There are a great deal of mixed ideas people have as to what will happen, mainly because Disney will not say one thing one way or the other. The only thing I know about the Kraken really was from St. Patrick's Day when the water turned green, it was supposed to be from the Kraken coming towards the Caribbean. Now that has been quite a while ago, and Disney has not said any thing else really about it. I only go by what messages appear on the site and in game, I would not take any thing the so called "Game Master's" say as the truth because they have let me down several times now with false promises.
Now just to speculate, if things go off like the movies are... we are going to have a quest that is some how related with Davey Jones, his heart in the chest, and the Kraken. More than likely we will make an attempt to get the heart, or possibly the EITC will be going for it as well as us to gain control of him. We will probably be faced by the Kraken at some point while doing this as a Boss Battle type situation. The ability for them to make Krakens and Sea Monsters as regular at sea enemies is going to be very difficult as far as lag goes, so it will probably only exist in a special "Treasure Map Location" like the Black Pearl Boss Battle. I can almost see it opening with a cut-scene of Davey Jones speaking to us with some thing along the lines of " So you have came after my Chest have you...blah blah blah.... You must first get passed the Kraken...etc" And the Boss Battle for the Kraken will then take place, hopefully leading directly into a chapter 3 from that point envolving weapons upgrades and special new skills and ships to be obtained before you can be strong enough to enter the next set of quests. More than likely the Boss Battle will end in us and our crew escaping but Jack being eaten, and sent off to The Locker, where we have to get him back from as the 3rd Chapter Story Quest.
Disney with their total lack of information as of late kind of makes me think they are just waiting for POTCO-UK to be ready to start up before they release the new things for us. More than likely the POTCO-UK will come out with all the new stuff we are getting already in it, while we receive an update to our current game.
Larence Tuppington