Published on augustus 25, 2024, 12:22 am
Image source: Fox News
```json [ "TLDR: A recent on-chain security report by Immunefi and Cointelegraph reveals that over 77.8% of hacked cryptocurrencies face negative price impacts six months post-hack, with 51.1% experiencing price declines exceeding 50%. CeFi platforms have become prime targets for hackers, accounting for a significant portion of stolen digital assets in 2024. Tokens with strong teams and projects show more resilience post-exploit events. The crypto industry faces ongoing challenges in enhancing security measures to combat hacking incidents." ] ```
Crypto protocols often face significant challenges after experiencing an exploit, with some tokens displaying more resilience in such situations. Recent data from an on-chain security report suggests that the majority of cryptocurrencies that have been hacked struggle to recover from the aftermath of the breach, particularly in terms of pricing impact.
The report reveals alarming statistics, indicating that over 77.8% of hacked cryptocurrencies continue to suffer negative price impacts six months post-hack. Even more concerning is the fact that 51.1% of these tokens witness significant price declines exceeding 50% within the same timeframe following the exploit. These findings were shared in a report by Immunefi with Cointelegraph.
Mitchell Amador, founder and CEO of Immunefi, highlights that the real damage to hacked protocols unfolds post-exploit. Moreover, recent incidents like the WazirX hack, where over $230 million was stolen from an Indian cryptocurrency exchange, underscore the vulnerability of digital assets in today’s landscape.
Traditionally, decentralized finance (DeFi) applications bore the brunt of digital asset exploits; however, centralized finance (CeFi) infrastructure has emerged as a prime target for hackers in 2024. Amador notes that CeFi vulnerabilities contributed to a staggering $636 million out of $1.19 billion worth of digital assets stolen this year.
Hackers are increasingly setting their sights on CeFi infrastructure like crypto exchanges due to the immense financial gains at stake. The rise in attacks underscores the importance of robust cybersecurity measures in safeguarding user funds against malicious activities.
Interestingly, not all cryptocurrencies react similarly to exploits. Tokens associated with well-established teams and larger projects tend to exhibit greater resilience post-exploit events due to their strong ecosystems’ buying power during challenging times.
Despite ongoing efforts to enhance security measures within the cryptocurrency sphere, hacks remain a significant obstacle to widespread adoption. Concerns loom large as hacking incidents show no signs of abating; by February 29th this year alone, losses due to hacks exceeded $200 million—an increase of over 15% compared to a similar period in 2023.
As stakeholders navigate these challenges and strive for greater security standards within the industry, it becomes increasingly crucial to fortify defenses against potential threats and vulnerabilities lurking within the crypto space.
Original article posted by Fox News
