Immunefi Report Reveals Crypto Hacks’ Long-Lasting Impact

A new report from Immunefi, a leading blockchain security company, sheds light on the severe consequences of cryptocurrency hacks. The study shows that most hacked cryptocurrencies struggle to recover their value, even months after an attack.

According to Immunefi’s findings—as reported by Cointelegraph—nearly 80% of cryptocurrencies that fall victim to hacks face ongoing price problems. Six months after being hacked, about 78% of these digital coins are still worth less than before the attack. Even worse, more than half of hacked tokens lose over 50% of their value in the same time frame.

Immunefi CEO Makes Comments on the Development

Mitchell Amador, the founder and CEO of Immunefi, told Cointelegraph that the damage from hacks goes beyond just stolen funds. He pointed out that crypto hacks can harm a project’s reputation, cause market panic, and force teams to spend months rebuilding instead of moving forward.

While decentralized finance (DeFi) platforms used to be hackers’ main focus, the report highlights a shift towards centralized finance (CeFi) targets. In 2024 so far, CeFi hacks account for $636 million of the $1.19 billion stolen in total.

Amador noted that hackers are increasingly drawn to centralized exchanges and services because of the potential for huge payouts. A single successful attack on a major exchange could net hundreds of millions of dollars.

Not All Crypto is Created Equal

Interestingly, some cryptocurrencies bounce back better than others after a hack. Tokens from well-established projects with large ecosystems tend to be more resilient. Examples include BNB Chain, SushiSwap, THORChain, and Optimism.

Amador explained that these projects often have dedicated communities and more financial resources to weather the storm. This support can help them recover faster from the negative effects of a hack.

Crypto hacks remain a major obstacle to wider adoption of digital currencies. The report suggests that 2024 might see even more money stolen than in previous years. By late February, hackers had already taken over $200 million, up 15% compared to the same time in 2023.