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- A new report has disclosed that over 75% of hacked crypto projects don’t recover
- The report by Immunefi noted that most tokens associated with these projects never command the same prices as before the hack
- Immunefi observed that some crypto projects are more resilient to the effects of a hack than others
Bug bounty platform Immunefi has disclosed that the token prices of crypto projects fail to recover after the projects are exploited. In its “Hacks & Token Prices Report 2024,” Immunefi noted that 77% of hacked crypto projects still suffer the effects of the hack, six months after the incident, with 50% of the projects experiencing an over 50% drop in token prices within the same timeframe. According to the report, a huge percentage of the price drop happens in the first five days when tokens shed close to 30% of their value, which occurs as investors rush to liquidate or withdraw their assets to prevent further losses.
A Hack Marks the Start of More Trouble
Immunefi CEO Mitchell Amador noted that a hack signifies the start of more problems. Amador observed that a crypto project loses more than what was siphoned in an exploit in the form of lost time, emotional toll on the team, market, and dependency impact.
Immunefi investigated 176 hacks that happened between 2021 and 2023 and noted that most damages, apart from the hacked funds, are “challenging to quantify […] due to post-hack response and recovery.”
Crypto projects whose token’s prices plummeted by over 90% after an exploit include Vee.Finance, Impermax Finance, Nirvana, and Spartan Protocol. Some of the projects end up shutting down after a hack.
$500 Million Lost in Q2 2024
Solareum, for example, announced in April that it was shutting down following a $523,000 exploit. The Immunefi report comes two months after Immunefi released a report revealing that hackers and scammers stole more than $500 million in Q2, 2024.
With crypto projects struggling to recover six months after being exploited, it’s evident that they suffer more than losing funds in an exploit.
