80% of hacked crypto projects never ‘fully recover,’ expert warns

Impact of Hacking on Market Trust

In recent years, the cryptocurrency market has faced frequent security issues due to hacking, which has severely impacted many projects. According to experts, about 80% of hacked crypto projects fail to fully recover even after fixing their technical flaws. Security failures not only lead to fund drainage but also cause a catastrophic loss of trust among users and investors.

Difficulty in Regaining Trust

Typically, even secured projects struggle to regain user confidence once hacked, fostering anxiety among stakeholders. This results in decreased capital inflows and reduced project value. In a highly competitive landscape, attracting new investment post-hack becomes a daunting task. Many projects seek further funding to overcome this predicament, but regaining lost trust proves to be extremely challenging. This situation compels investors to adopt a cautious stance towards hacked projects, highlighting rising uncertainties in the market. The need for robust security measures and transparency is becoming increasingly paramount.