Qubic Claims Monero 51% Attack Through Hashrate Takeover
Qubic, led by IOTA co-founder Sergey Ivancheglo, claims it executed a Monero 51% attack by boosting its hashrate from under 2% in May to a peak of 51% in August. The project redirected CPU mining power to Monero via a useful proof-of-work (uPoW) model, converting mined XMR into USDT to burn QUBIC tokens and reward its own validators.
On August 11, on-chain data recorded a six-block blockchain reorganisation, confirming the hashrate takeover but sparking a debate among Monero developers over whether this qualifies as sustained 51% control. The Monero 51% attack sent XMR’s price down over 5% to about $247, while QUBIC’s native token surged more than 20%, underlining trader sensitivity to network security risks.
Analysts warn that mid-cap proof-of-work networks remain vulnerable to economically driven hashrate concentration. This event highlights PoW vulnerability and underscores the need for stronger decentralisation and security measures across blockchain networks.
Bearish
The claim of a Monero 51% attack and the confirmed hashrate takeover triggered a more than 5% drop in XMR price, reflecting trader concern over network security. In the short term, this vulnerability is likely to sustain bearish pressure on Monero as investors reassess risks. Over the long term, persistent PoW vulnerabilities and potential for further reorgs could undermine confidence and limit price recovery unless stronger decentralisation measures are implemented.