Cypto hacks and shady projects are unfortunately a common occurrence in our space but they don’t have to be.
Let us see the 5 biggest crypto hacks we can learn from and factors to consider before investing in a crypto project to keep ourselves #SAFU. 👇
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Let us see the 5 biggest crypto hacks we can learn from and factors to consider before investing in a crypto project to keep ourselves #SAFU. 👇
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RONIN NETWORK - $620 millions
-> Composed of 173,600 ETH (roughly $595 million) worth of digital currency and USD tokens worth an additional 25.5 million dollars, the hacker accessed the wallet using private keys.
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-> Composed of 173,600 ETH (roughly $595 million) worth of digital currency and USD tokens worth an additional 25.5 million dollars, the hacker accessed the wallet using private keys.
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→ As one of the most popular play-to-earn games out there, Axie Infinity takes great pride in its security protocols — but this unfortunate incident serves as a reminder that we must do more to protect from malicious attacks.
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COINHECK - $534 millions
→ In January 2018, the Japanese crypto exchange Coincheck sent shockwaves through the cryptocurrency industry following news of a major hack where thieves stole over 500 million NEM tokens (XEM), valued at approximately $534 million dollars.
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→ In January 2018, the Japanese crypto exchange Coincheck sent shockwaves through the cryptocurrency industry following news of a major hack where thieves stole over 500 million NEM tokens (XEM), valued at approximately $534 million dollars.
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Upbit Wormhole Hack - $320 millions
→ In February 2022, a massive hack occurred on the South Korean cryptocurrency exchange Upbit, resulting in an estimated $320 million stolen from user accounts.
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→ In February 2022, a massive hack occurred on the South Korean cryptocurrency exchange Upbit, resulting in an estimated $320 million stolen from user accounts.
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→ The hack was one of the largest crypto heists and has left many exchanges on high alert, increasing their security measures to prevent similar attacks from happening.
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Beanstalk - $80 millions
→ On April 2022, Beanstalk’s [DeFi](cryptopolitan.com)-based project was the victim of a flash loan attack where a hacker leveraged the platform’s majority vote governance system to exploit to their advantage.
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→ On April 2022, Beanstalk’s [DeFi](cryptopolitan.com)-based project was the victim of a flash loan attack where a hacker leveraged the platform’s majority vote governance system to exploit to their advantage.
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→ Subsequently, the hacker fled with an astounding $80 million while losses on the platform totaled over $182 million.
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SAVE YOURSELF
Let us see what research can we do to avoid getting involved with such projects and saving ourselves.
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Let us see what research can we do to avoid getting involved with such projects and saving ourselves.
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1. Security
Exchanges must have a high level of security against cyberattacks and other malicious activities. They should also comply with relevant industry regulations, such as the EU’s GDPR, to protect customer data.
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Exchanges must have a high level of security against cyberattacks and other malicious activities. They should also comply with relevant industry regulations, such as the EU’s GDPR, to protect customer data.
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2. Transparency:
The exchange must be transparent about its operations and provide adequate documentation for trading activities. This includes providing details on fees, token listings, and liquidity information.
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The exchange must be transparent about its operations and provide adequate documentation for trading activities. This includes providing details on fees, token listings, and liquidity information.
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3. Liquidity:
Investors should check an exchange’s liquidity before investing in crypto projects, as this will help ensure that they can convert their assets into cash quickly if needed.
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Investors should check an exchange’s liquidity before investing in crypto projects, as this will help ensure that they can convert their assets into cash quickly if needed.
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Technology:
Exchanges should be up-to-date with the latest technologies, such as encryption, and AI, to ensure their network is secure from external threats.
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Exchanges should be up-to-date with the latest technologies, such as encryption, and AI, to ensure their network is secure from external threats.
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Reputation:
Crypto exchanges should have an excellent reputation within the community for providing trustworthy services. This includes having a good customer service record and responding to any issues or inquiries users may have.
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Crypto exchanges should have an excellent reputation within the community for providing trustworthy services. This includes having a good customer service record and responding to any issues or inquiries users may have.
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