Shocking: Coin Value Drops 50% to 100% Even Six Months After a Hack
Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...
The market impact of a hack on a coin’s value continues and increases over time, lasting for at least six months after the incident, according to the ‘Hacks & Token Prices Report 2024’ by the major bug bounty and security services platform Immunefi.
Along with the report, the team is launching a dedicated platform that provides ongoing data on the actual financial impact of crypto hacks.
The report stressed that the ‘net value stolen’ is the most widely used figure but that it “grossly underestimates the damage” hacks cause.
Though a standard, this figure fails to consider “other ways hacks wreak damage.”
Many of these so-called “contributors to total hack damage” are difficult to quantify but are more financially damaging than the hack itself, the researchers remarked.
The most unrecognized contributors include market impact, dependency impacts, and talent and organizational impact.
The Immunefi team focused on the market impact—the damage suffered by token prices due to a hack, which can last for long periods of time.
It observed 176 hacks occurring between 2021 and 2023. More specifically, it looked at the performance of the hacked protocols’ native tokens within five different timelines: the day of the hack, two days, five days, three months, and six months after the event.
What the researchers found is that, two days after the hack, the median native token price saw a 10% drop.
More precisely, 34% of the affected tokens fell 10%, 11.4% fell over 50%, and 5.1% fell over 90%.
In the five-day period post-hack, the median token
Read more on cryptonews.com
