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Kraken Reinstates Monero Deposits Amid 51% Attack Concerns

The U.S. cryptocurrency exchange Kraken has recently re-enabled deposits for Monero (XMR) following a temporary suspension due to a significant threat posed by a 51% attack.

This precautionary measure was enacted on August 15 when a single mining pool managed to gain control of over half of Monero's total hashing power.

Kraken emphasized its commitment to network integrity, stressing that such a concentration of mining power could jeopardize the blockchain's decentralized nature.

The situation around Monero has been closely monitored, with Kraken hinting that deposits might be halted again if risks emerge.

A project named Qubic claimed responsibility for the attack, asserting that they successfully dominated the Monero network's hashing capabilities.

Despite the upheaval, Qubic claims to maintain Monero's core functionalities, including its privacy features, while aiming to elevate profitability for miners in the future.

The incident serves as an important reminder of the economic incentives that can drive control in decentralized systems.

Monero's price has exhibited resilience; after an initial dip following the attack news, it has recently seen a notable recovery.

As the crypto landscape evolves, this event underscores the complexities and challenges faced by privacy-focused coins like Monero.

Stakeholders are urged to remain vigilant about the dynamics of mining power and network security in the ever-changing blockchain environment.