Cryptocurrency exchange Kraken has suspended Monero (XMR) deposits due to serious security issues with the network. Recent events involving the mining group Qubic have significantly impacted the situation.
Reasons for Deposit Suspension
Kraken suspended Monero deposits in response to identified security issues within the network. Despite this, users can still trade and withdraw XMR. Deposits will resume only after the network's security has been verified.
51% Attack and Its Consequences
The Qubic group, focused on AI technology, gained control of over 50% of Monero's hashrate and reorganized six blocks in the blockchain. This incident highlighted Monero's vulnerability, lacking the computational resources of larger currencies. Sergey Ivancheglo, who claimed responsibility for the attack, stated that Qubic restored its power after a DDoS attack.
Monero Community Reaction
The Monero community is actively discussing the implications of the attack. Some are hopeful for strengthening network security, emphasizing the risks posed by a single group controlling significant computational power. Discussions focus on how to enhance Monero's defenses, which provide transaction anonymity.
These events underline the risks associated with the centralization of mining power, especially for a significant coin like Monero. It is crucial for the community to work on improving blockchain security.
