This leads to a significant drop in asset value and raises concerns in the market.
Approximately 80% of digital assets stolen during hacking attacks no longer attract investor attention, reflecting their growing caution and distrust of compromised projects.
Tokens from such projects lose more than 50% of their value within six months after a breach, making their recovery and further development more challenging.
Projects in the centralized finance (CeFi) sector are most frequently targeted. In 2024, out of the total $1.19 billion stolen, around $637 million was taken from CeFi infrastructure, highlighting the sector’s particular vulnerability.
Investors are losing confidence in projects that have been hacked, fearing further breaches and financial losses. This creates a trend of rapid asset sell-offs, further exacerbating their decline in value.
Many token holders affected by hacks try to offload them as quickly as possible to minimize their losses. As a result, these projects face difficulties in attracting new capital and restoring their reputation in the market.