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Insight: Nearly 80% of Hacked Cryptocurrency Projects Fail to Fully Recover, Operational and Trust Breakdowns Cited as Major Reasons
BlockBeats News, January 18th, according to Cointelegraph, Web3 security platform Immunefi CEO Mitchell Amador stated that nearly 80% of crypto projects that have experienced a major hack have never fully recovered. Most protocols are fundamentally unaware of the level of risk they face from hacking and are not prepared operationally for a major security event.
Mitchell Amador said that the first few hours after a vulnerability occurs are usually the most destructive. Without a pre-established incident response plan, teams hesitate, argue about the next steps, and underestimate the potential depth of the vulnerability's impact. This period is often a critical moment when additional losses occur.
Out of concern for reputational damage, project teams often hesitate to pause smart contracts and completely cut off communication with users. Maintaining silence often exacerbates panic rather than containing the problem. Nearly 80% of projects that have been hacked have never fully recovered, primarily because of the breakdown in operations and trust systems during the response process.
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