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The growing popularity of Defi space attracts a large number of people and seems an opportunity for hackers.
When we hear about the losses in the wider crypto market, it mostly depends upon two major factors. One of them is undoubtedly when the market witnesses a downturn and results in incurring heavy losses. And another one is when crypto firms face losses directly when hacks and attacks take place.
Recently, the crypto market has seen losses given the massive sell-off followed by Terra ecosystem. Cryptocurrencies including top digital assets like bitcoin (BTC) and Ethereum (ETH) are in beleaguered conditions. On top of that, reports show that the decentralized finance sector has incurred losses of a staggering $678 million, during the second quarter of this year.
As per Immunefi, blockchain security platform, bad actors either black hat hackers or fraudulent founders of fake crypto schemes were responsible for a heavy amount of crypto assets vanishing off from the space. It reported that in these attacks, crypto protocols have lost a total of $670,698,280 in the second quarter of 2022.
Additionally, the reports disclosed that during this quarter, the main reason behind the losses remain attacks on Defi protocols. In the previous quarter, the primary cause of crypto space facing losses was cross chain bridges.
Further it also mentioned the major crypto firms which faced the most money out of all the victim firms. This included Beanstalk that lost $182 million, Horizon Bridge with the loss of $100 million, $90 million disappeared from Mirron Protocol and Fei protocol ended up losing $80 million.
While preparing the reports, the firm went through almost every other instance that took place during this time. Reports have noted down almost every alleged hack or attack on different crypto projects. This included fake protocols and projects that at the end rug pulled and made investors losing millions of dollars. The report compared the data of Q2 2022 with Q2 of 2022, which shows that the figure of overall loss is 1.5 times more than previous year’s loss of $440,021,559.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
