In the dynamic realm of cryptocurrency, unexpected developments can have significant implications for market dynamics and security. Recently, claims by Qubic, a project spearheaded by Sergey Ivancheglo, a co-founder of IOTA, have sparked widespread concern. On August 11, 2025, Qubic announced it had achieved majority control of the Monero blockchain’s hashrate. This revelation has heightened fears regarding the security vulnerabilities of mid-cap Proof-of-Work (PoW) blockchains amidst potential incentive-driven takeovers.
The Impact of Qubic’s Alleged Monero Hashrate Control
Understanding the Qubic Maneuver on Monero
Qubic’s operation relied on an innovative “useful proof-of-work” (uPoW) model, shifting substantial mining power toward Monero. This model allowed them to convert mined XMR into USDT, which was then used to buy and burn QUBIC tokens or reward validators within their network. This strategic action lured miners away from other mining pools, gradually escalating their share from under 2% in May to a claimed 51% by August. Qubic has emphasized that this was an experimental endeavor intended to examine the potential of incentives in shifting network control rather than disrupting Monero itself.
Reports from various media, including mentions on the platform X, indicate that a six-block reorganization occurred within the Monero blockchain, demonstrating that Qubic holds a considerable segment of the hashrate. Should Qubic maintain this majority stake (exceeding 50%), it could potentially censor transactions, execute double-spending operations, and reorganize blocks freely. Such control would enable them to reverse confirmed transactions, threatening the blockchain’s fundamental integrity.
Expert Opinions on the Situation
The Monero development community has responded by clarifying that chain reorganizations do not inherently equate to a 51% attack. According to Luke Parker, the lead developer at SeraiDEX, a six-block network reorganization with block orphaning does not conclusively indicate a successful 51% attack, but rather suggests a mining group with significant hashrate made a fortunate calculation.
Charles Guillemet, the CTO of Ledger, highlighted the financial implications of maintaining such dominance, estimating costs at $75 million per day for equipment and operations. He cautioned that even a brief perception of dominance could severely impact confidence in Monero.
Skepticism remains within the Monero community about Qubic’s sustained control. Blockchain engineer Leonardo Faoro noted that miners do not require a full 51% hashrate to instigate reorganizations; approximately 35% is sufficient when paired with favorable timing. This perspective was echoed by Monero founder Riccardo Spagni on the platform X.
Market Reactions
The aftermath of Qubic’s assertion was promptly reflected in Monero’s market standing. Following the announcement, Monero’s value plunged to $245. Currently, Monero trades at $247, marking declines of 5.3% within the last 24 hours and 15.2% over the past week. In contrast, Qubic’s native token experienced a significant uptick, rising by 20.5% in the last 24 hours.
Frequently Asked Questions
What are the potential consequences of Qubic’s majority control over Monero?
If Qubic sustains majority control over Monero’s blockchain, they could theoretically manipulate blockchain operations, including transaction censorship and block reorganization. This could undermine the network’s integrity and investor confidence.
How does the “useful proof-of-work” model work?
Qubic’s uPoW model leverages CPU mining power directed at Monero, converting mined cryptocurrency into USDT to enhance their ecosystem. This approach strategically redirects mining resources, impacting the overall hashrate distribution.
Can Monero recover from this incident?
Monero’s recovery depends on how effectively the community addresses security concerns and reinforces network resilience. Transparent communication and strategic mitigation efforts are crucial to restoring market confidence.
What should investors consider in light of this situation?
Investors should closely monitor developments concerning Monero’s security measures and broader market responses. Diversifying investments and staying informed through reliable financial platforms like Finances Zippy can help navigate potential risks.
