In a bold and controversial move, Qubic, co-founded by IOTA’s Sergey Ivancheglo, has announced plans to control 51% of Monero’s hashrate, sparking intense debate and a 1.1% price dip for XMR. Meanwhile, QUBIC’s token surged 9.5%, reflecting market curiosity and skepticism. Here’s what you need to know.
Qubic’s 51% Monero Hashrate Experiment: What’s Happening?
Qubic plans to dominate Monero’s mining power from August 2 to August 31, calling it an “economic experiment” to test Proof-of-Work (PoW) vulnerabilities. The platform will convert mined Monero into USDT to buy and burn QUBIC tokens, creating a deflationary model. Key points:
- Qubic rapidly became Monero’s largest mining pool in May, reaching 27% hashrate.
- It has since dropped to fourth place but aims to regain dominance.
- The move has raised concerns about centralization and censorship risks.
Why Is the Cryptocurrency Community Alarmed?
Analyst Dan Dadibayo warns that 51% control poses serious threats, regardless of intent. Risks include:
- Block and transaction rejection from other miners.
- Delayed confirmations and suppressed competition.
- Potential enforcement of protocol changes.
Monero’s community has rallied behind supportxmr.com, which now holds ~33% of the hashrate to counter Qubic.
QUBIC Token Surges 9.5% Amid Controversy
While Monero’s price dipped 1.1%, QUBIC’s token surged 9.5%, reflecting mixed reactions. Some see it as an innovative experiment, while others fear systemic risks.
Blockchain Security at Stake: The Bigger Picture
This episode highlights the tension between innovation and security in decentralized systems. Qubic claims to expose PoW flaws, but critics argue such experiments risk undermining trust.
FAQs
1. What is Qubic’s goal with the 51% Monero hashrate grab?
Qubic describes it as an “economic experiment” to test PoW vulnerabilities and promote its deflationary token model.
2. Why is a 51% hashrate dangerous?
It allows control over transaction validation, enabling block rejection, delays, and potential censorship.
3. How has Monero’s community responded?
Miners are rallying behind supportxmr.com to counterbalance Qubic’s influence.
4. Why did QUBIC’s token price surge?
The controversial strategy has sparked curiosity, though skepticism remains.
