What Is MonaCoin (MONA)?

MonaCoin (MONA) is a digital currency used predominantly in Japan. It was designed as a payment network for peer-to-peer transactions, bypassing exchanges or third-party involvement. The 澳洲幸运5官方开奖结果体彩网:cryptocurrency was created in 2013 and launched the following year by an anonymous individual whose identity has never been confirmed. MonaCoin generally uses a 澳洲幸运5官方开奖结果体彩网:blockchain identical to Litecoin. As Japan's first cryptocurrency, MonaCoin was named after an internet meme—a cat-like figure created using ASCII characters.

Understanding MonaCoin (MONA)

MonaCoin is a cryptocurrency launched in 2014. It was developed for use in Japan by an anonymous inventor called Mr. Watanabe. It was forked from Litecoin but does not use the same Scrypt algorithm—instead, it uses the Lyra2REv2 algorithm, which uses less power. It is also resistant to 澳洲幸运5官方开奖结果体彩网:ASIC mining machines.

MonaCoin has an active community of developers and users and was one of the first coins to implement SegWit in its blockchain. Transactions using the coin are much faster compared to Bitcoin. MONA can be purchased using 澳洲幸运5官方开奖结果体彩网:Japanese yen (JPY) or Bitcoin at cryptocurrency exchanges or smart ATMs in Japan. The coin is mainly used for tipping in online games. Some stores in Japan also allow purchases using MonaCoin.

While the Monappy platform is the unofficial hub of the MonaCoin community, MONA also trades on several Japan-based digital currency exchanges. MonaCoin has been approved by Japan's 澳洲幸运5官方开奖结果体彩网:Financial Services Agency, which deemed cryptocurrencies a legal payment method.

澳洲幸运5官方开奖结果体彩网:Speculation about why MonaCoin was created often focuses on a cultural desire in Japan to create national versions of well-known products. This desire is borne out of a demand for products and services that feel relatable by being made in Japan and havi🐻ng Japanese documentation and content written in Japanese.

Supply and Price of MonaCoin (MONA)

The total supply of MonaCoin is set at 105.12 million. The total supply in circulation was 65.73 million as of Oct. 11, 2023, and its market capitalization was $26 million.

The price of MonaCoin has remained below $2.00 for most of its history. For the first four years after its 2013 founding, the coin's price did not rise above $1.00 until MONA briefly traded for $16.61 in December 2017. In early 2022, MONA's price hovered around $1.00.

By the end of August 2022, MonaCoin's price hovered around $0.48, following a price decline in the global cryptocurrency market. As of Oct. 11, 2023, MONA traded at about $0.39.

How MonaCoin (MONA) Is Used

MonaCoin was one of the first coins to implement Segregated Witness (SegWit). Therefore, it has a faster transaction processing time than Bitcoin and other cryptocurrencies. When MonaCoin was introduced on the online Japanese forum 2channel (now 5channel), Mr. Watanabe stated that the cryptocurrency was not a security.

It was noted that the coin was part of a game whose goal was to find hashes in the MonaCoin network. MonaCoin was meant to be similar to points spent in the Monacoin n♉etwork. MonaCoin ♊is commonly used for a couple of different purposes:

• Tipping: MonaCoin is frequently used through 澳洲幸运5官方开奖结果体彩网:third-party mobile applications to pay tips, such as in online games.
• Payment: MonaCoin is accepted as payment by some Japanese stores, including online and 澳洲幸运5官方开奖结果体彩网:brick-and-mortar stores. Monappy is an online platform where MonaCoin holders can exchange MONA for digital assets like coupons, electronics, and other items.
  

How to Get MonaCoin (MONA)

If you're interested in buying MonaCoin, this is how the process works:

1. The transaction is initiated and submitted to the MonaCoin blockchain. Using a 澳洲幸运5官方开奖结果体彩网:cryptocurrency exchange such as Bittrex or Zaif, which lists MonaCoin, you can initiate a transaction to purchase MonaCoin. You need JPY or a cryptocurrency to buy MONA.
2. MonaCoin blockchain processes the transaction. Your MonaCoin transaction is processed using the 澳洲幸运5官方开奖结果体彩网:proof-of-work operating protocol, which requires miners to validate the transaction. At the same time that miners process MonaCoin transactions, new MonaCoin is minted and paid as rewards to the miners.
3. MonaCoin blockchain is updated. Within an average of 1.5 minutes of initiating your MonaCoin purchase, the transaction is complete, and the MonaCoin blockchain becomes longer by one block.
4. MonaCoin is stored in and accessible through your 澳洲幸运5官方开奖结果体彩网:digital wallet. That wallet may be hosted by the exchange where you bought the MONA or can be a non-custodial wallet such as a hardware device that enables offline storage.

Special Considerations

MonaCoin miners earn MONA rewards for processing new blocks of MonaCoin transactions. The amount of MONA paid as a block reward is, by design, halved every 1.051 million blocks. The reward per block is 12.5 MONA until the next halving, which will reduce the reward to 6.25 MONA (thought to be sometime in early November 2023).

With the MONA block reward halving approximately every one million blocks, the block reward changes about every three years.

Hackers have made away with MonaCoin by hacking exchanges and taking advantage of vulnerabilities in MonaCoin's storage app Monappy to hack it. The first hack occurred in 2018 when cryptocurrency worth $60 million was stolen in Japan from the virtual exchange Zaif. In a second hack a year later, an 18-year-old hacker stole 15 million yen worth of MonaCoin from 7,700 Monappy users.

The Bottom Line

MonaCoin was established in 2013 by an anonymous individual in Japan. Approved by the country's financial services agency, MONA can be used to give tips, as a payment method for online purchases, or for those made in physical stores. The coins are available on several exchanges.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info. As of the date this article was written, the author does not own cryptocurrency.