- Cryptocurrency Sector and Hack Attacks
- Details on the Issue
- Concluding Thoughts on Crypto Platform Security
According to an on-chain security report, most hacked cryptocurrencies do not recover in terms of pricing from these attacks. More than 77.8% of hacked cryptocurrencies experienced continuous negative price effects six months after the hack.
Cryptocurrency Sector and Hack Attacks
Immunefi’s founder and CEO Mitchell Amador states that hacked protocols sustain most of the damage after the hack. He said: “The millions lost in hacks immediately foresee greater losses caused by months of rebuilding your emotionally shattered team and operations due to market and dependency effects.”
Details on the Issue
Some cryptocurrencies perform better after a hack attack. According to Amador, historically, tokens belonging to larger projects with more established teams are more resilient to attacks: “Recovered tokens include projects like BNB Chain, SushiSwap, THORChain, Olympus, and Optimism. All these projects are either large ecosystems like BNB Chain or Optimism, or long-standing protocols with dedicated communities like SushiSwap.”
Concluding Thoughts on Crypto Platform Security
Crypto attacks remain one of the biggest barriers to the mass adoption of cryptocurrencies, as the amount of stolen funds in 2024 could surpass the previous year. By February 29, over $200 million had been lost due to attacks since the beginning of the year, reflecting an increase of more than 15% compared to the same period in 2023, when $173 million worth of crypto assets were stolen.
Cryptocurrency hacks continue to negatively impact their prices and create significant barriers to the mass adoption of new financial technology. The security issues in CeFi and DeFi need serious attention to mitigate risks and losses in the future.
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