Monero (XMR), a prominent privacy-centric cryptocurrency, is currently facing significant challenges, particularly concerning its security and network integrity. Reports are surfacing about the Qubic mining pool potentially executing a 51% attack, a scenario that raises serious concerns within the crypto community. Esteemed Bitcoin developer Peter Todd was among the first to spotlight these alarming developments, stating, “Fascinating. It appears Monero has encountered a substantial reorganization, possibly linked to this attack.” When probed about Qubic’s claimed dominance, Todd noted the complexities in measuring real-time hash power, remarking, “Such metrics are inherently challenging to quantify. Proof of Work dynamics are probabilistic in nature.”

Analyzing the Qubic Mining Pool’s Allegations Against Monero

A viral message shared by an account known as Coffeinated User outlined the alleged strategy of the Qubic mining pool and its impact on Monero. The account exclaimed, “Qubic has reportedly attained a 51% share of Monero, marking an unprecedented achievement. They are poised to orchestrate a cryptocurrency manipulation through a 51% attack. Their goal is to render all other miners obsolete, monopolizing Monero’s mining process.” Furthermore, this assertion introduced a claim regarding revenue-sharing models and burn mechanisms around QUBIC tokens, emphasizing, “Their operation is three times more lucrative than mining Monero directly, distributing half of the profits to miners while using the other half for QUBIC token buybacks and burning.”

The calculations provided in the post were bold: “If they manage all Monero block mining, this translates to 432 Monero mined daily, equating to roughly $118,342.08 at current rates. After distributing half to miners, Qubic would end up with profits around $59,171.04, allowing for a staggering $1.656 million in QUBIC tokens to be burned monthly. These figures are extraordinary.” The message further highlighted the market disparity, stating, “Qubic, with less than a $300 million market cap, will potentially dominate a larger $6 billion market cap asset.”

The XMR community reacted swiftly, with the account @monerobull describing the chain circumstances as extraordinary, encouraging users to mobilize and mine vigorously: “Monero has just witnessed its deepest reorganization to date. Everyone should head over to gupax.io to start mining. A significant halving is approaching for qtip in 20 days, after which it may prove challenging to sustain this attack.”

Charles Guillemet, CTO at Ledger, commented on the situation, shedding light on the implications of this campaigning tide: “Current observations indicate that Monero is undergoing a successful 51% attack.” He framed this moment within Monero’s troubled past, including history with governmental scrutiny and exchange delistings: “Launched in 2014, this privacy-focused blockchain has faced pressure from regulatory agencies and is already banned from numerous major centralized exchanges.”

On the attackers’ capabilities, Guillemet elaborated: “After months of accumulation, the Qubic mining pool now commands most of the network’s hashrate. This morning saw the detection of a significant chain reorganization. With their newfound control, Qubic can manipulate blockchain records, enabling double-spend scenarios and censure any transactions.”

Guillemet further noted the financial implications of sustaining such an attack, estimating costs around $75 million daily. He warned of the dire consequences for honest miners, stating, “Other miners face diminishing incentives as Qubic holds the power to orphan any competing blocks, likely leading to their withdrawal from the network.” He placed the implications in stark terms: “Essentially, a $300 million market-cap project is attempting to seize control over a $6 billion counterpart. Monero’s options for resurgence appear severely limited, putting the prospect of a complete takeover within reach.” He also examined market reactions, observing, “Thus far, XMR has only dipped around 13%.”

Within the Qubic initiative, Sergey Ivancheglo, known as “Come-from-Beyond,” exuberantly confirmed their achievements while calling for verification: “It seems #Qubic has successfully reached 51% control over #Monero; we await independent validation. Meanwhile, the #Monero team is refining their defenses against these 51% attacks.”

In refuting earlier suspicions about their motives, he remarked, “We’ve faced allegations of being backed by government agencies to undermine this privacy coin. What do you think now, considering we are helping Monero prepare for future confrontations with those agencies?”

Despite Todd’s highlighting of the probabilistic nature of Proof of Work, the simultaneous narratives from both critics and supporters create a vivid image of Monero navigating an ongoing majority-hashrate predicament, as its community swiftly endeavors to counteract the threats. This is a developing story as XMR sits at the trading price of $252.