Monero Price Dips Over 8.6% Amid 51% Attack Fears

Monero has experienced a sharp price decline following reports that the Qubic mining pool may have successfully executed a 51% attack on the network. Over the past 24 hours, 60 blocks have been orphaned from the Monero blockchain, raising concerns among the cryptocurrency community about the integrity of the network [1]. The Monero Consensus Status dashboard highlights the instability, with 60 orphaned blocks recorded in the last 720 blocks [1].

Qubic, a mining pool incentivizing selfish mining strategies, has been accused of redirecting computational power to mine Monero and using the proceeds to buy and burn Qubic tokens, thereby increasing the value of Qubic while undermining Monero’s mining ecosystem [1]. Sergey Ivancheglo, founder of Qubic, confirmed in a public post that "Qubic has achieved 51% over Monero," though the claim awaits independent confirmation [1].

The alleged 51% attack has led to fears of potential network manipulation, including the possibility of double-spending transactions or selectively blocking them [1]. In a 51% attack scenario, a single entity gains control of more than half of the network’s hashing power, enabling them to manipulate the blockchain. Zhong Chenming, co-founder of crypto cybersecurity firm SlowMist, stated that the attack appears to have succeeded, adding that the attackers may now be capable of rewriting the blockchain and censoring transactions [1].

However, not all observers agree that a full 51% attack has occurred. Some argue that a high but not majority hash rate can still lead to orphaned blocks through selfish mining tactics without achieving a true 51% dominance [1]. According to CoinWarz, Monero’s total hashrate stands at approximately 5 GH/s, while Qubic’s reported peak hashrate was 3.01 GH/s—sufficient to disrupt the network temporarily but not to fully control it [1].

Luke Parker, lead developer at SeraiDEX, questioned the validity of labeling the event a "51% attack," stating that a six-block-deep reorganization does not necessarily mean the attack succeeded. He suggested that "an adversary with a high amount of hash got lucky," but this does not confirm long-term control [1].

The ongoing disruption has triggered an escalation in the so-called "hack war" between Qubic and Monero. Ivancheglo accused Monero developers of breaking Qubic’s selfish mining system, leading to a back-and-forth of countermeasures and disputes over alleged cyberattacks [1]. Earlier in the conflict, he claimed that a Monero mining software developer, Sergei Chernykh, had launched a denial-of-service (DDoS) attack against Qubic’s pool—claims Chernykh denies [1].

Niko Demchuk, head of legal at AMLBot, noted that Qubic’s actions could be classified as "computer sabotage" or "unauthorized access" under certain jurisdictions, though no law explicitly addresses 51% attacks [1]. The incident highlights the growing challenges in securing decentralized networks and the potential legal gray areas surrounding such attacks.

As of the latest available data, Monero’s price has fallen to over $247, a drop of more than 8.6% in 24 hours [1]. The market is now closely watching how the situation evolves and whether the network can recover from what appears to be a significant and coordinated disruption.

Source: [1] Monero price dips as Qubic likely succeeds in 51% attack (https://coinmarketcap.com/community/articles/689b3292e5de8d42b785ed52/)