Qubic's 27% Hashrate Control Tests Monero's Decentralization as Price Rises 100% YTD

Monero (XMR) faces a pivotal test as Qubic, a project led by IOTA co-founder Sergey Ivancheglo, escalates its controversial attempt to influence the privacy-focused cryptocurrency’s network. Qubic’s strategy relies on economic incentives rather than technical exploits, offering rewards for CPU mining Monero and channeling profits into buybacks and token burns to bolster its ecosystem. This approach has sparked concerns among Monero’s community, which prioritizes decentralization and anonymity [1]. As of July 19, 2025, Qubic controls 27% of Monero’s hashrate, raising alarms about potential systemic risks if its influence continues to grow.

The situation intensified as Qubic initially surged to the top of Monero’s mining pool rankings, prompting a backlash that pushed it to third-largest pool by press time. Despite this decline, analysts warn that the threat remains tangible, particularly with Ivancheglo hinting at rejecting blocks mined by competing pools. Such actions could lead to orphaned blocks, delayed confirmations, and disruptions to Monero’s trustless architecture. Dan Dadybayo of Unstoppable Wallet emphasized that centralizing mining power introduces risks of censorship, manipulation, and forced protocol changes, regardless of Qubic’s stated benign intent [1].

Adding to the uncertainty, Qubic plans to cease reporting its hashrate starting the Wednesday before its planned AI-powered mining demonstration on August 2. This opacity complicates risk assessments for network participants, exacerbating tensions in an already volatile environment. Despite these challenges, Monero’s price has shown resilience, trading at $325.06—down 1% weekly but up over 100% year-to-date. Technical indicators, including a Relative Strength Index (RSI) of 59.44, suggest the asset is not overbought and retains upward potential. Recent volume spikes and historical support levels between $150–$160 further reinforce investor confidence [1].

The Monero community’s swift response has curtailed Qubic’s initial gains, demonstrating the strength of decentralized governance. However, the evolving tactics of Qubic, including its refusal to disclose future hashrate plans, highlight the fragility of the network’s equilibrium. Analysts caution that while Monero’s price trajectory remains bullish, the psychological and technical pressures from this conflict could amplify volatility as the August 2 deadline approaches [1].

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