Crypto trade Kraken has introduced a short lived stoppage of Monero (XMR) token deposits on its platform. This transfer is available in response to the continuing 51% assault in opposition to the Monero blockchain, an open-source protocol and privacy-focused community.
For context, a 51% assault refers to a state of affairs the place a gaggle of miners features greater than 50% of a blockchain’s mining hash fee. On Tuesday, August 12, Qubic, a challenge led by IOTA co-founder Sergey Ivancheglo, claimed that it has seized management of the vast majority of the Monero blockchain’s hash fee.
According to the Qubic mining pool, the 51% assault was executed utilizing a helpful proof-of-work (uPoW or UPoW) mechanism. As reported on Bitcoinist, the Qubic staff is taking half the mining earnings in XMR, changing them into USDT to purchase QUBIC tokens, after which sending them to a burn tackle.
Why Did Kraken Suspend Monero Deposits On Its Platform?
In an August 15 replace on its web site, Kraken introduced that it’s briefly stopping the deposit of Monero tokens on its buying and selling platform after detecting {that a} single mining pool has taken management of greater than half of the blockchain’s complete hashing energy.
The cryptocurrency trade stated:
This focus of mining energy poses a possible threat to community integrity. We are actively monitoring the state of affairs and can resume deposits as soon as we decide it’s secure to take action. Trading and withdrawals for XMR stay totally operational.
Following the discharge of Qubic’s declare, rising reviews on social media platform X revealed that there certainly was a six-block reorganization on the Monero blockchain, suggesting that the staff does management a big sufficient portion of the hash fee.
As Kraken talked about, it’s value noting that Qubic’s seizure and management of the vast majority of Monero’s complete hashing energy might be considerably detrimental to the decentralized ethos of blockchain expertise. As it stands—with Qubic controlling 51% of the hash fee, the community is prone to transaction censoring, double spends, and blocks reorganization, undermining the blockchain’s integrity.
XMR Price Overview
The response of the XMR worth to those claims of a 51% assault on the Monero blockchain has been pretty measured. While the altcoin did lose greater than 10% of its worth instantly the information broke out and an extra 5% within the subsequent days, the Monero token appears to be recovering effectively.
As of this writing, the Monero token is valued at round $265, reflecting an almost 12% leap prior to now 24 hours. Meanwhile, CoinGecko knowledge exhibits that the altcoin is down by solely 4% on the weekly timeframe.
The worth of XMR on the every day timeframe | Source: XMRUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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