CDS Crypto News Market Impact of Crypto Hacks: 51.1% of Tokens Plummet Post-Exploit
Crypto News

Market Impact of Crypto Hacks: 51.1% of Tokens Plummet Post-Exploit

79
Market Impact Of Crypto Hacks 51.1% Of Tokens Plummet Post-Exploit

Immunefi CEO Warns: Crypto Hacks Trigger Long-Term Price Declines

Immunefi Ceo Warns: Crypto Hacks Trigger Long-Term Price Declines

In terms of price, most compromised coins are unable to recover from the exploit, as per the most recent on-chain security study. In the six months following the attack, the prices of almost 77.8% of compromised cryptocurrency continued to decline. According to an Immunefi analysis, six months after the protocol was compromised, 51.1% of the compromised tokens experienced a price decrease of more than 50%.

The millions lost to the hack immediately anticipate even larger losses, caused by market impact and dependency impact, alongside many months of lost time spent rebuilding your emotionally shattered team and operations.

Mitchell Amador, the founder and CEO of Immunefi

Hackers Target Centralized Finance: Over $636M Stolen in 2024 Alone

Hackers Target Centralized Finance: Over $636M Stolen In 2024 Alone

The disclosure coincides over a month after the second-biggest cryptocurrency breach of 2024—a hacker took over $230 million from the Indian cryptocurrency exchange WazirX. The majority of previous digital asset vulnerabilities were attributed to decentralized finance (DeFi) applications. But the worst weakness in the cryptocurrency market now lies in the centralized finance (CeFi) infrastructure, which Amador claims will bear the brunt of the losses by 2024.

  • CeFi vulnerabilities are responsible for $636 million of the $1.19 billion in digital assets that have been stolen so far in 2024.
  • Amador noted that because of the substantial sums of money involved—which may potentially yield hundreds of millions in unclaimed rewards—hackers are focusing more and more on CeFi infrastructure, such as cryptocurrency exchanges.

The Role of Robust Ecosystems: Why Do Some Cryptos Thrive After Hacks?

The Role Of Robust Ecosystems: Why Do Some Cryptos Thrive After Hacks?

On the other hand, following an exploit, some cryptocurrencies perform better. According to Amador, tokens that have a more seasoned crew and have previously been a part of bigger projects are more resistant to abuses. According to Amador, this is mostly because of the bigger ecosystems that support these tokens, which have greater purchasing power following a black swan event.

Recovered tokens include projects like BNB Chain, SushiSwap, THORChain, Olympus, and Optimism. All of these projects are either huge ecosystems themselves, such as BNB Chain or Optimism, or are longstanding protocols like SushiSwap, which have a dedicated community.

Amador

For more up-to-date crypto news, you can follow Crypto Data Space.

Market Impact Of Crypto Hacks: 51.1% Of Tokens Plummet Post-Exploit
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

Sui Blockchain Faces First Major Outage: What Happened and What’s Next

Sui blockchain faces its first major outage—learn what happened, the impact on...

MicroStrategy Stock Reaches New High as Bitcoin Surges Above $98,000

MicroStrategy’s stock surged to a new all-time high as Bitcoin reached $98,000,...

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana Face Resistance

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana...