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. Traders start to hedge by looking into new projects that combine fresh narratives with fewer structural risks. This “rotation effect” has defined past cycles, with capital moving from older assets into younger ones during moments of disruption. It’s not about abandoning Monero’s mission of privacy, but about acknowledging that diversification into growth-stage projects can offset vulnerabilities in legacy ecosystems.
One name surfacing frequently in that conversation is MAGACOIN FINANCE. Analysts describe it as a presale standout, already flagged among 2025’s top five early-stage opportunities. Unlike legacy tokens grappling with structural fixes, MAGACOIN is entering the market with a clean slate: capped supply, verified audits, and branding power tied to real-world narratives that capture retail attention. Early allocation demand has been strong, with experts suggesting the project could see big gains of from its current entry levels as presale rounds tighten. For long-term investors shaken by Monero’s fragility, MAGACOIN offers a contrasting story, one built on timing, scarcity, and a fast-moving community narrative.
Healing Through Innovation: Proposed Security Upgrades
Recovery isn’t just about restoring confidence, it’s about reinforcing defenses. The Monero community is exploring several proposals:
- Merge-mining with stronger PoW networks like Bitcoin,
- Integrating Dash-style ChainLocks to lock in ledger history against reorg risks,
- Strategically localizing mining to dampen attack incentives.
These suggestions aim to rebalance economic incentives and minimize the feasibility of hash-power dominance.
Price Outlook: Risk Meets Resilience
Despite the turmoil, Monero is likely to recover, albeit cautiously. Over the long term, price stability will depend on timely adoption of security measures and transparency in network governance. Analysts suggest that with protocol enhancements, XMR could steadily reclaim mid‑$300 levels. Without them, however, risks remain. Prolonged uncertainty could depress valuation well into the $200–$250 range as investor trust recalibrates.
Broader Implications for Privacy Tokens
Monero’s crisis ripples out to the broader privacy coin ecosystem. Regulators and exchanges have historically viewed Monero with suspicion, often citing money laundering concerns. This attack reinforces that scrutiny and may accelerate delistings or limitations. The long-term health of privacy coins now hinges not just on privacy utility, but on cryptographic trust and decentralization.
Conclusion: Defense, Renewal, and Speculative Opportunity
The Qubic incident was not just a technical mess, it was a market moment. Monero now faces a critical crossroads: rebuild under new security frameworks or risk prolonged market sidelining. Investors who believe in privacy as a fundamental catalyst may view the drop as a low-risk entry point, but only if Monero strengthens fast. At the same time, speculative attention is shifting toward new narratives with upside potential, chiefly emerging presales like MAGACOIN FINANCE, which position themselves as fresh stories for 2025’s altcoin momentum.
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Reporter at Coindoo
Source: https://coindoo.com/how-will-the-recent-51-attack-on-monero-affect-the-price-in-the-long-term/