A Liechtenstein-based Bank Frick report reveals that crypto theft is declining since 2011, while the crypto industry has constantly been evolving.
It is a fast-paced industry with its market expanding over the years. Where exchanges play a pivotal role in the digital currency market, they assist people from all over the world in getting access to digital assets via computers or their smartphones.
However, the problem of hacking attacks from various parties is still prevalent and has made the investors from all around the globe lose a huge chunk of funds.
The decline in crypto thefts is associated with various reasons such as exchanges are now well-equipped and well experienced to tackle such attacks after having experienced some bad episodes of crypto attacks.
Crypto theft is declining in institutions
In addition, the declining rate of crypto theft could also be because of an increase in institutional-grade custodians, who are responsible for protecting the exchanges’ and investors’ funds.
As per the report, when the crypto market expands for a short span of time; crypto attacks tend to increase in number. It has to do with the entry of increased newcomers in the crypto space along with the funds placed by investors in the crypto markets.
Even though the hacks may have increased, but comparing it to the valuation growth and increase in users, the incidents have decreased. For instance, in 2011, almost 0.005 % of the entire Bitcoin supply got lost because of hack attacks. However, the number dropped to 0 in 2018.
From 2017 to 2018, the volume of incidents was stable, but from 2015 to 2016, a rise in the incidents was witnessed. However, 2014 was the worst year, with more than eight incidents that negatively impacted the crypto space. So, as exchanges grew in number, the incidents were divided by the growth in exchanges, hence; reaching its lowest point in 2015.