Cryptocurrency Tokens Struggle to Recover After Hacks, Report Finds

Cryptocurrency Tokens Struggle to Recover After Hacks, Report Finds

80% of hacked crypto projects struggle to recover price in six months A recent report by web3 bug bounty platform and security firm Immunefi has revealed that a significant majority of hacked cryptocurrencies struggle to recover their value in the aftermath of an attack. The report found that "more than 77.8% of hacked cryptocurrencies struggled to recover their price within six months, with 51.1% of hacked tokens dropping by more than 50% over the six-month period." Immunefi CEO Mitchell Amador commented on the findings, saying, "When you get hacked, it takes months for teams to rebuild." The report suggests that the negative impact of a hack on a cryptocurrency's price can be long-lasting, with many projects struggling to regain the trust of investors. The report also found that the size of the hack has a significant impact on the ability of a cryptocurrency to recover. Projects that were hacked for less than $1 million were more likely to recover their price than those that were hacked for more than $1 million. These findings highlight the importance of strong security measures for cryptocurrency projects. By implementing robust security measures, projects can reduce the risk of being hacked and protect the value of their tokens.