Kraken, a major cryptocurrency exchange, has temporarily stopped accepting Monero (XMR) deposits. This is due to a reported 51% attack on the Monero blockchain.
What’s a 51% Attack?
A 51% attack happens when a single group controls over half the computing power (hash rate) used to secure a blockchain. This gives them the ability to manipulate the blockchain, potentially causing problems like double-spending (spending the same coins twice) and reversing transactions.
Qubic’s Claim and Kraken’s Response
The Qubic project, led by a co-founder of IOTA, claimed responsibility for the attack, stating they control the majority of Monero’s hash rate using a special mining method. Kraken reacted by suspending XMR deposits to protect its users. They said they’ll resume deposits once they’re sure it’s safe. Trading and withdrawing XMR are still possible.
Reports on X (formerly Twitter) showed evidence of blockchain manipulation, supporting Qubic’s claim. This kind of control over a blockchain undermines the whole idea of decentralization. It creates risks like censorship of transactions and manipulation of the blockchain’s history.
Monero’s Price: A Relatively Calm Reaction
Despite the attack, Monero’s price hasn’t crashed. While it initially dropped by over 10%, it’s since recovered some of its value. At the time of writing, it’s trading around $265, showing a slight increase over the past 24 hours. The overall weekly change is relatively small.