US crypto exchange Kraken is warning Monero (XMR) holders that deposits could be halted at any moment now that the coin has become the victim of a 51% attack.
In an update, Kraken says it has re-enabled XMR deposits after suspending the service on August 15th.
[adinserter block="1"]At the time of the suspension, the crypto exchange says the move served as a precaution after detecting that a single mining pool had gained 51% of XMR’s total hashing power.
“This concentration of mining power poses a potential risk to network integrity.”
For now, Kraken says that it will monitor the situation closely and provide updates as they come.
A 51% attack is when a single entity or group gains control of more than 50% of a blockchain’s hash rate, allowing them to manipulate the network and take away its decentralization.
In a statement, artificial intelligence (AI) and blockchain-focused network Qubic said last week that after “a month-long, high-stakes technical confrontation,” it had successfully gained control of the Monero network.
“With the takeover test now complete, the Monero network’s core functionality remains intact. Its privacy, speed, and usability have not been compromised. However, the end goal is for the Monero protocol’s security to be provided by Qubic’s miners. This way, the rewards would be funneled through Qubic’s pools, bringing higher profitability and creating a new, higher incentive landscape for Monero miners.
This historic event is a testament to the power of economic incentives and a smaller protocol’s ability to outmaneuver a much larger one.”
Qubic (QUBIC), which has its own crypto project ranked 230th by market cap at $372 million, says that it has “successfully asserted its dominance over a $6 billion market cap privacy giant.”
“The implications of this event will resonate throughout the crypto industry, providing a blueprint for future interactions between protocols and a stark reminder that in decentralized systems, economic incentives are the ultimate arbiter of power.”
XMR is flat on the week despite the attack.
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