You have to wonder if investing in cryptocurrencies is worth it.
This feels like one of the more obvious conclusions after the latest high profile hack, this time at Crypto.com, which just admitted that it lost the equivalent of $30 million in digital currency.
Until recently, it seemed like it had a fighting chance of competing with fiat currency. It feels like a dream with new hacks dropping like flies and investors getting ripped off for doing little more than being in the wrong place.
The total amount of money stolen by hackers was a record-breaking 14 billion dollars last year. The rise of Defi platforms, which grew an exponential 912 percent in 2021, is a significant factor driving all that grift.
One of the most talked about platforms of the year is the Defi platform, and it paid Matt Damon to film an ad for it.
The developers of these platforms have left their code open to hackers in order to replicate traditional banking as a means of legitimizing. Users who are more interested in the hype and promise of huge gains don't seem to care, according to Chainalysis. A spokesman for the firm told CNBC that 21 percent of last year's hacks exploited these back doors.
The goal of DeFi is to replicate securities exchanges, except that sloppy security on platforms that embrace it have enabled hack after hack that drain investors' money straight from the source.
The biggest hack in recent months won't convince people to stop using these platforms. At some point, these platforms are going to have to get their act together or risk being turned against them.
Over $30 million was stolen by hackers.
Hacker Steals $600 million in cryptocurrencies, gets scared and returns it.
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