

The application of projects like Monero, which provide a strong layer of privacy and security are many and varied. However, most of them, when boiled down to their base elements, are variations on privacy as a human right. Privacy in finance keeps people safe from being targets of opportunity, prevents predatory advertising by finance companies, and allows people to conceal their net-worth and transaction history safely. This is applicable in a wide variety of situations which are both legitimate and productive. However, the use-case for money laundering and criminal activity tremendously overshadows the legitimate use-cases. This being said, we foresee concurrent ecosystems evolving, a regulated and endorsed one which most people will take part in, and a privacy/anonymity based unregulated one. Rest assured that privacy tools won’t go away, but neither will they be convenient or safe places to park capital.

Stoplight Matrix

Positives Needs Improvement Red Flags - Privacy ecosystems are - From an investment fantastic for circumventing standpoint, privacy oppressive governance ecosystems are a huge structures. risk to private capital.

- Obfuscation allows the - The main application general population plausible of Privacy Platforms deniability and a greater level necessarily put them of privacy as a whole. at odds with law enforcement and - The UN has declared the regulators. right to privacy a universal human right. (Though the fight for the right to privacy is still very much ongoing)

SECTION IV: ADOPTION & ALLIANCE

Section Overview

Monero’s adoption curve is impressive, as a decentralized project, the fact that it has become so widely accepted within certain industries is a testament to its efficacy. A wide variety of online or even brick and mortar retailers accept Monero payments, to include the adult entertainment website PornHub. There was at one point some miscommunication about Monero being accepted for in-game purchases on Fortnite, a popular online game. The in-game store turned out to not be accepting Monero, which was a small blow to the project but not one that was unexpected. Given that Monero is such a decentralized project, it doesn’t truly have legal partnerships like assets issued by a controlling company.

Facts and Figures

● Monero is accepted and/or can be integrated into these 7 payment gateways. Offering increased accessibility for online retailers wanting to take transactions with Monero. ➢ CDPay ➢ CoinPayments ➢ GloBee ➢ Living Room of Satoshi ➢ Monero WooCommerce Extension (PHP) ➢ MyCryptoCheckout ➢ SwirlPay

● Monero is also accepted by over 64 Online Retailers for goods and over 68 physical and digital service providers. However, the breakdown of these services as seen on their website does not include individual user’s sites which accept Monero through manual means, or through WooCommerce plugins.

● The Monero Blockchain saw well over 1.6 Million transactions last year, making it one of the most used Privacy Coins in existence.

● In late December of 2018, there seemed to be huge news for Monero when Epic Games, the creators of Fortnite opened an in-game store which appeared to accept Monero. Unfortunately, this turned out to be a mistake and Epic Games released a statement saying that there were no cryptocurrency partners, nor were there any talks to add them.

● As previously mentioned in another section, Monero is also the currency of choice for many retailers running hidden services on the TOR network, often mistakenly referred to as the Dark Web. While not a hard and fast rule that these services are illegal, many are. Services that can be paid for with Monero include, narcotics, assassinations, fake passports and IDs’s, as well as weapons and child pornography.

● Monero has also found itself the currency of choice for exploitative software and malware, due to the enforced privacy layer within the currency.

Section Analysis

Being so decentralized has massive advantages and disadvantages when it comes to adoption. Firstly, anyone can easily integrate Monero payments or accept them since it is not restricted by the developers and requires no application or approval process. Monero is one of the most widely accepted and used cryptocurrencies in the world. That stated, the trend of illicit uses for Monero and the darker side of privacy coins have made larger, legitimate businesses less likely to accept Monero payments due to the potential legal risk from regulators and governments.

Stoplight Matrix

Positives Needs Improvement Red Flags - Monero is easy to integrate - The fact that Monero and accept payments with. is used so heavily for illicit purposes makes - Monero is well known and it unpalatable for accepted by many legitimate regulators; leaving retailers. holding Monero a risk when conducting legitimate business in developed countries such as the U.S., Japan, France, the UK, and South Korea.

SECTION V: LEGAL

Section Overview

Currently, the legal status of many cryptocurrency projects are hovering in a quasi-ambiguous state and Monero is no exception. In fact, Monero is in an even more precarious position because of its use-case and decentralized nature. Privacy and Anonymity Coins are targeted specifically by regulators because of their purported use in criminal or terrorist activities. It is unclear how international regulatory environments will respond to projects like Monero in the near future.

Facts and Figures

● Spring of 2018 Japan’s FSA issued a ban on cryptocurrencies that have a sufficient level of privacy built into it, to include Monero. Other countries have been considering similar actions.

● Regulators have expressed concern specifically with Monero as it has become the currency of choice in Dark Web (TOR, I2P, FreeNet) marketplaces as well as use in ransomware or cryptojacking malware.

● There is currently an international push for the right to privacy as a universal human right. How this narrative will impact currencies like Monero will remain to be seen.

● Companies offering ICOs in the U.S. or to U.S. investors must register with the SEC as either a securities offering or as a securities-exempt offering. Either way, companies offering ICOs to U.S. citizens, OR companies based in the U.S. MUST be involved at some level with the SEC to avoid potential legal repercussions. Since Monero is a decentralized project, it is not registered with any regulator and should be treated with caution.

● Because the Digital-Asset marketplace is so immature and there has not been a distinct legal status granted to Digital-Assets, there are not many consumer protections being applied to the market. Things like insider trading, price manipulation, and other such events are still commonplace. Currently, these events are not prosecuted because it is still a poorly regulated market. However, it is possible that once regulation is solidified over the next few years, such things will be prosecutable.

● The existence of a separate view-key associated with Monero addresses and transactions theoretically allows for regulatory compliance or organizational auditing.

Section Analysis

The legal aspect of this project is by far the most complex. Global regulation has not yet caught up with emerging technologies and tools, including Monero. The ability to transact anonymously, in a semi-trustless system, apart from any guaranteeing organization (read government) makes regulators very uncomfortable. Current Anti-Money Laundering laws prevent tools like this from being officially sanctioned and accepted for wide spread public use. Having decentralized, trustless system are a huge benefit in the long run but in the current regulatory environment it creates an unsure footing for legitimate businesses transacting in Monero. Japan, South Korea, and France have already spearheaded initiatives to ban privacy assets in support of anti-money laundering policy. Monero’s solution was to use separate view keys, similar to a private key, to allow for auditing of certain addresses or transactions. However, for it to be sufficient for regulators it would have to unmask every account that the wallet transacted with, which it does not. Therefore it is unlikely to make a big different when it comes to regulatory blessing.

Stoplight Matrix

Positives Needs Improvement Red Flags - The Public wants privacy - Regulators are and security. International very uncomfortable Right to Privacy Movements with anonymous may help Monero navigate transactions. the regulatory environment. - Japan has already - Existence of View-Keys banned digital which can be shared to view privacy assets. contents and transactions of wallets could circumvent regulatory issues, though there are easy workarounds due to the enforced privacy nature of Monero.

SECTION VI: ECONOMICS

BASIC TOKENOMIC DATA:

Name: Monero Symbol: XMR Launch Date: April 18, 2014 ICO Price: [Approx. $2.50] [ Ƀ0.0050212] [Ξ N/A] Current Price (June 1, 2019): [$ 95.19] [Ƀ 0.0111] [Ξ 0.357] Circulation Supply: (May 13, 2019) XMR 16,976,901 Total Supply: (May 13, 2019) XMR 16,976,901 Current Market Capitalization (June 1, 2019): [1,619,775,105] [ Ƀ 189,021] (sources: cryptorank.io, coinmarketcap.com)

EXCHANGES LISTED:

Altcoin Trader: ZAR B2BX: USDT USDC Binance: BTC USDT EUR B2BX BTC ETH BNB

Bisq: BTC BitBay: PLN BTC USD Bitbns: INR

Bitebtc: CNY ETH Bitfinex: USD BTC Bithumb: KRW BTC USD

Bitlish: BTC EUR BitTrex: BTC USDT Braziliex: BRL BTC ETH

BTC Trade UA: UAH BTC-Alpha: BTC CHAOEX: USDT BTC

Cobinhood: BTC Coinall: BTC Coinbe: BTC

CoinBene: BTC Coindeal: BTC CoinEx: BTC USDT BCH

Coinut: USDT BTC CREX24: BTC ETH Cryptobridge: BTC LTC Cryptomate: GBP Cryptopia: BTC LTC DigiFinex: USDT BTC DOGE NZDT USDT ETH

DragonEx: USDT EXMO: BTC USD ETH Exrates: BTC USD EUR USDT

Gate.io: USDT BTC Graviex: BTC HitBTC: BTC USD ETH EOS EURS TUSD

Huobi Global: USDT IDCM: USDT BTC Instant Bitex: BTC BTC ETH

Kraken: EUR USD Kucoin: ETH BTC Liquid: BTC BTC

LiteBit.eu: EUR LiveCoin: BTC USD Mercatox: BTC

OKEx: USDT BTC ETH OpenLedger DEX: Poloniex: BTC USDT BTS BTC DASH USDC LTC ZEC BITCNY BCN MAID

SouthXchange: BCH Stex: BTC USDT Tokenomy: BTC BTC USD

Trade By Trade: BTC Trade Satoshi: USDT TradeOgre: BTC USDT BTC ETH LTC DOGE

Tux Exchange: BTC Upbit: BTC KRW Waves Decentralized USDT ETH Exchange: BTC WAVES ETH

TOTAL: 54 Exchanges

(source: aggregated from coinmarketcap.com, cryptorank.io)

So far, Monero is being traded on 54 exchanges. This gives them plenty of exposure to traders and investors. Considering how long Monero has been around, this comes as no surprise. They are listed on some of the biggest exchanges in the crypto space as well, which gives them both credibility and legitimacy despite the highly decentralized and private nature of the project. Despite the fact that they have their own protocol, their trading pairs give a robust number of options for traders.

TECHNICAL ANALYSIS:

(source: tradingview.com, accessed 31MAY19)

Monero has shown progressive bullish movement since the clear cloud crossover on March 2019. The end of April and early May saw some bearish testing on the cloud but resulted in a cloud bounce confirming the strength of the bullish trend. Halfway through May, the bullish sentiment started losing steam, and it appears that the 5th wave of the Elliot Wave pattern has been completed. A current consolidation is occurring, as with a potential formation of a head and shoulders pattern eventually favoring the bearish direction. If the current day to day bearish trend continues, it can be expected to touch the 38.2% Fibonacci retracement line at $79.12. Should it bounce of the 38.2% Fib. retracement, then it will possibly surge up to form the right shoulder of the head and shoulder formation. Unless bullish market sentiment surges it past that point, then the price can be expected to drop downwards to $71.94 or even down to $64.76.

Ranging Trade Opportunities:

As the current trend seems to be consolidating, there is a ranging window between $79-$95 that can potentially be scalped or grid-traded.

Bullish Trade Opportunities:

Entry opportunities exist at the $79 area if the expectation is that the %38.2 Fib. line will hold as a support. Profit can be taken within the $88-$95 window.

Bearish Trade Opportunities:

An easy possibly for a shorting opportunity exists at the $88 window, with profit taken a little above the $80 mark for reduced risk exposure. Additionally, one can wait until the head and shoulders formation is completed to enter a short at the $79 mark, with take profit marks reaching the $64 area.

MAKING MONEY ON MONERO:

1) Buy and Hold- There aren’t too many options for making money with Monero, so the tried and true method of buying and holding is still the best option. Monero brings with it a technological capability that gives it inherent value. Being possibly the best privacy coin system in the crypto world makes it stand out more for its utility in maintaining privacy and anonymity than for any innovative contribution as a financial transaction system. However, the capability of being a transaction system that maintains complete anonymity cannot be underestimated, as there is a large list of demographics that find value in this.

2) Day Trading- Being on 54 exchanges makes Monero a surprisingly progressive and accessible asset for the investor, considering that the nature of their protocol makes it hard to integrate with other mainstream protocols. Even their wallet is different from any other wallet system. However, they have good enough exposure that it’s fairly easy to day trade Monero pairs. Their listing on several major exchanges, including Binance and Bithumb, makes this easier for the trader.

3) Become a Miner- Mining for proof of work protocols has become very profitable for those with the hardware to support the operation. Monero also offers mining as a method for increasing an individual’s holdings. However, having to buy enough hardware to conduct a feasible mining operation can be a daunting barrier to entry for the less experienced. However, for those who wish to explore this option, this would be the place to start: https://web.getmonero.org/get-started/mining/

Section Analysis

The core value factor for Monero is the technology underlying their protocol. Being able to offer fully anonymous and untraceable transactions is a huge added capability for certain groups. However, in doing so, Monero sacrificed the ability to offer other options for profitability for the average investor. Unless an individual already has the appropriate hardware to conduct mining operations, then the only options left are day trading and buying and holding. Although these two options can be profitable, only experienced traders will be able to properly profit from day trading, leaving the buy and hold strategy as the only viable option for everyone else. Additionally, the privacy and anonymity capabilities of Monero has attracted the attention of government agencies who are heavily suspicious of transaction systems that can be used for money laundering or other illicit activities. This kind of negative attention can be detrimental to the perceived value of Monero from a risk management perspective.

Stoplight Matrix

Positives Needs Improvement Red Flags -54 exchanges listed, - Few options for - Government including major profitability for the agencies see exchanges. average investor. Monero as a method of conducting illicit activities.

SECTION VII: MARKETING

Section Overview

Monero’s long term existence in the crypto space has given their marketing apparatus some time to mature. They have pretty broad reach within the community, and there are very few who participate in the crypto markets that haven’t heard of Monero. The following are the general numbers behind their presence in the crypto community:

SOCIAL MEDIA PRESENCE: By the numbers

TWITTER FACEBOOK

English Channel: English Channel: https://twitter.com/monero https://www.facebook.com/moner (Followers: 318,000+) ocurrency/ (Followers: 29,395+)

REDDIT TELEGRAM https://www.reddit.com/r/Mo English Channel: nero/ https://telegram.me/bitmonero (Readers: 158,000+) (Members: 6,184)

OTHER COMMUNITY OUTLETS AND CHANNELS

SLACK MATTERMOST https://monero.slack.com/ https://mattermost.getmonero.org /

TAIGA STACK EXCHANGE https://taiga.getmonero.org/ https://monero.stackexchange.co m/

Section Analysis

Monero has a fairly robust presence in the crypto space. Aside from the (ironically) open transparency that they foster within their community and development channels, their CEO Ricardo Spaggni is a very high-profile personality within the crypto community. He has been known to travel to events to highlight Monero’s unique use case. However, one of the more surprising aspects of the project is the Monero Research Labs initiative. This is an independently run initiative started by groups of developers who are curious to explore the possibilities in the realm of financial privacy. It is completely autonomous from the core team, except for the occasional dialogue and possible collaboration.

Stoplight Matrix

Positives Needs Improvement Red Flags

-Active presence on all major -Minimal attempt at engaging social media platforms. foreign languages. -Active involvement and promotion by core team members. -Active appearances on crypto conferences. -Very proactive and positive development community.

SECTION VIII: SENTIMENTAL ANALYSIS

The sentiment for Monero is markedly mixed, depending on the demographic. On the one side, the more libertarian and economically liberal inclined crowd celebrates the financial privacy vision that Monero espouses. The other side of that are government agencies and policymakers who are more than a little nervous about the possibility of actors being able to transact with impunity. The dark side to privacy coins like Monero is that it has gained positive traction among criminal and extremist organizations. Due to the full un-traceability of Monero transactions, there is no way to really ascertain whether bad actors have been using Monero as a transaction system. However, the fact that this possibility exists has put Monero and other privacy coins under the spotlight of investigative agencies like the FBI. For the project, this could be considered negative sentiment, but for those with a more anarcho-capitalist bend, projects like Monero are a definite win. Historically speaking, Monero has held quite firmly in value, even during the 2018 bear market year. The future friction between the demand for private financing and government oversight will ultimately determine the value of privacy coins like Monero.

Stoplight Matrix

Positives Needs Improvement Red Flags -Audits have found source -Highly code to deliver as promised. controversial as transaction system for bad actors and criminal organizations.

-Under scrutiny by several government agencies.

SECTION IX: TTAALEMS RISK ASSESMENT

Needs Improvement/Red- Assessment Deduction Flag

- The fact that there is - The fact that there is little to -2 very little to no no evidence of who works on concrete information Monero except for two of more on the individual overt members of the members of the core development team can be seen team somewhat in two different lights. One undermines the that is seen as higher risk assurance factor for because of an assumed lack of investors. accountability and one that is risk neutral as it is a decentralized and distributed project.

In the long run, the only way that this could be a higher risk factor is if the team decides to stop developing Monero and it falls behind the advancement curve.

- Highly controversial - This is honestly the biggest -20 as transaction system detraction that Monero and all for bad actors and other Privacy and Anonymity criminal Platforms have is the organizations. propensity for the platforms to be used for illicit activity. This - Government agencies has led to a near universal, see Monero as a international scrutiny of the method of conducting more popular ones such as illicit activities. Monero and . This issue is not helped by the fact that - Regulators are very Monero specifically has been uncomfortable with commonly used in black market anonymous trading and for cybercrimes. transactions. This puts Monero in a precarious position in which it - Japan has already could be banned or discouraged banned digital from use in many developed privacy assets. nations in the next few years. This will drastically decrease - The fact that Monero liquidity from legal brokers and is used so heavily for exchanges. Making it a higher illicit purposes makes risk factor for people seeking to it unpalatable for remain completely legally regulators; leaving compliant. holding Monero a risk when conducting legitimate business in developed countries such as the U.S., Japan, France, the UK, and South Korea.

- Previous version’s - Geo-locating users and -2.5 transactions prior to fingerprinting is a common currently enforced tactic used by high-level or privacy measures are state level actors to identify viewable on the users who are using masking Monero Blockchain, software such as Monero. That weakening current being said, the likelihood of it obfuscation. being used, or actors being able to successfully build out a - Device geo-location workable vulnerability because and IP addresses can of it is low to none. The potentially be used to previous data that was not identify users. privacy enforced does theoretically weaken the obfuscation of certain transactions, but that is only one layer of security in the whole network and as more Monero is minted it will make the impact of those previous transactions negligible.

- Few options for - Monero is not designed to be -5 profitability for the an investment vehicle, it is average investor. designed as a financial privacy tool. Treating it as such may or may not yield results, but it’s not meant to treated as such.

TTAALEMS RISK 70.5/100 ASSESSMENT SCORE

TIPS

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