Shares of Quantum Computing Inc. (QUBT) plummeted 5.02% in intraday trading on Thursday, as investors reacted to significant developments in the quantum computing landscape and potential threats to cryptography.

The sell-off appears to be triggered by two major news events in the quantum computing sector. First, tech giants IBM and Cisco announced a collaboration to build a foundation for networked distributed quantum computing, aiming to create a quantum computing internet by the early 2030s. This partnership combines IBM's expertise in practical quantum computers with Cisco's innovations in quantum networking, potentially intensifying competition in the quantum computing space.

Adding to the market jitters, Ethereum co-founder Vitalik Buterin warned at the Devconnect conference that quantum computing might break Elliptic Curve Cryptography before the 2028 U.S. presidential election. This statement sparked intense debate in the crypto community, with some experts supporting the assessment of imminent quantum threats to cryptographic algorithms, while others argued that the timeline might be overly aggressive.

The combination of increased competition from established tech companies and growing concerns about the potential disruption of cryptographic systems by quantum computers appears to have shaken investor confidence in Quantum Computing Inc. As the quantum computing landscape evolves rapidly, smaller players in the industry may face challenges in competing with well-resourced tech giants and addressing emerging security concerns.