Well before Sea of Thieves developer Rare started teasing it, the game's Kraken has been on the minds of many of alpha and beta players.
This all started with good ol' datamining which took place during the Sea of Thieves closed beta.
Later, screenshots of the Kraken leaked out of preview event, all but confirming that it is in fact a monster players will come across in their travels.
The reveal of the Kraken itself in the game is actually pretty well done. It appears to be a random encounter, and the video below from super 21314 shows the whole thing from start to finish.
You're going to find out right away if you're about to get attacked by a Kraken when your ship suddenly comes to a stop, and the water turns black all around you. The Kraken will then root the ship in place, and the fight will start.
The action kicks off pretty impressively with tentacles attacking the ship, dragging people off and slamming it from various sides, but this is all there's to it, it seems. As you're about to see, once you're done destroying the tentacles, the fight is over.
You don't get to see the big monster surface, and you can't have these moments of expertly manoeuvring around it or escaping, which I am sure some imagined would be possible in Sea of Thieves.
Assuming Rare isn't hiding any other phases to this fight that will maybe trigger at higher levels, that's pretty much it.
You can watch the whole thing below (may be NSFW due to language):
If you're just jumping in yourself, be sure to check out our big list of Sea of Thieves error codes, where we explain exactly what error codes like CinnamonBeard, BronzeBeard, and GreyBeard mean and if you can fix them.