Monero, a well-known privacy cryptocurrency, is facing a successful 51% attack executed by the Qubic project, which has managed to take over more than half of the network's hashrate.
State of the Monero Network and Qubic Attack
Monero may have become the target of a successful 51% attack after the Qubic project seized control of the network's hashrate. Analysts have already noted the occurrence of block reorganizations, potentially leading to double spending. Estimates suggest that the attack would cost Qubic up to $75 million in a single day.
Qubic's Strategy and Its Impact on Monero
Qubic, founded by Sergey Ivancheglo, employs a mix of tokenized incentives for mining. Increased block rewards attracted many miners to Qubic, bolstering its influence in the network. Qubic's primary goal is to establish monopolistic control over the history of Monero's blocks.
Market Reaction to the Attack and Monero's Prospects
As a result of the attack, the price of XMR dropped by 10.4%, reaching a three-month low of $246.98. Most of the XMR activity remains on KuCoin, while smaller markets operate on Kraken. Currently, no exchange has announced any double spending in their wallets.
The situation surrounding the Qubic attack highlights the vulnerabilities of the Monero network to attacks, particularly given the low hashrate. This event may dramatically change the operation and philosophy of privacy blockchain networks.
