Kraken Suspends Monero Deposits After Hashrate Concerns
Kraken suspends Monero deposits following blockchain security incident. Monero price saw a decline but quickly recovered. Industry focuses on privacy coin centr...
- Kraken suspends Monero deposits following blockchain security incident.
- Monero price impacted with quick recovery noted.
- Industry focuses on privacy coin centralization risks.
A 51% attack on Monero, involving the Qubic mining pool led by Sergey Ivancheglo, occurred recently, prompting Kraken to suspend Monero deposits for security reasons.
This event highlights vulnerabilities in blockchain security, affecting confidence in Monero and privacy coins, with potential implications for market stability and future blockchain governance.
Blockchain Security Concerns
The Monero blockchain experienced a brief 51% attack where the Qubic mining pool, led by IOTA co-founder Sergey Ivancheglo, momentarily controlled a majority of Monero’s hashing power. This prompted Kraken to suspend Monero deposits as a security measure.
Qubic, operated by Sergey Ivancheglo, claimed control of Monero’s hash rate in a demonstration, not an attack. Kraken announced halting Monero deposits, citing concerns over a single pool’s dominance exceeding 50% of the network’s hash power.
Monero (XMR) saw a price decline of approximately 19% during the attack, which rebounded over 7% following miner actions. Kraken’s suspension affects only deposits, with trading and withdrawals still active.
Institutional confidence in Monero was affected, although no direct capital outflows occurred. Centralized exchanges are reevaluating listing and custody models in response to privacy coin security risks.
Historical similarities include centralization issues with Ethereum Classic and Bitcoin Gold. This marks a rare instance of exchange deposit suspension for Monero due to a 51% risk.
Community discussions indicate a focus on possible emergency proof-of-work changes. Hashrate redistribution and security awareness efforts are underway, addressing potential centralization risks in privacy coin networks.
“Qubic claimed to have seized control of the majority of Monero blockchain’s hash rate,” under the banner of a ‘useful proof-of-work demonstration’.
– Sergey Ivancheglo, Co-founder, IOTA
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