Nearly four out of five cryptocurrency projects that suffer major hacks never fully regain their footing, according to Mitchell Amador, CEO of Web3 security platform Immunefi.
Amador told Cointelegraph that most protocols enter a state of paralysis the moment an exploit is discovered.
"Most protocols are fundamentally unaware of the extent to which they are exposed to hacks, and are not operationally prepared for a major security incident," he said.
The Critical First Hours After a Breach
The first hours after a breach are often the most damaging, according to Amador's analysis shared Saturday.
Without a predefined incident plan, teams hesitate, debate next steps, and underestimate how deep the compromise may go.
"Decision-making slows as teams scramble to understand what happened, leading to improvization and delayed action," Amador said, adding that additional losses frequently occur during this period.
Projects often avoid pausing smart contracts out of fear of reputational damage, while communication with users breaks down entirely.
Silence during security incidents tends to intensify fears among users and stakeholders rather than containing the situation.
The Long-Term Impact of Security Incidents
The finding reveals that less than a fifth of affected projects fully recover, primarily due to operational disruptions and eroded trust rather than initial financial losses.
Previous Immunefi research from 2024 showed that 77.8% of hacked tokens continued suffering negative price impact six months after exploits.
Major incidents including the $1.5 billion Bybit hack in early 2025 - the largest single crypto theft in history - demonstrate the scale of ongoing security challenges.
Optimism and Unresolved Challenges
Despite grim statistics, Amador expressed optimism about improving security practices driven by better development protocols, stronger audits, and more mature monitoring tools.
"I think 2026 will be the strongest year yet for smart contract security," he said, citing growing adoption of onchain monitoring and threat intelligence.
However, response readiness remains the critical unresolved problem, with teams needing to act decisively and communicate immediately when incidents occur.