Dogecoin Faces Threat as Qubic Community Votes for Attack
On Monday, Dogecoin (DOGE) found itself in a precarious situation as the Qubic community, known for its audacious moves in the blockchain space, chose to target the popular cryptocurrency over others like Zcash and Kaspa. DOGE was trading at around 22 cents, reflecting a 4% decline in value over the past 24 hours, as reported by CoinDesk. This decline follows a promising bullish golden crossover pattern that emerged last week, only to fizzle out before gaining the expected bullish momentum.
Qubic’s Bold Announcement
Early Monday, Qubic, an AI-focused blockchain project, made headlines by revealing its intention to set its sights on Dogecoin. The community announced this through their official X account, stating: “There are ongoing discussions about $DOGE and preparation will take time.” Qubic also raised questions regarding blockchain resilience, hinting that they might possess tools to address these concerns.
Sergey Ivancheglo, the founder of Qubic, initiated a community vote to determine which ASIC-enabled proof-of-work blockchain would become the target of a potential 51% attack. Among the options, including notable candidates like Kaspa and Zcash, the overwhelming choice was Dogecoin. “The Qubic community has chosen Dogecoin,” Ivancheglo confirmed on X, generating significant buzz and concern within the crypto space.
The 51% Attack
Qubic is no stranger to controversy. Just recently, the project executed a successful 51% attack on Monero, a privacy-focused blockchain, gaining majority control over its hash rate. Such an attack enables the perpetrator to manipulate the network, potentially leading to double spending and other malicious activities that could undermine the integrity of the target cryptocurrency. The choice to target Dogecoin raises fears over its security, especially considering the growing scrutiny over the resilience of proof-of-work blockchains.
Market Sentiment Shifts
In conjunction with the threat posed by Qubic, Dogecoin’s Futures Open-Interest-Adjusted Cumulative Volume Delta (CVD) indicator has seen a significant downturn, dropping nearly 1% over the past 24 hours—the largest decline among the top 25 cryptocurrencies by market capitalization.
CVD serves as a technical indicator that measures the net buying or selling pressure. A negative CVD indicates stronger selling pressure than buying pressure, often interpreted as a bearish signal. Such a trend suggests a leaning towards ongoing declines in Dogecoin’s price, as more market participants are offloading their holdings rather than acquiring new ones.
Meanwhile, the broader cryptocurrency market, including Bitcoin (BTC) and Ethereum (ETH), has exhibited a similar bearish profile—except for Chainlink (LINK), which appears to be the only token showing a positive CVD.
Bitcoin’s Market Movements
As for Bitcoin, it experienced a notable drop, trading close to $115,000—down from a record high of over $124,000 achieved just days before. This decline can be tied to a hotter-than-expected U.S. Producer Price Index (PPI) data released on Friday, which has led to a more cautious outlook regarding forthcoming Federal Reserve rate cuts.
Analysts from Coinbase Institutional emphasized that while the Federal Reserve seems hesitant to adjust rates aggressively, there are still expectations for a 25-basis-point cut as early as September. The uncertainty surrounding essential economic indicators, combined with the challenges posed by the recent PPI data, keeps the market on edge.
Observers are eagerly awaiting remarks from Fed Chair Jerome Powell at the upcoming Jackson Hole Symposium, which could provide clarity on the central bank’s strategy moving forward.
Observing the Landscape
Despite the looming threat against Dogecoin and the broader market’s shift toward bearish sentiment, many observers are monitoring these developments closely. The cryptocurrency space remains volatile, with frequent news updates that can lead to sudden changes in market dynamics. The concerns over blockchain security and the potential consequences of a coordinated attack only add to the complexity of navigating this ever-evolving landscape.