Cryptocurrency exchange Kraken has suspended Monero deposits amid potential 51% attack threats, causing a stir in the crypto community.
Reasons for Suspending Monero Deposits
Kraken decided to halt Monero deposits as a precautionary measure to protect network security. The exchange stated that a single mining pool had reportedly gained over 50% of the network's total hashing power.
Suspicious Activity and Qubic's Statements
The suspicious activity was linked to Qubic, a mining pool and AI protocol. Earlier this week, Qubic announced that it had achieved majority control of Monero's hashrate, successfully reorganizing six blocks on the blockchain. This led to pushback from the Monero community.
New Approaches to Attacks in the Crypto Industry
The 51% attack on Monero is particularly noteworthy for money launderers seeking untraceable transactions and strong privacy features inherent to Monero. The RandomX algorithm was designed to deter ASIC mining, but Qubic introduced a unique 'useful proof-of-work' to incentivize Monero CPU miners towards its economic model.
The situation with Monero highlights the emergence of new economic mechanisms in attack contexts, potentially changing the game in the crypto industry.
