Qubic's mining influence on Monero rises to 30% raising manipulation concerns

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 5:11 pm ET1min read
Aime RobotAime Summary

- BitMEX Research warns Qubic mining group controls 30% of Monero's hashrate via leasing, raising manipulation risks.

- Qubic executed a six-block reorganization, consistent with selfish mining tactics to maximize rewards despite no double-spend evidence.

- Qubic claims 51% network control and issued its own token QUBIC, though motives remain unclear and claims are disputed.

- Analysts warn Qubic's dominance could undermine Monero's trust and value, prompting exchanges to increase deposit confirmations.

- The case highlights vulnerabilities in small-cap altcoins, urging investors to monitor on-chain activity for irregularities.

A recent report has raised concerns about potential manipulation of Monero (XMR), a privacy-focused cryptocurrency, with analysts from BitMEX Research warning that a mining group known as Qubic may have gained significant control over the network [1]. According to the analysis, Qubic appears to have executed a six-block reorganization, which is unusual in a blockchain that typically sees a new block every two minutes. While no evidence of a double-spend attack was found, the reorganization is consistent with selfish mining tactics aimed at maximizing block rewards [1].

The BitMEX team explained that Qubic’s influence over the Monero network appears to have grown from approximately 20% to over 30%, largely through hashrate leasing. This increase raises concerns, as a mining entity controlling more than a third of a blockchain’s hashrate can begin to influence block rewards and transaction confirmations. If Qubic were to reach a 51% majority, it could theoretically manipulate the network in ways that could undermine confidence in Monero [1].

Qubic has also issued its own token, QUBIC, and analysts have speculated that the mining group’s activities could be tied to efforts to boost the value of this token. However, the ultimate intent of Qubic remains unclear. In a published statement, Qubic claimed to control more than 51% of the Monero network, a claim that BitMEX has expressed skepticism toward [1].

If Qubic’s influence continues to grow, the consequences for Monero could be severe. Analysts warned that if Qubic manages to capture all block rewards, the long-term viability and trust in Monero could be compromised, potentially leading to a sharp decline in its value [1]. In response, BitMEX has advised cryptocurrency exchanges that support Monero to increase the number of confirmations required for deposits to reduce the risk of fraudulent activity [1].

The situation highlights broader concerns about the security and transparency of altcoin networks, especially those with decentralized governance and limited institutional oversight. With smaller-cap assets often being more vulnerable to targeted manipulation, investors are being urged to monitor on-chain activity, trading volume, and liquidity patterns for any signs of irregular behavior [1].

Source: [1] Bitcoin: News & Updates - Page 64 of 76 - CryptoDnes EN (https://cryptodnes.bg/en/tag/bitcoin/page/64/)