80% of projects are paralyzed after hacking attacks: fund loss is actually a secondary issue

The cryptocurrency industry in 2025 experienced an extremely challenging year in security. According to the latest data, last year’s hacker attacks resulted in losses of $3.4 billion, reaching a new high since 2022. But what’s more concerning is that nearly 80% of projects that suffered major hacks have never truly recovered. Immunefi CEO Mitchell Amador pointed out that the root cause of this phenomenon is not initial capital loss, but operational paralysis and trust system collapse during the response process.

Behind the 80% failure rate

The problem isn’t funds, it’s response

The first few hours after a project encounters a hacker attack are often the most critical. However, most protocols fall into a decision-making dilemma at this moment. According to Immunefi’s observations, many projects are unaware of the severity of the risks they face and have no contingency plans for major security incidents. When vulnerabilities are exploited, teams typically:

• Hesitate, unsure of what actions to take
• Argue internally over response strategies, wasting valuable time
• Underestimate the impact of the vulnerability
• Miss the critical emergency window

This period is often the tipping point for additional losses. Without a pre-established incident response plan, teams tend to fall into chaos at the moment when quick decisions are most needed.

Reputation panic and communication breakdown

Even more ironic is that, in an effort to protect their reputation, project teams often choose the worst approach:

Fearing damage to their reputation, they dare not pause smart contracts. They worry that any aggressive measures might exacerbate market panic. Meanwhile, communication with users is completely cut off, opting for silence. But in reality, silence often worsens panic rather than containing the problem. Users’ uncertainty and information vacuum can lead to even more severe trust collapse.

This passive response directly results in operational system paralysis and total loss of user trust. Even if funds are eventually recovered or compensated, the project’s ecosystem is already shattered.

Harsh realities of 2025

These figures reflect a harsh reality: the threat of hacker attacks has become a norm in the industry, and the scale of losses continues to grow. More critically, the long-term negative impact on token prices indicates that user confidence in attacked projects has fundamentally changed.

Deep industry insights

This crisis exposes systemic flaws in Web3 projects’ security governance:

Lack of security awareness. Most protocols have insufficient understanding of their own risks, and lack thorough stress testing and emergency drills.

Absence of emergency response systems. Predefined incident response plans, communication protocols, and decision-making processes are severely lacking.

Mismanagement of trust. Project teams’ efforts to protect reputation often backfire; silence and passive responses tend to trigger panic more easily.

This also explains why platforms like Immunefi, a Web3 security platform, are becoming increasingly important. According to the latest news, Immunefi will conduct its TGE on January 22, further promoting the improvement of industry security infrastructure.

Summary

80% of the damage caused by hacker attacks to projects stems from response failures rather than the loss of funds itself. This means that solving security issues requires not only technical safeguards but also a comprehensive system of operational management, crisis communication, and trust rebuilding. For any Web3 project, establishing emergency plans, creating rapid decision-making mechanisms, and preparing transparent communication strategies are perhaps more important than any technical defense. The $3.4 billion loss in 2025 is a warning; whether this crisis can be resolved depends on how projects respond, not just on whether funds can be recovered.