Privacy-focused cryptocurrency Monero (XMR) is experiencing one of the most serious crises in its history. According to statements by both SlowMist founder Yu Jian and Charles Guillemet, CTO of hardware wallet manufacturer Ledger, a 51% attack on the Monero network has been successfully carried out.
Cybersecurity expert Yu Jian stated that a mining pool called Qubic has theoretically reached the power to rewrite the blockchain on Monero's network. This would allow attackers to double-spend and censor transactions. Jian stated that the attack was quite costly, and the economic gain for the attackers is unclear at this stage.
Ledger CTO Guillemet stated that this development has been unfolding gradually over the past few months. According to Guillemet, Qubic has been increasing the hashrate on the Monero network for a long time and has now gained majority control of the network. "As of this morning, I detected a major reorganization in the chain. This is a clear indication that the attack was successful," Guillemet said, emphasizing that Qubic, with its current power, can reorganize the blockchain as it wishes.
Small Chain Attacks the Giant Monero Network
Qubic, a separate blockchain project in its own right, is ranked 222nd on CoinMarketCap. With a market capitalization of approximately $300 million, it is effectively taking control of Monero, which currently has a market capitalization of approximately $6 billion. Guillemet described this as "a small chain taking control of a massive network."
Ledger CTO stated that the daily cost of such an attack is around $75 million, but that it could destroy trust in the Monero network overnight. If other miners lose their incentives and abandon the network, Qubic is likely to remain the sole XMR miner. In this scenario, Monero's chances of recovery would be extremely limited.
Market reaction was harsh
After news of the attack spread, XMR price fell by as much as 9 percent. The price fell from $276.29 to $252. Experts say that Monero currently has few defenses against this attack and that it is "likely" that Qubic will take full control of the network.
Monero, launched in 2014, is known for offering completely anonymous and untraceable transactions. However, due to its privacy-focused nature, it has been delisted by many major centralized exchanges. This attack represents a serious blow to Monero, which already has limited access.
Experts emphasize that such 51% attacks are not technical attacks, but economic ones. Qubic must cover high costs to sustain this operation in the long term. However, if the goal is simply to gain control of the network, the attack could completely change Monero's fate within a few days. As the crypto community watches the developments with concern, relevant platforms and exchanges have been warned to be more vigilant against potential threats in Monero.
