Market News

Monero Under Spotlight as Kraken Responds to Alleged 51% Attack with Deposit Halt

Kraken, a leading global cryptocurrency exchange, has suspended Monero (XMR) deposits in response to claims of a 51% attack on the privacy-centric blockchain.

This precautionary step aims to safeguard users, although trading and withdrawals for XMR remain uninterrupted.

Despite the deposit freeze, Monero's market resilience has been impressive, with its price surging over 10% to around $264.

The controversy started when an AI-driven protocol, Qubic, claimed dominance over Monero's hashing power, sparking concerns about the network's decentralization.

Qubic alleged it could manipulate transactions during the purported attack, but this assertion has faced strong opposition from the Monero community.

Critics argue that Qubic never actually gained majority control, aiming instead to disrupt through selfish mining tactics.

Meanwhile, Kraken has signaled it is monitoring the situation closely and will reinstate deposit services once stability is confirmed.

In a contrasting development, Kraken has also enhanced its support for Monero, reflecting a rising interest in privacy coins amidst regulatory scrutiny.

This duality of actions illustrates the complex dynamics of Monero's standing within the cryptocurrency landscape as it navigates challenges and opportunities.

Overall, Kraken’s involvement underscores a significant moment for Monero, highlighting both risks and potential growth in its adoption.