80% of hacked crypto projects fail to fully recover, says Immunefi CEO

Eighty percent of cryptocurrency projects that suffer a hack never fully recover to their previous state, Immunefi CEO Mitchell Amador said in an interview with Cointelegraph. He explained that most protocols are paralyzed by exploits due to a fundamental lack of operational readiness for security incidents. Amador noted that the initial response period is the most critical, but unprepared teams often cause further losses by hesitating on how to proceed. He added that some teams, fearing reputational damage, may delay halting smart contracts or refuse to communicate, which ultimately leads to a collapse in the protocol's operations and user trust. However, Amador believes this year will see security improvements due to the maturation of on-chain monitoring and risk-related infrastructure.