Signal faces criticism after cryptocurrency Mobilecoin integration

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Signal, the cross-platform encrypted messaging service is facing criticism this week, after announced integrating the cryptocurrency Mobilecoin. Additionally, controversy surrounds the company’s founder and CEO Matthew Rosenfeld, known as ‘Moxie Marlinspike’ over his previous ties with the Mobilecoin project.

The Relationship Between Mobilecoin and Signal

During the last week, Signal Messenger has been under fire for integrating the privacy-centric crypto mobilecoin (MOB). The subject has been trending on social media and forums as some crypto advocates are not pleased with the decision.
According to the MOB project’s website, the entire distributed ledger is “opaque” as “individual transactions are cryptographically protected, and the network uses forward-secrecy.” Since Signal’s announcement MOB has increased in value over 450% since then and today it’s up 20% during the last 24 hours.
MOB is currently trading for $58 per unit and the trading platform FTX Exchange is its most active market trading today. Controversy is tied to the relationship Marlinspike allegedly had with Mobilecoin prior to the integration. Word on the street is Marlinspike was simply a MOB advisor but documents show the Signal founder may have played a CTO role.
In addition to that, the project has been accused of being centralized, a copy of monero (XMR), and 100% pre-mined too. A pre-mine is when the network’s entire supply of native tokens is created right away and developers and early investors have access to it all.
“Mobilecoin is 100% premined,” the Reddit user and r/cryptocurrency forum moderator u/samsunggalaxyplayer said. “100% of the supply was created in 16 outputs that can be distributed however the initial founders like. There is extremely limited information about how they will be distributed, though it’s highly likely that the founders will keep some for themselves.”
‘Private Keys Stored on a Secure Enclave,’ Mobilecoin CEO Denies Marlinspike Was a CTO
The Redditor also said that Mobilecoin team members like to “discredit Monero wherever they can.” On Twitter, software developer Pokkst spoke out against the Mobilecoin project too. A few more things about Mobilecoin,” the developer tweeted. “When Mobilecoin is run with Intel SGX, user’s private keys are transmitted to remote nodes and stored in their secure enclave. Lol. Basically Intelcoin. It’s 100% premined, with a hardcoded 0.01 MOB fee per tx. Currently, that’s $0.66 per [transaction]. All [transaction] fees currently go to Mobilecoin Foundation.”
Pokkst said:

The creator of Signal has a huge stake in Mobilecoin, so Moxie is pumping his bags by using Signal.

Following the criticism over mobilecoin, people who disliked Signal integration with MOB started to recommend another encrypted messaging service called Session. The Session project leverages a blockchain and is a Signal fork. Despite the documentation showing Moxie as the CTO, Mobilecoin CEO Joshua Goldbard recently said that “Moxie was never CTO.”
 

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