How the 51% Attack on Monero Could Shape XMR’s Long-Term Outlook
The post How the 51% Attack on Monero Could Shape XMR’s Long-Term Outlook appeared on BitcoinEthereumNews.com.
Crypto News Monero’s reported 51% hash‑rate takeover raised alarm, paused deposits, and sparked debate on protocol resilience. Analyze the structural impact on XMR’s price from this event. In August 2025, Monero was rocked by an alarming event: Qubic, an AI‑powered blockchain and mining pool, claimed it had executed a 51% takeover of Monero’s hash rate, accompanied by a six‑block reorganization. As exchanges like Kraken froze XMR deposits and the community fought to regain control, the incident exposed critical vulnerabilities in Monero’s decentralized design. While the network survived the immediate threat, the episode prompted urgent discussions on security upgrades and PoW resilience. As privacy coins navigate this moment of recalibration, forward-looking investors are also eyeing fresh opportunities, among them, rising presales like MAGACOIN FINANCE, which are gaining attention for their early‑cycle potential. What Really Happened: Qubic’s Disruption On August 11, 2025, Qubic claimed it had achieved control of over 50% of Monero’s hash rate and successfully pulled off a six-block reorg. Qubic’s “Useful Proof-of-Work” (uPoW) model rewarded hashers beyond traditional mining through integrated on-chain AI computing, drawing significant hash rate from other pools. Although direct double-spends were not confirmed, the reorg sparked widespread concern. Kraken responded by pausing XMR deposits, re-enabled only after imposing a 720-block confirmation delay per deposit to safeguard platform integrity. Resuming trading and withdrawals, Kraken maintained the precautionary status while closely monitoring network stability. Immediate Market Reaction The shockwave was immediate: XMR’s market capitalization dropped more than 20%, trimming sentiment and liquidity. Price dipped from around $300 to the mid‑$250s, reflecting investor anxiety. It wasn’t purely technical, it was directional, rooted in fears of repeated attacks and centralization risks. Analysts now frame Monero’s short-term outlook as precarious, hinging on how swiftly security enhancements are deployed. When established networks like Monero face security shocks, investor psychology often shifts.…
Filed under: News - @ August 27, 2025 3:26 am