Rich by Coin

Nearly four out of five crypto projects that suffer a major hack never fully regain their footing, according to Mitchell Amador, CEO of Immunefi. The executive notes that the immediate aftermath is defined by operational paralysis rather than the initial losses, and that most protocols remain unaware of the full extent of their exposure or their lack of preparedness for a major incident. The first hours after a breach are often the most damaging, as teams without a predefined incident plan hesitate, debate next steps, and underestimate how deep the compromise may go. This paralysis is frequently followed by further losses as operational trust erodes and communications with users break down.

Trust has become the most fragile asset in crypto, and even technically resolved incidents can mark the beginning of the end, according to security expert Katz. While there are exceptions, many major exploits lead to user exits, liquidity drains, and lasting reputational damage. Experts also note that human error—such as users approving malicious transactions or exposing their keys—has become a dominant source of losses, underscoring the need for stronger user education and safer interfaces. Recent high-profile social engineering attacks, including a notable incident involving billions in losses, illustrate how attackers continue to exploit social channels rather than just code flaws.

Despite grim statistics, optimism persists about security improvements. Amador argues that smart contract security is improving faster than ever due to better development practices, more thorough audits, and mature tooling, with on-chain monitoring and threat intelligence playing a growing role. He cautions, however, that the main challenge remains response readiness: teams must act decisively and communicate quickly when incidents occur, even if the full scope is unclear, since pausing protocols early can mitigate damage more effectively than allowing uncertainty to spread. If 2026 proves to be the strongest year yet for smart contract security, it will be because the ecosystem has learned to respond faster and more transparently to breaches, reducing the long tail of losses and reputational harm.