A recent security report reveals a grim reality for hacked cryptocurrencies. The study shows that 77.8% of these digital assets never recover from the damage inflicted on their prices. Once compromised, most of these tokens remain in a prolonged decline, struggling to regain their previous value.
Six months after a hack, the situation appears even more dire. Most hacked tokens remain significantly devalued, with their prices deep in the red. The report further details that 51.1% of these tokens experience a loss of more than 50% within this period. The impact of such attacks is devastating, eroding half of their market value.
Surge in Crypto attacks: A growing concern
The frequency and severity of crypto attacks have surged dramatically. In 2023, crypto thefts amounted to $657 million, a substantial figure. However, this number more than doubled in the first half of 2024, reaching a staggering $1.4 billion. This alarming trend highlights the growing sophistication of hackers, who are becoming increasingly bold in their exploits.
Decentralized finance (DeFi) platforms and exchanges are particularly vulnerable and often serve as prime targets for these attacks. Hackers exploit weaknesses in smart contracts and employ phishing scams to gain unauthorized access to wallets that are supposed to be secure. Both small projects and major players in the industry have fallen victim to these breaches.
High-profile hacks: No one is immune
Several high-profile hacks have shaken the crypto industry in 2024. DMM Bitcoin, a well-known Japanese exchange, suffered a massive loss of $308 million due to an âunauthorized leak.â This incident underscores that even established platforms are not immune to such attacks.
LIFI, a cross-chain DeFi platform, experienced a security breach that resulted in a $10 million loss. Similarly, Velocore, another decentralized exchange, was also targeted and lost $10 million. These examples demonstrate that no one is safe, not even the newer projects with advanced blockchain technology.
Ongoing threats: The battle continues
At the start of 2024, a relentless wave of attacks was seen. Orbit Chain, for instance, lost $81.5 million on January 2nd, crippling its cross-chain operations. A day later, Radiant Capitalâs DeFi lending protocol was exploited, resulting in a $14 million loss. Uwu Lend was hit twice in one week, losing $19.3 million. Even Kraken, a major name in the crypto industry, was not spared, as a targeted phishing attack cost them $3 million.
Other significant losses include LIFIâs $10 million hack and DoughFinaâs $1.8 million loss due to a vulnerability in a smart contract. These incidents highlight the ongoing threat hackers pose to the crypto industry, and there are no signs of these attacks slowing down.
The growing number of sophisticated attacks is causing irreversible damage to hacked cryptocurrencies. With most of these tokens unable to recover their value, the industry faces a significant challenge in securing digital assets and maintaining investor confidence.
The post Over 77% of Hacked Cryptos Never Recover Their Price Losses first appeared on Coinfea.
