Privacy coins have been quite interesting lately. Dubai just issued a ban on privacy coin trading, yet DASH instead surged by 21%, and Monero XMR soared to a historical high of $679. At first glance, it seems surreal, but upon closer reflection, the logic is actually quite clear.

Bans are bans, but market demand never truly disappears. Liquidity simply flows from restricted exchanges to other venues, with trading activity shifting to overseas exchanges to stay active. The futures market had long set up a collapse gamble with short positions, only to be squeezed out, with open contracts reaching new highs. The more intense the opposition, the more the scarcity attribute of privacy coins is reinforced—gradually evolving into a narrative of "dark digital gold."

Ultimately, stricter regulation cannot change the fundamental demand at the grassroots level; it only makes the asset's properties more pure. When one door closes, another window opens. High-volatility assets indeed require caution, but this trend already indicates the core issue— the greater the pressure, the stronger the rebound.