In mid-August, the cryptocurrency Monero (XMR) faced a 51% hashrate attack orchestrated by the group Qubic, led by Sergey Ivancheglo, a former co-founder of IOTA. This event significantly impacted the blockchain and prompted reactions from major cryptocurrency exchanges.
Monero Under Attack
In mid-August, Qubic, led by Sergey Ivancheglo, managed to gain control over the majority of Monero's hashrate. The group manipulated the Monero mining ecosystem by offering incentives through its token model, allowing them to accumulate significant mining power and initiate deep chain reorganizations.
Kraken Suspends Deposits
As the Monero blockchain became increasingly unstable, the major exchange Kraken suspended all XMR deposits. This move was made to protect users from potential losses due to possible double-spending or other exploits enabled by the 51% control.
Qubic's Plans for Dogecoin
Despite the pushback, Qubic has no intention of backing down. The group has already voted to shift its focus to mining Dogecoin (DOGE). With the different mining structures, the warning is clear: any network lacking sufficient decentralization is vulnerable to such attacks.
The situation with Monero highlights the importance of decentralization in blockchain technologies. The Qubic attack raises questions about the security of smaller and mid-sized Proof-of-Work networks, where hashrate centralization remains a significant threat.
