Cryptocurrency exchange Kraken has suddenly put a stop to the deposit of privacy-centric Monero (XMR) on its platform. The company made this decision after discovering 51% attacks on the token’s blockchain. It is worth noting that withdrawals and trading for XMR remain open on the crypto platform.
Understanding the Monero 51% Attack
Kraken introduced a temporary suspension of XMR deposits on the basis of the identified 51% exploitation of the token. Unfortunately, this situation raises questions about the security of the Monero blockchain, even though it has been one of the longest-standing assets in the market.
The 51% attack is a situation when one mining pool gains control of more than 50% of a blockchain network’s total hashing power.
This empowers such a mining pool with the ability to double-spend and reorder transactions on the ledger. Apart from reversing transactions, the single mining pool in control could also block new ones.
Qubic Takes Over 51% of Monero Blockchain
In Monero’s case, Kraken claims that its action is only a precautionary measure, especially as the current state of the mining pool “poses a potential risk to network integrity.”
Layer-1 AI-focused blockchain and mining pool Qubic has claimed responsibility for the majority of Monero’s hashrate. In other words, it is the single mining pool with major control over the blockchain.
So far, it has reordered six blocks, a move that prompted denials of the attack from the Monero community.
The news of Kraken’s suspension has sent some shockwaves through the broader crypto community. Meanwhile, the announcement has not had any notable impact on XMR price at this time. According to CoinMarketCap data, the privacy token is trading at $264.71, equivalent to a 1-day 9.29% spike.
Kraken Plans to Secure $500 Million for 2026 IPO
On the other hand, the U.S.-based Kraken is looking forward to a public listing by 2026. To this end, it is allegedly seeking to raise $500 million in funding at a valuation of $15 billion.
The move aligns with the crypto exchange’s broader strategy to go public. Precisely, it is eyeing a potential listing targeted for as early as the first quarter of 2026.
There are a lot of other companies in the crypto and fintech space considering an IPO as well, with many others expected to show interest soon.
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