Crypto hackers keep exploring lapses in security set-ups to steal tokens due to the lucrative stature of cryptocurrency and other related virtual assets. The attacks are often damaging to investors, Exchange platforms, and other concerned stakeholders in the cryptocurrency realm.
Reports in the media keep reflecting a damaging degree of attacks on Cryptocurrency. Recently, the cryptocurrency sphere woke up to one of the most devastating news ever. Ronin Network revealed that hackers had stolen close to $625 million in crypto from its blockchain. Also, the play-to-earn Axie Infinity video game that operates on the blockchain suffered from the attack. Within that month, hackers stole close to $80 million in cryptocurrency by exploiting a bug on Qubit Finance.
Additionally, the hack amounts to over $14 billion stolen from crypto in 2021 according to a statistical firm, Chainalaysis. The NFTs industry wasn’t left out of the hackers spree as well. Not quite long, hackers snatched close to $5 million worth of NFTs from the popular Bored Ape collection. The list of hackers atrocities on crypto is very endless, and we can’t continue to Indicate. News reports can’t cover all the losses of investors to this fraudulent activity.
We can’t continue to shut our eyes and ears against these attacks. While little can be done to compensate affected investors, all hands must be on deck to tackle the issue. We all shouldn’t continue to fold our arms while hackers keep carting away fortunes, leaving the future of the industry in jeopardy.
The Effect of Hackers and their activities on Crypto
With a careful examination of the root causes of these attacks, we’ll realize that both investors and crypto firms are tolerant. Some of the cyber attacks often need the approval of coin holders, who unconsciously give out their details. Many holders have been victims today of their embracement of fraudulent promises like a giveaway or airdrops. While hackers have pounced on security mishaps on different exchange platforms.
From a logical perspective, no investors will feel secure investing in an entity that’s vulnerable to cyber attacks. The more the industry seems to be growing and gaining international recognition, the more attacks it endures. However, the security responsibility that lies sorely on investors must end, while every stakeholder takes responsibility.
Therefore, it should no longer be the responsibility of investors to secure their assets alone. We must all submit to the reality that safeguarding the industry is the responsibility of every stakeholder. If not properly arrested, the industry may likely lose notable investors who come under pressure from these attacks.
Furthermore, another prominent reason why stakeholders must pick the mantle of safeguarding crypto is because of regulation. Without a doubt, regulators mostly decry the vulnerability to crimes and illegal activities. To avoid this, regulators often set up stern regulations to combat these irregularities. Unfortunately, while it effectively stops them, innocent investors often pay the price as well.
How Exchange Platforms, Investors, and Stakeholders can work against future attacks
While it has dawned on us that protecting the industry isn’t what investors can do alone. Subsequently, there are numerous ways in which every concerned individual and organization can stop hackers in crypto.
Exchange platforms must embark on compulsory education on why holders mustn’t share their details on public platforms. Exchange platforms must do well to organize sensitizing programs for investors on how to best safeguard their assets.
Most fraudulent schemes that often lure investors into revealing their details usually manifest on social media like Twitter. Developers and teams must always engage investors at intervals with the emphasis that the team will never ask for their details.
Also, Social platforms must stop the registration of accounts with usernames that are similar to verified projects. Hackers often hide behind parody accounts to pose as Crypto project developers with the promise of giveaways. These platforms should also double their efforts of detecting accounts that engage in fraudulent activities.
Lastly, exchange platforms must improve their defense mechanism against any future attack. The avoidance of glitches and strong protection will repel any attack on it. Hiring more experts in the developer’s sphere will also deliver an experienced team that’s up to the task. Adopting these recommendations will go a long way to help combat attacks on the promising industry of crypto.