A new report by Immunefi has shed light on the long-term effects of crypto hacks on projects. The study found that not only do hacks result in significant financial losses, but they also lead to a decline in token prices and a loss of credibility.
The report analyzed data from 82 hacked tokens and found that the median six-month decline was 61%, with 56.5% of hacked tokens down more than half and 14.5% down more than 90%. Only about 16% traded above their hack-day price six months later.
Immunefi's study suggests that the aftermath of a hack can be just as damaging as the initial loss. The report notes that projects often lose security leadership within weeks and spend at least three months in recovery mode, making it difficult for them to recover from the damage.