TL; DR Breakdown
- Analysts predict an increase in DeFi hacks next year
- Analysts believe the sector will experience more attacks
- Regulators want a unified regulatory framework
The decentralized finance sector has witnessed burgeoning growth in the past few years. Coupled with the growth, the sector has naturally attracted malicious actors to carry out their activities in the sector. This one act has led to more DeFi hacks this year than in previous years. Although regulation and partnerships are in the works to stop these activities, analysts have predicted it will get bigger in 2022.
Analysts believe the sector will experience more attacks
The decentralized finance market was taken aback after AscendEx announced yesterday that its database had been breached in a DeFi hack. During the investigations, the exchange discovered that the hackers made away with more than $70 million after compromising its hot wallets across three blockchains. While that was on the lips of market participants, Volcan Forged announced that hackers gained illegal entry into the gaming ecosystem. In its review of the DeFi hack, the platform said the hackers compromised 96 private keys and stole assets worth $140 million in the process.
However, the platform immediately sent out word to the affected wallets, promising to send them guidelines on how they will be able to get their assets replaced if they were affected by the breach. Although Vulcan Forged has achieved little success with returning part of the funds, there have been questions about where the location of the remaining funds.
Regulators want a unified regulatory framework
Giving insight into the activities of the DeFi market, market analyst and trader Benjamin Whitney recently mentioned that the growth of the DeFi sector is calling on these actors. In his opinion, the Qredo boss believes that the market will witness firsthand a DeFi hack that will be worth billions. In a piece by IOHK, the platform has urged investors to carry out due diligence into platforms before they agree to carry out trades on them.
In its statement, the platform says traders who intend to eliminate being opened to a high risk of DeFi hack should carry out deep research and not just some opinion that people have. However, one of the most noteworthy reasons the sector has remained this way is a lack of regulation that has continued to plague it. Most analysts believe that they can beat the DeFi hack if a joint regulation can be agreed upon by countries worldwide.
