Opinion: Nearly 80% of crypto projects that have been hacked have failed to fully recover, with operational issues and loss of trust being the main reasons.

BlockBeats News, January 18 — According to Cointelegraph, Mitchell Amador, CEO of Web3 security platform Immunefi, stated that nearly 80% of crypto projects that experience major hacking incidents have never fully recovered. Most protocols are unaware of the extent of the hacking risks they face and are unprepared operationally for major security incidents.

Mitchell Amador said that the first few hours after a vulnerability occurs are usually the most destructive. Without a pre-established incident response plan, teams tend to hesitate, argue over the next steps, and underestimate the potential impact of the vulnerability. This period is often a critical moment for additional losses.

Worried about reputation damage, project teams often dare not pause smart contracts, and communication with users is completely cut off. Staying silent often exacerbates panic rather than containing the problem. Nearly 80% of projects that have been hacked have never fully recovered, mainly because the failure is not due to initial financial loss but to operational and trust system breakdowns during the response process.