A recent report by Immunefi reveals that crypto hacks have a lasting impact on token prices, with effects persisting for at least six months after an incident. The “Hacks & Token Prices Report 2024” highlights how the financial damage extends beyond the initial value stolen, deeply affecting market confidence and the overall value of affected tokens.
The Lingering Impact of Hacks on Token Prices
Immunefi’s analysis of 176 hacks between 2021 and 2023 shows that token prices continue to suffer long after the initial attack. For instance, two days after a hack, the median token price drops by 10%, and after six months, the decline worsens to 53%. In some severe cases, like ORT, tokens saw a complete 100% loss over multiple timeframes, illustrating the devastating effects of such breaches on crypto projects.
Market Recovery Remains Elusive After Major Hacks
The report also indicates that recovery is rare. One month post-hack, only BNB tokens showed a significant rebound, while other tokens struggled to recover even after several months. Immunefi’s CEO, Mitchell Amador, emphasized that the true damage of a hack goes beyond the immediate financial loss, as it triggers a prolonged downward spiral in token value and market confidence.
