Dogecoin News Today: Small Crypto’s Big Vulnerability: Monero’s Security Shaken by AI-Powered Mining Shift

Monero (XMR) faced a significant security incident in August 2025 when Qubic, an AI-focused blockchain and mining pool, claimed to have executed a 51% attack on the cryptocurrency’s network. This event led to a six-block reorganization of Monero’s ledger, prompting exchanges like Kraken to pause XMR deposits and implement a 720-block confirmation threshold to safeguard transaction integrity [2]. The attack underscored a critical vulnerability in smaller Proof-of-Work (PoW) networks, where a relatively low hashrate and centralized mining incentives can create conditions for temporary dominance by external actors [3].

Monero’s hashrate, at approximately 5.5 gigahashes per second (GH/s), pales in comparison to Bitcoin’s 930 exahashes per second (EH/s), leaving it more exposed to concentrated mining power. Qubic exploited this by leveraging its “Useful Proof-of-Work” (UPoW) model, which offered miners enhanced profitability through token burns and AI-driven rewards, drawing a significant share of the network’s hashrate [2]. This strategy, while not involving direct double-spending, demonstrated how incentive misalignment could temporarily tilt mining rewards and destabilize consensus.

The incident sent shockwaves through the cryptocurrency market, with Monero’s price dropping by over 20% in the immediate aftermath, falling from around $300 to the mid-$250s. Analysts attributed this decline to investor concerns over network centralization and the potential for repeated attacks, which could erode trust in Monero’s decentralized structure [2]. The event also triggered a broader recalibration of market sentiment, with some investors redirecting attention to emerging presales and projects positioned as alternatives with more favorable risk profiles [2].

In response to the attack, the Monero community has begun evaluating several proposals aimed at strengthening the network’s security. These include merge-mining with larger PoW networks like Bitcoin, integrating ChainLock-style security mechanisms to prevent reorganizations, and exploring strategies to localize mining activity and reduce the profitability of external attacks [2]. These measures aim to rebalance mining economics and reduce the likelihood of similar incidents in the future.

The implications of the Qubic attack extend beyond Monero, highlighting broader vulnerabilities in the PoW model, particularly for smaller cryptocurrencies. The incident mirrors previous reorganization events on networks like Ethereum Classic, which saw a 4,000-block reorg in 2020. These cases reinforce the importance of distributed mining power and sustainable miner incentives in maintaining the integrity of PoW consensus [3]. Bitcoin’s vast hashrate and institutionalized mining infrastructure serve as a stark contrast, with attacks on its network deemed economically infeasible due to the scale of required resources.

Qubic’s activities have also drawn scrutiny as it turns its focus toward Dogecoin, a larger PoW network with a hashrate of approximately 2.78 petahashes per second (PH/s). While a brute-force attack on Dogecoin would require an estimated $2.85 billion in hardware and $2.5 million per day in electricity costs, Qubic could theoretically attempt a “vampire mining” approach by redirecting existing miners with enhanced rewards. However, several factors, including hardware incompatibility, institutional investments in ASIC infrastructure, and a broadly distributed mining ecosystem, make such an attack far less likely to succeed [5].

The Monero incident serves as a cautionary example for the broader crypto market, emphasizing the need for robust security frameworks and decentralized mining incentives. While the immediate impact on Monero’s price has been significant, long-term recovery hinges on the adoption of protocol upgrades that address the vulnerabilities exposed by the attack. Investors are now closely watching how the network adapts, with some shifting capital toward alternative projects that promise stronger security and growth potential.

Source:

[1] Decentralized AI: Ending the Monopoly on Superintelligence (https://qubic.org/blog-detail/decentralized-ai-ending-the-monopoly-on-superintelligence)

[2] How Will the Recent 51% Attack on Monero Affect the Price ... (https://coindoo.com/how-will-the-recent-51-attack-on-monero-affect-the-price-in-the-long-term/)

[3] Monero's Stress Test & The Risks to PoW Security (https://coinmetrics.substack.com/p/state-of-the-network-issue-326)

[4] Next 100x Crypto Presale vs Monero 51% Attack & BNB ... (https://captainaltcoin.com/blockchainfx-bfx-explosive-presale-2025-next-100x-crypto-presale-vs-monero-51-attack-bnb-price-surge)

[5] Qubic turns its attention to Dogecoin. Here's what investors ... (https://www.21shares.com/en-us/research/qubic-turns-its-attention-to-dogecoin-heres-what-investors-should-know)