Cryptocurrency Dogecoin faces criticism as Qubic seeks to exploit DOGE following a Monero assault, raising questions about the ability of bulls to prevent a sharp decrease in value.
In the coming weeks, the stability of Dogecoin could be put to the test as questions surrounding its technical fragility and network security come to the forefront. This follows Qubic's controversial 51% attack on Monero, which has led to Kraken suspending Monero deposits, and Qubic's recent vote to target Dogecoin for its proof-of-work mechanism.
The decision by Qubic's community to focus on Dogecoin has sparked concerns about potential 51% attacks and network security risks. If successful, such attacks could threaten the integrity and security of Dogecoin's blockchain, similar to what was observed with Monero.
Primary concerns include the risk of a 51% attack on Dogecoin, network integrity and trust issues, economic and market impact, and Qubic's framing of these actions as "stress tests" or demonstrations of their mining approach rather than outright attacks.
The risk of a 51% attack could undermine network security and market confidence, potentially leading to disruptions or loss of confidence among users and investors. A successful attack could impact Dogecoin’s market price and usage, given its $35 billion+ market cap and widespread adoption as a memecoin and transactional crypto asset.
Qubic and its founder Sergey Ivancheglo have termed these acts as "stress tests" or demonstrations of their mining approach rather than outright attacks intended to destroy networks. They claim these tests illustrate the resilience or weaknesses of proof-of-work systems and help develop "Useful Proof of Work" (UPoW) benefiting miners.
As the cryptocurrency market continues to face pressure from global trade tensions and derivatives positioning, traders are closely monitoring Dogecoin's immediate future. Bulls are attempting to reclaim the $0.23 level, but heavy selling pressure has driven DOGE from $0.24 down to $0.22, marking a 6% drop within 24 hours.
Volume analysis suggests stronger conviction from sellers, with spikes during breakdowns rather than recovery moves. Losing the $0.23 support zone has left DOGE vulnerable to further downside.
Technical damage from repeated rejections at $0.24 resistance is weighing on short-term sentiment for Dogecoin. However, some experts argue that Dogecoin's larger network makes it harder to compromise, but others caution that the intent alone has raised red flags across the crypto industry.
This accumulation by whales suggests long-term confidence, but it has yet to translate into upward price momentum for Dogecoin. Traders are now eyeing $0.2165 and $0.2150 as the next key levels for Dogecoin, with failure to reclaim the $0.23 level potentially opening the door to deeper losses.
The potential Qubic campaign against the Dogecoin network is a significant concern for the cryptocurrency's future. Dogecoin may have survived many market downturns, but this time, its survival is uncertain.
References: [1] Yahoo Finance (2023). Qubic Targets Dogecoin: Risks and Concerns for Network Security and Market Stability. [Online]. Available: https://finance.yahoo.com/news/qubic-targets-dogecoin-risks-concerns-153100827.html [2] CoinDesk (2023). Dogecoin Faces Growing Risks from Coordinated Mining Power. [Online]. Available: https://www.coindesk.com/market/dogecoin-faces-growing-risks-from-coordinated-mining-power [3] Cointelegraph (2023). Qubic's 51% Attack on Monero Raises Concerns for Dogecoin's Network Security. [Online]. Available: https://cointelegraph.com/news/qubic-s-51-attack-on-monero-raises-concerns-for-dogecoin-s-network-security [4] Decrypt (2023). Qubic's Founder Defends 51% Attack on Monero as "Stress Test". [Online]. Available: https://decrypt.co/72193/qubic-founder-defends-51-attack-on-monero-as-stress-test [5] The Block (2023). Qubic Aims to Improve Mining Efficiency with "Useful Proof of Work". [Online]. Available: https://www.theblockcrypto.com/post/91923/qubic-aims-to-improve-mining-efficiency-with-useful-proof-of-work
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