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**Monero (XMR) Price Plummets 15% Amidst Qubic’s Network Control Claim**
The privacy-focused cryptocurrency, Monero (XMR), has witnessed a drastic drop of 15% in its value over the past week. This sudden downturn is attributed to the claim by rival blockchain project, Qubic, that it has gained control over an astonishing 51% of Monero’s network computing power.
Qubic, founded by IOTA co-founder Sergey Ivancheglo, has allegedly achieved this milestone through economic incentives rather than malicious intent. The project converts Monero mining rewards into USDT stablecoins and uses these funds to purchase and burn its own QUBIC tokens. This novel approach combines mining strategy with a token supply reduction mechanism.
The sudden surge in Qubic’s control over the network has led to a sharp decline of 15% in XMR’s price, indicating significant trader uncertainty and concern about the future security of Monero’s network. The current market dynamics have pushed the coin’s value below its recent support levels, resulting in a critical drop.
Industry experts warn that this attack demonstrates vulnerabilities in mid-tier proof-of-work cryptocurrencies like Monero. Smaller networks are more susceptible to 51% attacks, which can lead to devastating consequences. Bitcoin’s massive hashrate makes such attacks prohibitively expensive, while smaller networks like Monero face more realistic threats.
The privacy-focused nature of Monero and similar coins raises concerns about the potential for transaction censorship. Qubic’s takeover could undermine the very core principle of decentralized, private transactions that these cryptocurrencies promise to users.
As the situation unfolds, the XMR community is assessing response options to mitigate this security risk.
Source: coincentral.com
