Crypto - UPtober or HACKtober 🤔
Hi Traders, Investors and Speculators
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫
October is notorious for upward price action on Bitcoin, earning the title UPtober about two years ago. However, a new trend has begun - HACKtober.
During this year, we see an increase number of hacking across the months but October has been the month with the most hacks and the most liquidity stolen. After 4 hacks within the last 48 hours, October is now the month with the biggest hacking statistically, and there is another 15 days to go. According to Chainanalysis, $718 million is accounted for to be stolen from DeFi protocols across 11 different hacks. At this rate, 2022 will surpass 2021 as the biggest year for hacking on record. So far this year, over $3 Billion accounted for has been hacked across 125 hacks. During 2019, most hackers targeted exchanges. Now, the biggest targets are DeFi protocols. Cross-chain bridges remain a major target, with 3 breached tis month accounting for 82% of all losses this month and 64% of all losses this year.
Let's discuss a few ways to minimize your risk when investing in this wild west market:
🖐- Research the team. Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum ETHUSDT founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects.
🖐- Check the whitepaper. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.
🖐- It it sounds too good to be true, it probably is. The idea of getting rich quick on an investment in a hot new project sure is tempting. Keep an eye out as you look for new investment opportunities in the ICO and cryptocurrency spaces. Remember that projects sounding too good to be true , likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment. Ask questions that you can't already find the answers to.
💭Whilst I remain bullish on Crypto, the above does reveal a worrisome trend for decentralized finance. Like this, DeFi still has a long way to go in terms of security. Hopefully the SEC case against Ripple will provide more clarity in terms of regulations and responsibility going ahead.
_______________________
📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍
We thank you for your support !
CryptoCheck
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫
October is notorious for upward price action on Bitcoin, earning the title UPtober about two years ago. However, a new trend has begun - HACKtober.
During this year, we see an increase number of hacking across the months but October has been the month with the most hacks and the most liquidity stolen. After 4 hacks within the last 48 hours, October is now the month with the biggest hacking statistically, and there is another 15 days to go. According to Chainanalysis, $718 million is accounted for to be stolen from DeFi protocols across 11 different hacks. At this rate, 2022 will surpass 2021 as the biggest year for hacking on record. So far this year, over $3 Billion accounted for has been hacked across 125 hacks. During 2019, most hackers targeted exchanges. Now, the biggest targets are DeFi protocols. Cross-chain bridges remain a major target, with 3 breached tis month accounting for 82% of all losses this month and 64% of all losses this year.
Let's discuss a few ways to minimize your risk when investing in this wild west market:
🖐- Research the team. Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum ETHUSDT founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects.
🖐- Check the whitepaper. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.
🖐- It it sounds too good to be true, it probably is. The idea of getting rich quick on an investment in a hot new project sure is tempting. Keep an eye out as you look for new investment opportunities in the ICO and cryptocurrency spaces. Remember that projects sounding too good to be true , likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment. Ask questions that you can't already find the answers to.
💭Whilst I remain bullish on Crypto, the above does reveal a worrisome trend for decentralized finance. Like this, DeFi still has a long way to go in terms of security. Hopefully the SEC case against Ripple will provide more clarity in terms of regulations and responsibility going ahead.
_______________________
📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍
We thank you for your support !
CryptoCheck
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