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3 min readAugust 13th

Qubic Claims 51% Control Over Monero Network

Qubic, led by IOTA co-founder Sergey Ivancheglo, claims to have achieved majority control over Monero's hashrate, potentially enabling block reorganization and transaction censorship.

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Key takeaways

🚨 Critical Security Threat: Qubic claims over 51% control of Monero's hashrate, potentially enabling block reorganization and transaction censorship

📉 Price Impact: XMR dropped 6.65% in 24 hours and 16% over the past week amid the controversy

⛏️ Mining Economics: Qubic's "useful proof-of-work" model converts XMR mining rewards to USDT to buy and burn QUBIC tokens

🔬 Expert Concerns: Industry figures warn this could be a live 51% attack, though some question the actual impact and sustainability

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Deep dive

The controversy centers on Qubic's rapid rise from controlling less than 2% of Monero's hashrate in May to claiming over 51% by August 2025.

Led by IOTA co-founder Sergey Ivancheglo, Qubic uses an innovative "useful proof-of-work" model that incentivizes miners by converting Monero mining rewards into USDT, then using proceeds to buy and burn QUBIC tokens.

While some experts like Ledger's CTO warn of a successful 51% attack with potential for sustained control costing $75 million daily, others question whether Qubic can maintain this dominance long-term.

The situation highlights fundamental vulnerabilities in proof-of-work networks when faced with economically motivated attacks, potentially forcing a reevaluation of what truly secures decentralized networks in competitive, profit-driven environments.

Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.

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