DeFi Hacks Continue: Does Hope Hold Enough for Investors Not to Give Up

Decentralized finance (DeFi) has been one of the fastest-growing crypto sectors in the past year. There was only $800 million in value locked in DeFi three years ago. The number was $40 billion in February 2021, $80 billion in April 2021, and now it is over $210 billion. Being very young and quite successful, the sector has become a target due to constant development that can bring about several vulnerabilities. According to a crypto research company report, the DeFi sector lost almost $300 million to various attacks and exploitations in 2019. Due to the anonymity of these systems, they can be easily hacked and exploited. All this, without the knowledge of their users. In the first four months of 2021, the total losses reached $240 million. DeFi Crime is on the Rise While hacking is more common among cybercriminals, social media influencers have been getting involved with rug pull scams and manipulating their audiences. Marketing plays a vital role in rug pull scams because it draws in many investors and drives the price up. Social media and influencers are often how developers of such projects advertise their tokens to an unsuspecting audience. A lot of DeFi protocol hacks are performed due to coding mistakes. Unfortunately, many blockchain project owners don’t perform security audits or even conduct smart contract security checks. Another form is the smart contract logic which is a step beyond the standard code vulnerability...