Monero Price Falls 10% After Qubic Pool Gains 51% Hashrate Control

Qubic briefly controlled over 51% of Monero’s hashrate, sparking market concerns and triggering a rapid 10% price decline.

The mining pool’s dominance raised fears of potential blockchain manipulation, including transaction censorship and double-spending risks.

Other miners quickly reduced Qubic’s control from 51% to under 14%, restoring network balance and easing immediate concerns.

Monero’s market faced turbulence on August 12 when the Qubic mining pool obtained more than 51% of the network’s total hashrate. This level of control briefly gave Qubic the theoretical capacity to influence the blockchain’s operations.

The event raised concerns within the cryptocurrency community, as the pool’s dominance could enable chain rewriting, transaction blocking, and double-spending. Such risks triggered swift responses from key industry figures and market participants.

SlowMist founder Yu Xian and Ledger CTO Charles Guillemet publicly addressed the potential dangers of the situation. They noted that Qubic had been gradually gaining control over several months by providing incentives to miners.

Guillemet estimated that maintaining such hashrate dominance could cost $75 million daily, highlighting the financial strain of prolonged control. He cautioned that while it could suppress competition from other miners, it might also damage the network’s credibility and market stability.

Market Reaction and Price Impact

Following Qubic’s 51% control announcement, Monero’s price dropped from $276.69 to $251.35 within hours, marking a 10% decline. Market sentiment shifted quickly as traders reacted to the perceived security risk.

Qubic’s founder Sergey Ivancheglo confirmed the pool had reached majority control but denied any harmful intentions toward Monero. He stated that the move aimed to safeguard the network from possible hostile takeovers in the future.

Rapid Hashrate Recovery Eases Immediate Pressure

Despite the initial shock, Monero’s hashrate balance recovered within a short period. Other mining participants coordinated efforts to reduce Qubic’s share from above 51% to below 14%.

This swift recovery helped restore some confidence in the network’s security. The incident, however, has left the Monero community alert to the potential for similar events and the need for ongoing vigilance in maintaining decentralization.

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