Monero Faces 51% Hashrate Attack by Qubic

Monero (XMR) endured a 51% hashrate attack in mid-August, orchestrated by the Qubic protocol. Sergey Ivancheglo , a former IOTA developer, led the effort, significantly impacting the Monero network’s stability.

The attack demonstrated chain reorganization, unsettling the Monero blockchain. Ivancheglo’s previous endeavors in distributed ledger technologies have been controversial, raising concerns about Monero’s future security.

Post-attack, Monero’s market suffered a price decline of 6.65% within 24 hours. The cryptocurrency community witnessed increased withdrawal volumes from exchanges due to concerns about network integrity.

Financial actions by Qubic, like converting mining rewards into USDT, fueled liquidity adjustments, reflecting broader uncertainties in cryptocurrency markets.

Despite operational disruptions, Monero’s transaction speed and privacy features remained steadfast. Kraken suspended Monero deposits, emphasizing safety until the network security can be reaffirmed.

Historical trends show similar attacks on networks like Ethereum Classic, highlighting the need for enhanced security measures. Market repercussions continue, urging Monero’s developers to reinforce blockchain defense mechanisms. Charles Guillemet, CTO, Ledger, remarked, “Monero appears to be in the midst of a successful 51% attack,” expressing concern about chain reorganization after the takeover.