- Kraken has paused Monero deposits due to one pool gaining over half of the network’s hashing power.
- Qubic mining pool claimed control of Monero hashrate and reorganized blocks raising security concerns.
- Monero developers and users are worried about centralization and its impact on network safety.
Kraken has paused deposits of Monero (XMR) following security concerns over the blockchain’s hashrate distribution. The exchange acted after observing that a single mining pool gained more than 50% of the total hashing power.
This scenario, known as a 51% attack, could allow the pool to alter transaction history. While Monero trading and withdrawals remain active on Kraken, deposits will resume only when network stability is restored.
Qubic Claims Majority Control of Monero Hashrate
The AI-focused blockchain Qubic claimed it gained control of over 50% of Monero’s hashrate. The pool stated it reorganized six blocks and orphaned over 60 others. These actions suggest temporary influence over the transaction history.
Qubic redirected mining efforts toward Monero at the end of June. It was initially the seventh-largest miner. By August 14, the group claimed majority hashrate dominance.
Despite facing a Distributed Denial of Service (DDoS) attack on August 4, Qubic quickly recovered. Its hashrate dropped to 0.8 gigahashes per second (GH/s) during the attack but later returned to 2.6 GH/s.
This gave it more than 50% of Monero’s total estimated 6.0 GH/s hashrate. The attack also reportedly resulted in the creation of approximately 750 XMR and 7 million XTM.
Monero Developers Question Severity of Attack
Monero developers disputed the claim of a successful 51% attack. They noted the reorganization of six blocks was not conclusive evidence. Some developers suggested the mining pool may have simply had high hash power at the right time.
They emphasized that reorganization alone does not confirm complete control over the network. Still, the development raises significant concerns over Monero’s mining distribution.
This is not the first time Monero has faced network stress. In March 2024, the network experienced a large-scale flooding attack. However, this current event marks a significant challenge to Monero’s decentralization. The centralization of mining power now poses a potential threat to transaction reliability.
Community and Market Reaction to Network Shift
The Monero community responded with mixed reactions. Some users questioned Qubic’s data while others urged miners to support smaller pools. This response reflects ongoing concerns over centralization in proof-of-work networks. According to Mining Pool Stats, Qubic still holds a significant share of Monero’s hashrate.
Despite the network concerns, Monero’s market performance remained relatively stable. XMR rose by 9% in 24 hours, trading at $265. However, it dropped 20% over the past week. The coin’s market cap is around $4.90 billion, with daily trading volume reaching $90 billion.
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