A new report from Immunefi reveals a harsh reality for the crypto market: hacked tokens struggle to recover their losses, often taking years. It even affects well-established projects, as nearly 80% of tokens were negatively impacted.
Crypto Hacks: Why Recovery Takes Years
According to the report shared exclusively with Cointelegraph, 77.8% of hacked cryptocurrencies experience a significant and prolonged drop in price, including more than six months after the attack. The fact that 51% of these tokens lose value, more than 50%, proves the decisive effect of security breaches on the market.
The millions lost in a hack are often followed by other losses from market fluctuations, business disruptions and, most importantly, the stress experienced by teams.
The time and other resources required to start the process of rebuilding trust and implementing the project are enormous, leaving the projects in a rather precarious position.
Crypto Heist in 2024: $1 Billion Disappears
This report comes at a time when there has been a series of attacks, including the $230 million loss on the WazirX exchange, one of the largest crypto losses in 2024.
Of course, some projects, especially those like BNB Chain and SushiSwap, were able to recover from such incidents, but they are exceptions. Most tokens can struggle, as smaller projects usually lack the financial and human support to recover.
It’s essential to note that the threat spectrum of cryptocurrencies is also widening as 2024 unfolds, with over $1.19 billion worth of digital assets stolen by hackers this year. Often in focus are centralized finance (CeFi) platforms, with these platforms believed to be responsible for over $636 million in such losses.
Since money is still being stolen, the crypto market needs appropriate security measures to prevent accidents that will be harmful to both users and the future development of cryptocurrencies.
See also: China intensifies approach to cryptocrime with first extradition from Thailand
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