In the fast-evolving world of cryptocurrencies, a new player named QUBIC has emerged from the shadows, stirring both intrigue and controversy. With a modest market cap of around $300 million, QUBIC recently made headlines by amassing enough mining power to disrupt Monero—a leading privacy-focused cryptocurrency—fueling fears of a potential 51% attack. But is QUBIC merely a predatory parasite exploiting weaknesses in established networks, or a disruptive innovator exposing vulnerabilities before malicious parties exploit them? Let’s dive into the enigma of QUBIC and examine what it means for the future of proof of work (PoW) cryptocurrencies.
The Genesis of QUBIC: A Unique Fusion of Blockchain and AI
Unlike many crypto projects that burst onto the scene unannounced, QUBIC traces its origins back to 2012, with roots intertwined with early developments of IOTA and NXT. Spearheaded by Sergy Ivanche, one of IOTA’s original founders, QUBIC has quietly evolved into a platform that blends blockchain technology with artificial intelligence. Central to QUBIC’s design is a concept dubbed “useful proof of work.”
Traditional PoW mining often faces criticism for wasting vast amounts of energy on computational puzzles with no real-world output. QUBIC’s twist involves redirecting this energy toward meaningful AI training tasks through a decentralized model named AI Gar. This dual-purpose approach ensures that mining not only secures the QUBIC network via its quorum-based consensus mechanism but also advances real AI applications—making mining both efficient and purposeful.
The Controversy: Targeting External PoW Networks with Economic Pressure
What has truly drawn widespread attention, however, isn’t just QUBIC’s innovative technology but its aggressive and unconventional tactics. Instead of focusing solely on its own network, QUBIC has started redirecting its growing hash rate to other PoW blockchains, beginning with Monero and soon possibly Dogecoin.
QUBIC isn’t attempting traditional 51% attacks that disrupt networks outright through brute force. Instead, it leverages economic incentives—mining competing coins like Monero, then selling them on the open market. The proceeds are partly used to burn QUBIC tokens and reward its own holders, artificially boosting QUBIC’s price while simultaneously draining value and confidence from the target networks. This approach skirts conventional attack models, making it a novel form of economic competition within the crypto ecosystem.
The Monero Incident: A Stress Test or an Attack?
In August 2025, QUBIC’s miners commandeered between 28% and 34% of Monero’s total hash rate, stopping short of a full 51% majority but enough to trigger a six-block blockchain reorganization. This led to the rolling back of transactions, orphaning over 60 blocks, sparking confusion and panic across the Monero community.
Through this operation, QUBIC mined approximately 517 Monero coins, worth around $141,000 at the time, which it quickly liquidated for stablecoins (USDT). Half of this revenue rewarded QUBIC token holders, while the other half was used to burn 33.5 billion QUBIC tokens, reducing supply and pumping QUBIC’s price by 57%. Conversely, Monero’s price plunged by up to 28%, with exchanges like Kraken temporarily halting Monero trading due to the turmoil.
QUBIC framed this as a proof-of-concept, exposing that PoW networks are vulnerable not because of technical flaws, but due to predictable economic behavior susceptible to exploitation.
The Road Ahead: Dogecoin and Beyond?
Following Monero, QUBIC’s founder—known pseudonymously as Come From Beyond—hinted that Dogecoin might be the next target. Considering Dogecoin’s daily mining rewards hover around $3.2 million, even a partial hash rate redirection to QUBIC could yield substantial profits, enabling further token buybacks and burns which would again bolster QUBIC’s value while destabilizing Dogecoin’s network and market.
QUBIC’s own white paper, published at project inception, unapologetically critiques traditional PoW for being inefficient and shortsighted. It advocates for mining to serve dual roles: securing networks and training decentralized AI models, heralding a vision for the next generation of meaningful mining.
Community Reaction: Parasite or Provocateur?
QUBIC’s actions and philosophy have sparked fierce debate within the crypto community. Supporters praise the project as a bold innovator shaking complacency and catalyzing evolution in PoW networks. Critics, however, see QUBIC as a parasitic “economic predator” exploiting other blockchains without contributing value to them, sowing chaos and eroding trust.
QUBIC’s economic model operates akin to a “vampire attack”: it siphons hash rate by offering better mining incentives rather than hacking, mines competitors’ coins, dumps them for stablecoins, then uses the proceeds to inflate its own token and deflate the competition’s value. The result is a sharp rise in QUBIC’s price paired with a crash in the attacked network’s market confidence.
This has real-world consequences. Monero’s six-block reorg shuffle shook investor confidence and led to discussions of emergency forks or algorithm changes to defend against such economic incursions.
Implications for Proof of Work: Is This the Beginning of the End?
QUBIC’s tactics throw down a gauntlet to PoW networks worldwide. If this strategy proves sustainable, other chains—Bitcoin, Litecoin, or smaller PoW coins without robust defenses—could be vulnerable to similar economic pressure campaigns.
On the other hand, QUBIC’s model is not without risks:
- It depends on finding fresh targets with open mining incentives.
- If attacked networks alter their mining algorithms or fork, QUBIC loses leverage.
- Community backlash and regulatory scrutiny could escalate, potentially limiting QUBIC’s long-term viability.
The social cost is also considerable. Intense backlash on platforms like Twitter paint QUBIC as a Trojan horse that undermines decentralized trust, potentially stalling innovation in PoW and inviting stricter regulatory oversight.
Conclusion: A Catalyst for Change or a Threat to Stability?
QUBIC’s emergence and its high-profile assault on Monero highlight inherent economic vulnerabilities lurking beneath PoW security assumptions. Whether seen as a disruptive whistleblower shaking up inefficient practices or a parasitic threat undermining ecosystem trust, QUBIC forces a painful reckoning.
For PoW to survive and thrive, networks might need to rethink mining incentives, explore hybrid consensus designs, or adopt new defense mechanisms to resist economic exploitation.
As QUBIC hints at targeting other major chains, the crypto space stands at a crossroads: evolve and fortify its foundations or risk being hollowed out by ventures that master not just code, but the ruthless economics of mining.
Only time will tell if QUBIC is the catalyst crypto needs for a smarter, more sustainable proof of work—or the harbinger of its decline.
By Wolfy Wealth - Empowering crypto investors since 2016
Subscribe to Wolfy Wealth PRO
Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile.
