Market News

Kraken Takes Precautionary Measures as Monero Faces 51% Attack Concerns

In a striking move, Kraken has suspended Monero (XMR) deposits following reports of a 51% attack on its blockchain.

This decision comes after Qubic, a mining pool, claimed to have gained control over more than half of Monero's hashing power.

Such a concentration of power raises serious security risks, including the potential for double-spending and transaction manipulation.

While trading and withdrawals for XMR continue, the suspension of deposits is a protective measure amid network instability.

Qubic's actions sparked controversy within the Monero community, with many denying that a successful attack occurred.

Critics argue that the six-block reorganization achieved by Qubic does not constitute a definitive takeover but rather an opportunistic disruption.

Despite the turmoil, Monero’s price rebounded, increasing over 10% to approximately $264, signaling resilience within the market.

The incident emphasizes the ongoing vulnerabilities associated with proof-of-work blockchains, particularly those experiencing centralization.

Kraken has assured users that deposits will only resume once the network stability is confirmed, reflecting its commitment to user security.

As the crypto world closely observes, this situation raises critical questions about the future of privacy coins and their inherent risks amidst a tumultuous landscape.