Qubic Seizes 51% of Monero Hashrate, Sparks 6-Block Chain Reorg
Qubic, led by ex-IOTA co-founder Sergey Ivancheglo, claims a Monero 51% attack after raising its hashrate above 51% through a “useful proof-of-work” model. The project converts XMR mining rewards into USDT to repurchase and burn QUBIC tokens. Since May, its share climbed from under 2% to over 51% in August.
Blockchain data recorded a six-block chain reorganization. This sparked debate over whether the incident qualifies as a full 51% attack. Serai DEX lead developer Luke Parker argues it falls short of a complete takeover.
Blockchain.com CEO Nikita Zhavoronkov views the reorg as proof of Monero’s low security budget. He warns that Bitcoin could be a future target. Security experts flag privacy coins and mid-tier proof-of-work networks as vulnerable to hashrate dominance.
The incident triggered a 13% intraday slump in XMR to $244.42 and a 13.5% weekly drop. Qubic paused a full network attack, citing concerns over a price collapse. Traders should note potential volatility in Monero markets and reassess privacy coin risks.
Bearish
The Monero 51% attack claim and six-block reorg have undermined network confidence, triggering a 13% intraday XMR sell-off. Ongoing security concerns and miner incentive questions add downward pressure. Traders may remain cautious on Monero, anticipating further volatility and potential sell-the-news reactions in both short and long terms.