Warning on This Altcoin: Founder of Another Altcoin Says They Want to Take Over 51% of the Network

Privacy-focused cryptocurrency network Monero ($XMR) is battling a potential network control attempt by a new blockchain project called Qubic, led by IOTA co-founder Sergey Ivancheglo (CFB).

Qubic incentivizes CPU mining of Monero to fuel its token economy with an innovative system it calls “useful proof-of-work” (uPoW). In this process, mined $XMR is converted into USDT, which is then used to purchase and burn QUBIC tokens, aiming to create a deflationary model.

According to the data, since May 18th, Qubic’s share of the global hash rate on Monero has increased from less than 2% to over 27%. This briefly made Qubic the largest Monero mining pool, but it fell to seventh place after a backlash from the community.

Ivancheglo announced on social media platform X that he plans to seize 51% of Monero's total hash power between August 2nd and August 31st, 2025. He claimed this move was intended to showcase Qubic's technology and had no malicious intent. However, he warned that this move could lead to serious consequences on the Monero network, such as block rejections, the creation of orphaned blocks, and transaction delays.

Ivancheglo also said that starting August 2nd, Qubic will no longer publicly disclose its mining pool hash rate on Monero, “to highlight the risk of 51% dominance.” “Just like the Monero community, I am also looking for a countermeasure against Qubic’s 51% dominance,” he said, adding, “This is critical for the crypto industry because one day we could all face a malicious attack.”

There have been allegations within the Monero community that Qubic is renting out its hashing power or using bots, but no definitive proof has been found yet. Unstoppable Wallet analyst Dan Dadybayo said the situation is more economic than technical: “Ivancheglo is creating incentives for Monero miners to leave the network of their own volition.”

Dadybayo suggested that Monero’s daily security budget is around $130,000, but for a cost of just $7,000-$10,000, one party could buy majority control of the network.

*This is not investment advice.