Kraken has suspended Monero deposits following Qubic pool's accumulation of over 50% hashrate, raising security concerns.
Kraken's Response to Hashrate Concentration Threat
Kraken has temporarily paused Monero (XMR) deposits after detecting significant hashrate concentration by the Qubic mining pool. According to David Ripley, CEO of Kraken, the decision aims to protect the network from potential manipulation due to the pool's control over 50% of Monero's network hashing power.
Following this action, XMR trading and withdrawals continue unaffected, emphasizing the limited scope of the suspension. This event raises concerns about the risks of centralization in mining pools.
Monero's Historical Vulnerabilities and Market Impact
The recent Monero hashrate event reflects historical vulnerabilities evident in past 51% attacks on similar proof-of-work networks like Ethereum Classic, raising questions about privacy coin safety.
As of the latest data from CoinMarketCap, Monero (XMR) trades at $255.36, with a market cap of $4.71 billion, reflecting 0.12% dominance. Over the past 24 hours, the price increased by 8.41%, but shows a downward trend over 90 days at -25.27%.
Market Reactions to the Monero Situation
Market reactions have included heightened scrutiny of privacy coins like Monero. While major figures and regulatory bodies have not yet commented, the event has sparked community discussions on decentralization and network security risks. Debate continues online, focusing generally on the need for more distributed mining operations.
The incident involving the Qubic mining pool highlights the need for ongoing monitoring of hashrate concentration to ensure the security of privacy-focused networks and raises the importance of analyzing security protocols.
