XMR plummets 12% as Qubic pool executes 51% attack on Monero network

Monero’s native token, XMR, dropped nearly 12% on August 12, 2025, following a successful 51% attack on its blockchain network by the Qubic mining pool [1]. The attack triggered a major chain reorganization, with six blocks reorganized and the winning chain dominated by "unknown" miners, a pattern strongly pointing toward Qubic's control [1]. The move allowed Qubic to take over the network’s hashrate, giving it the ability to double-spend coins, rewrite the blockchain, and censor transactions, all of which undermined Monero’s decentralized consensus model [1].

Charles Guillemet, founder of cybersecurity firm SlowMist, noted that Qubic had been amassing hashrate for months, reaching a critical threshold that enabled the attack [1]. The dominance has led to the orphaning of blocks mined by other pools, reducing the profitability of independent miners and raising concerns over the future of Monero’s mining ecosystem [1]. With diminishing financial incentives, many miners may exit the network, further consolidating Qubic’s control [1].

The attack has not only disrupted Monero’s operations but also dented investor confidence. XMR dropped from $277 to an intraday low of $245, a decline of over 12% within 24 hours [1]. Despite the setback, Monero remains the leading privacy-focused cryptocurrency with a market cap of $4.55 billion [1]. However, its security and decentralization are now in question after Qubic, a project with a market cap of around $290 million, took control of a billion-dollar blockchain [1].

Maintaining the 51% attack is also a costly endeavor for Qubic, with estimates suggesting it could spend up to $75 million per day to sustain dominance [1]. While the potential for economic gains through censorship and double-spending is high, the associated risks are equally significant [1]. If the attack fails to yield substantial returns, it could become a financial dead end, further damaging the credibility of Qubic’s strategy [1].

The incident highlights the vulnerability of even well-established blockchain projects to small but well-resourced miner pools [1]. Monero’s privacy features, while valuable to users, have also drawn regulatory scrutiny and led to its exclusion from major centralized exchanges [1]. The current situation raises concerns about whether the network can recover from such a centralizing event and restore trust among its community [1].

The XMR price currently trades at around $248, showing strong selling pressure on the daily chart [1]. While the decline has been relatively modest compared to the severity of the hashrate takeover, the future remains uncertain [1]. For Monero to regain its decentralized footing, independent miners must mobilize and challenge Qubic’s hold on the network [1]. If they fail, the project may face a prolonged period of centralization, contradicting the core principles of blockchain technology [1].

Source: [1] XMR price dips 12% as Qubic pool seizes control of Monero network (https://invezz.com/news/2025/08/12/xmr-price-dips-12-as-qubic-pool-seizes-control-of-monero-network/)