Kraken Suspends Monero Deposits as Qubic Pool Hits 51%
Kraken has suspended Monero deposits after Qubic mining pool seized over 51% of the network’s RandomX hash power. The freeze on Monero deposits is a precaution against potential double-spending, block reorganizations, or transaction censorship. Withdrawals and trading of XMR remain active. Qubic, led by IOTA co-founder Sergey Ivancheglo, has increased its grip to roughly 56% of Monero’s hash rate, claiming the move improves network efficiency. Other pools are urging hash rate redistribution to preserve network decentralization. Monero (XMR) price slid 3%, while trading volume jumped 20% as traders reposition. The incident highlights centralization risks in privacy coins and may prompt protocol updates to strengthen Monero’s defenses.
Bearish
Kraken’s suspension of Monero deposits following Qubic’s majority hash rate puts immediate sell pressure on XMR, evidenced by a 3% price drop and rising trading volumes as traders hedge risk. In the short term, fear of centralization prompts bearish sentiment. However, potential protocol updates to decentralize hash power and strengthen network security could mitigate long-term risks. Traders are likely to monitor developments closely, with a cautious outlook until deposit services resume and community-driven defenses prove effective.