4 Important Lessons Learned from Recent Crypto Events — Jan_2022
If you have been involved in the investing community the last several years — and particularly the last couple of years — you are well aware that cryptocurrencies have been making significant noise. In fact, it’s almost impossible to ignore the disruption and impact that crypto has had on the world’s investing economy. Like any new trend, some early adopters take the risks to (hopefully) reap the high rewards, and then there are the people who sit on the sidelines until the temperature of the pool has been established before they’re willing to dive in. I am the former.
Best way to gain impactful knowledge is to analyze real life case studies, all of which can lead to important crypto lessons and fuel more motivation for the industry. _Nag
The crypto world began with Bitcoin, which most people have heard about by this time (though some may still not fully understand it), but it has since expanded to thousands of different cryptocurrencies. As an early adopter of crypto, I have made it my mission to learn as much as possible about these intangible assets. I have discovered that the best way to gain impactful knowledge is to analyze real life case studies, all of which can lead to important crypto lessons and fuel more motivation for the industry.
6 Recent Crypto Security Events
Back in January, there were six different crypto events that I studied to gain as much knowledge about the changing and innovating nature of the industry. Analyzing each of these events yielded tremendous value and important crypto lessons that I am eager to share with others who are interested in cryptocurrencies and security.
Crypto IR Event #1: citydao.io
The CityDAO event took place on January 9, 2022. CityDAO uses blockchain in an effort toward decentralized land ownership. Unfortunately, a hacker was able to infiltrate the chain and steal nearly $100,000 in crypto.
Crypto IR Event #2: Related to Binance
The Binance event took place on January 10, 2022. Binance is a cryptocurrency exchange that was enveloped in controversy late last year when thousands of investors were swindled out of $100 million.
Crypto IR Event #3: Crypto.com
The Crypto.com event took place on January 16, 2022. Crypto.com is rapidly becoming one of the most prominent crypto exchange apps in the world, even securing the naming rights to the Los Angeles Lakers stadium late last year, now called Crypto.com Arena. In a recent hack of the exchange, attackers got away with more than $34 million.
Crypto IR Event #4: Multichain.org
The Multichain.org event took place on January 17, 2022. MultiChain, which helps organizations with blockchain development and launch, experienced vulnerability issues that led to $3 million in losses.
Crypto IR Event #5: opensea.io
The opensea.io event took place on January 24, 2022. OpenSea, which is the world’s largest Ethereum NFT marketplace, also experienced security vulnerabilities that let exploiters nab 347 Ethereum coins.
Crypto IR Event #6: twitter.com
The Twitter event took place on January 25, 2022. While Twitter was not hacked for millions of dollars like some of the crypto exchanges I previously mentioned, it has been called out for some other vulnerabilities in recent months. One primary vulnerability relates to its new NFT feature. Some crypto experts quickly discovered that Twitter’s system allows copies of NFTs to be successfully passed off as originals.
4 Key Lessons Learned from These Crypto Security Events
As you can see, these six crypto events all have one thing in common: security issues can be exceptionally detrimental to exchanges and other websites handling crypto and NFTs. In particular, these vulnerabilities can cost millions of dollars and put reputations at risk. Overall, there were four important crypto lessons that I learned from these six events.
Lesson 1: Multi-Factor Authentication is Vital to Security
At least two of the hacks from these crypto events were a direct result of companies not having proper multi-factor authentication in place. This is a simple and, quite frankly, expected security measure in today’s online environment that could have saved exchanges from allowing hackers from getting away with stealing millions of dollars. This is also a lesson that is universal, not only for crypto exchanges but also for simple applications such as email or standard online banking. MFA will allow you to easily protect your assets and investments.
Lesson 2: Bug Bounty Programs Can Be Very Beneficial to Network Security
Especially when dealing with NFTs, having a quality bug bounty program in place can drastically improve your network security. For those who are unaware, bug bounty programs are typically offered by websites or developers. These programs offer some sort of incentive for reporting bugs, most notably those that expose vulnerabilities in the network, and typical rewards come in the form of compensation or recognition of some kind. Immunefi is an industry leader when it comes to operating successful bug bounty programs.
Lesson 3: Social Engineering Attacks Should Not Be Underestimated
With some information security attacks, a single hacker attempts to be sly — breaking in, stealing what they can, and then disappearing. Those types of attacks can certainly be detrimental to a company. However, perhaps even more disastrous to an organization is a social engineering attack. This type of attack involves the manipulation of people into performing a certain task or modifying their behavior to achieve a certain goal on the hacker’s behalf.
Lesson 4: Be Alert for Bad Actors Infiltrating Crypto Space
Crypto spaces should be filled with people who are from crypto. If you begin to notice that the network or exchange that you are part of is becoming overrun with people from outside the actual crypto security space, you should be on high alert that there may be some form of security issue at play — whether that simply means network vulnerability or a social engineering attack.
Whether you have been tuned in to crypto for years or whether you are relatively new to the field, I hope these important crypto lessons will help you reach and even exceed all of your goals. As is the case with all burgeoning industries, we must continue to strive to absorb as much information as possible so that we can remain ahead of the ever-changing game.
If you or someone you know is interested in contributing to this analysis, feel free to send out a PR @ crypto-leaks
As these types of crypto events occur throughout the year, I will be following them and providing monthly insights that will help others become better educated. If you or someone you know is interested in contributing to this analysis, please contact me. A complete list of crypto events can be found here.
