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The Qubic community, fresh off a successful 51% attack on Monero, has voted to target Dogecoin next. This decision, announced by Qubic founder Sergey Ivancheglo, signals a potential shift in focus for the AI-focused blockchain project, raising concerns for other proof-of-work cryptocurrencies.
Qubic's Monero Takeover
Qubic recently announced it had gained majority control over the computing power securing the Monero network. The Qubic mining pool successfully reorganized six blocks after a month-long competition for network hashrate dominance. While Qubic stated that Monero's core functionality, privacy, and speed remained intact, their stated goal was for Qubic's miners to provide the network's security. Following this event, cryptocurrency exchange Kraken temporarily suspended Monero deposits due to potential risks to network integrity, though withdrawals and trading remained open.
Dogecoin Chosen as Next Target
Following the Monero incident, Qubic's founder, Sergey Ivancheglo, solicited community input on which ASIC-enabled, proof-of-work blockchain should be targeted next. Options included Dogecoin (DOGE), Kaspa (KAS), and Zcash (ZEC). The Qubic community overwhelmingly chose Dogecoin, with over 300 votes, surpassing all other options combined. Dogecoin, with a market capitalization exceeding $35 billion, now faces potential scrutiny from Qubic's mining power.
Impact on Dogecoin and Market Sentiment
The announcement has coincided with a dip in Dogecoin's price, which slipped 4% on Monday, approaching a key support level at $0.21. On-chain data from Santiment indicates that Dogecoin holders have been realizing losses, with the Network Realized Profit/Loss (NPL) indicator showing a significant negative dip. Furthermore, the long-to-short ratio among traders has reached a monthly high, suggesting a bearish sentiment as more traders bet on a price decrease. Technical indicators on the daily chart, such as the RSI hovering at 50 and converging MACD lines, point to indecision in the market. A close below $0.21 could lead to further declines for DOGE, potentially towards $0.18, while a recovery might see it test resistance at $0.24.
Key Takeaways
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Qubic, after a 51% attack on Monero, has voted to target Dogecoin next.
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Dogecoin was chosen by the Qubic community with a significant majority of votes.
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The move has coincided with a price drop and bearish sentiment indicators for Dogecoin.
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Kraken temporarily suspended Monero deposits following Qubic's takeover of its network.
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The targeting of another major proof-of-work coin raises concerns for the broader crypto ecosystem.
Sources
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Monero's 51% Attacker, Qubic, to Target DOGE Next, Cointelegraph.
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Qubic community votes to target DOGE after Monero attack, FXStreet.
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The heart of the internet, Reddit.
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