In Q2 2024, the number of crypto hacks continues to rise on the back of the bull market's return. According to ImmuneFi, losses amounted to $509M during this period.
Overview of Hacks in Q2 2024
ImmuneFi, one of the popular platforms for bug bounties, recorded losses amounting to $509 million in the second quarter of 2024. Hacks vary widely, from hundreds of millions in bridge exploits to smaller rug pulls with significant impacts on individual levels. Analyzing hacks from the 2021-2023 period, ImmuneFi noted the serious repercussions for some projects and networks, especially considering major exploits against Ronin, BNB Chain, and Wormhole bridges.
Impact of Hacks on Crypto Assets
On average, a hacked protocol loses more than $16 million. If a project has a native token, its market price can drop by 52% and remain depressed for up to six months. Some Layer 2 platforms may lose credibility, and DeFi products might disappear, unable to recover from the theft. The loss pattern for high-profile hacks is similar to the token price chart.
Vulnerability of Smaller Protocols
Smaller protocols, especially in DeFi, are often so vulnerable that they are completely destroyed by hacks. Meanwhile, major platform tokens like BNB, ETH, and SOL remain largely unaffected by hacks and exploits on their networks. In the case of SOL, even daily rug pulls are seen as beneficial to the overall network value and are not considered a threat.
Hacks are especially damaging to crypto startups with small teams, often leading to accusations of insider attacks and reputational damage. Developers may also spend time uncovering hacks, slowing down product roadmaps by three to four months.
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