Monero Price Drops 10% Amid 51% Attack Fears and Mining Centralization Concerns

Monero (XMR) experienced a sharp price decline of more than 10% within 24 hours, as concerns emerged over reports of a 51% attack on the network [1]. According to HTX market data, the price of XMR fell to $246.61 during the period [1]. The drop was attributed to growing fears that a significant portion of Monero’s mining power had been concentrated in a single project, raising questions about the network’s security.

Earlier reports highlighted that Qubic, a project led by IOTA co-founder Sergey Ivancheglo, had rapidly amassed a large share of Monero’s mining power through the “useful Proof of Work (uPoW)” mechanism. On August 12, Qubic briefly controlled 52.72% of the network’s hashrate, or approximately 3.01 GH/s [1]. A 51% majority could theoretically allow an entity to reject blocks from other miners, trigger chain reorganization, enable double-spending, or censor transactions. The Qubic team clarified that the action was a demonstration rather than a malicious attack, while the Monero community mobilized to resist and defend the network.

The incident has reignited discussions around the vulnerabilities of proof-of-work blockchains to mining centralization, particularly in privacy-focused protocols like Monero. While such an attack is considered highly resource-intensive and improbable in practice, the mere possibility was enough to trigger a rapid sell-off among traders [1]. A Reddit user in a Monero-focused discussion noted that while the theoretical risk existed, a fully successful 51% attack on Monero was “basically impossible” with the current network dynamics [1].

The price drop highlights the heightened sensitivity of the cryptocurrency market to perceived security risks, even when the actual threat remains uncertain. Monero’s emphasis on privacy, while a core strength, also makes it a focal point for speculative and fear-driven market movements. The situation also reflects ongoing debates about the scalability and security trade-offs inherent in privacy-centric cryptocurrencies.

As the community continues to assess the implications, no official confirmation of a 51% attack has yet been issued, and further technical analysis will be necessary to determine the cause of the volatility [1]. Developers and miners are expected to play a key role in addressing the concerns and reinforcing the network’s resilience.

Source:

[1] https://www.reddit.com/r/Monero/comments/1mmkxkt/mining_%CF%99ubic_to_defend_monero_a_discussion/

[2] https://loyce.club/active/topics7d.html