Following its recent attack on Monero, the AI-focused blockchain project Qubic has turned its attention to Dogecoin. In a vote within the Qubic community, Dogecoin (DOGE) was chosen by a large margin over Zcash and Kaspa. This development has fueled concerns in the already declining crypto market.
According to market data, DOGE opened Monday trading at $0.22, down nearly 5 percent.
Qubic's new target: Dogecoin
Qubic founder Sergey Ivancheglo, known by his nickname "Come-from-Beyond," asked the community which ASIC-powered proof-of-work (PoW) network should be targeted. The options included Dogecoin, Zcash, and Kaspa. Hundreds of supporters voted for Dogecoin, and Ivancheglo declared, "The Qubic community chose Dogecoin."
As previously reported, Qubic recently claimed to have reorganized six blocks, gaining 51% control of Monero's network. This has raised serious questions about Monero's security. Kraken exchange was even forced to temporarily halt Monero investments due to the risk.
Qubic's justification is striking: Ivancheglo stated, "Too much electricity is being wasted on useless PoW, we need this electricity for artificial intelligence." In other words, Qubic aims to serve its own AI-focused vision by targeting PoW networks.
Sharp Bitcoin Pullback
This threat to Dogecoin, combined with the generally negative market sentiment, further reduced risk appetite. Bitcoin (BTC) fell to $115,000 on Monday morning after reaching $124,000 last week.
The decline was driven by the higher-than-expected US Producer Price Index (PPI) released on Friday. This data has weakened the likelihood of a 50 basis point interest rate cut by the US Federal Reserve (Fed) in September. Furthermore, the Fed's Jackson Hole meetings are expected to begin this week. However, analysts predict that gradual 25 basis point cuts will occur in September and October. A report published by Coinbase Institutional stated, "As the Fed looks at the broader economic landscape, interest rate cuts will be inevitable."
Consequently, Qubic's move against Dogecoin has sparked a new debate about the security of PoW-based cryptocurrencies. A 51% attack seizes the majority of a network's mining power, enabling double spending and blockchain rewriting.
Dogecoin's much larger ecosystem compared to Monero makes the attack's chances of success uncertain. However, targeting DOGE, the most popular meme coin in the crypto ecosystem, could undermine investor confidence. As a result, the sharp pullback in Bitcoin and threats to Dogecoin are causing investors to remain cautious.
