As a seasoned crypto investor, I’ve witnessed firsthand the rollercoaster ride that comes with investing in this space. The ongoing bull run in 2024, fueled by regulatory breakthroughs and significant events like Bitcoin Halving and the approval of crypto ETFs, has brought soaring prices. However, it hasn’t come without its challenges.
As an analyst, I’ve observed that the cryptocurrency market’s unrelenting bull run has been driven by pivotal regulatory advances and major milestones such as Bitcoin‘s halving and the approval of crypto-backed exchange-traded funds (ETFs) in the US and Hong Kong. However, it’s essential to acknowledge that this positive trend comes hand in hand with heightened risks. Instances of hacks and “rug pulls” have resulted in substantial losses within the industry.
May 2024 Sees 12% Decrease In Crypto Losses
Based on data from Immunefi’s security services report published in early 2024, there was a notable reduction of approximately 20% in crypto market losses due to hacks and rug pulls compared to the first half of the previous year. Specifically, the total loss amounted to $473 million in contrast to $595 million during the corresponding timeframe in 2023.
As a researcher analyzing financial data, I discovered that our organization incurred losses totaling $52 million in May 2024. This represents a 12% decrease from the $59 million we lost during the same month the previous year. Furthermore, I noticed a significant reduction of 28% in losses between April and May 2024.
As a researcher examining the financial incidents in May 2024, I found that two projects contributed significantly to the total losses. Gala Games, a crypto gaming platform, faced a setback of $21 million, while SonneFinance, a decentralized lending system, endured a loss of $20 million.
In May 2024, Decentralized Finance (DeFi) initiatives faced the brunt of cyberattacks, with a significant number of exploits reported, whereas Centralized Finance (CeFi) remained untouched by major assaults during the same timeframe.
Ethereum And Binance Smart Chain Targeted
As a researcher examining the data from the security services platform, I discovered that hacks were responsible for a significant portion of the losses in May 2024, amounting to approximately $50 million across 14 specific incidents. In comparison, fraud incidents resulted in relatively minor losses, totaling only $1.7 million or roughly 3.3% of the overall damages during that period.
As a crypto investor, I’d put it this way: In May 2024, Ethereum (ETH) and Binance Smart Chain (BNB) were the two most frequently attacked blockchains, accounting for a staggering 62% of the total losses across all targeted chains.
Significantly, Ethereum was affected by nine occurrences accounting for 43% of the overall damages, while BNB Chain underwent four incidents contributing to 19% of the total.
Each of the chains, including Base, Arbitrum (ARB), Solana (SOL), The Open Network (TON), Blast (BLSTR), Fantom (FTM), Optimism (OP), and Polygon (MATIC), experienced an individual incident resulting in a 4.8% impact on their respective systems.
As a researcher studying the cryptocurrency market in 2024, I’ve observed that we’re experiencing a robust bull run. However, this growth comes with its own set of challenges. Specifically, we’re dealing with a rise in financial losses from hacks and rug pulls. Although the overall loss amount has decreased compared to the previous year, it still represents a substantial concern.
As a researcher studying the trends in the crypto market, I can confidently assert that the prevalence of hacks over fraud indicates a pressing need for enhancing security measures and addressing vulnerabilities to safeguard investor funds. In the evolving landscape of this industry, it is essential that we prioritize robust security practices to preserve investor trust and foster the uninterrupted growth of crypto markets.
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2024-05-31 07:11