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Crypto Projects Face Existential Threat After Hacks, With 80% Failing to Recover

Crypto Projects Face Existential Threat After Hacks, With 80% Failing to Recover

Author:

Global Cryptocurrency

Published:

2026-01-18 14:08:02

8

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BTCCSquare news:

The crypto industry's hack epidemic carries consequences far beyond stolen funds. New data reveals 80% of breached projects never fully recover—even after technical fixes—due to irreversible reputational damage.

Security breaches trigger paralysis: teams without crisis protocols waste critical hours debating responses while panic spreads. Projects that freeze withdrawals or remain silent often accelerate their own demise by eroding trust.

Specialists note that liquidity flight and community abandonment frequently persist post-remediation. The market now treats hacked protocols like contaminated assets—investors flee to safer alternatives despite technical recoveries.

By:

Tencent Advocates Specialized AI Training for Vulnerable Groups

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