I recently heard a news that one of the Etherium layer 2 protocol Starknet has been hacked and over $9.5 million stolen in a single operation, That's crazy. The rate at which defi protocols are been hacked these days are on a high side. The recent attack was said to have associated with some vulnerability in the protocols contract code, there by leading to such a massive lost within minutes. This as left me wondering how the protocol investors will really feel at the moments with such a shocking news.
Personally, I feel that most defi hack attacks are planned by the protocol developers/ owners in an attempt steal investors funds. Am not a blockchain developer anyway, but I think it's not that easy to hack decentralized protocols without an internal attack initiated by one who has an authorize access to the security system, thereby causing a security breach that leads to easy access by the attackers. What a shock this will leave investors with.
Thus It's important to not put all your eggs in one basket , diversification is very important when it coms to financial investment, especial on crypto space. I still remember in 2011, I invested almost $500 with MtGox, and I woke up one morning to realized that MtGox has been hacked, with over 70,000 BTC lost from the exchange. It was striking and painful to lose $500 as at 2011, that could have been good amount of money today. It wasn't much, but it was very painful. So, I think the only way to avoid experiencing such event with your investments is to invest in trusted exchanges and diversify your investment. The most import think is to invest the money you can avoid to lose.
Conclusion:
Too many defi protocols/ DEX {including with centralized exchanges} as been hacked, and those are not the last, I think many more will. Am not happy to see that, either am I trying to prophecy, but the truth is, many of so called exchanges are fraudulent, targeting to earn your trust for a while by providing you with good services while accumulating lots of millions of dollars in their TVL, and after which they gain satisfaction, they initial self-attack, claiming it was from an external environments.
Like I stated above, It's important to invest what you can only afford to lose and never put all your eggs in one basked. Thanks for stopping by.
