Largely due to Ethereum, ICO has become an integral part of the world of cryptocurrency.
Since such projects are often combined innovative ideas with blockchain technology, they managed to attract a large amount of capital through the holding of ICO.
The popularity of the cryptocurrency and ICO proves that this innovative way of financing is really in demand around the world. Many projects have managed to attract considerable funds, often we are talking about hundreds of millions of dollars during the ICO. But where there is money, there is interest on the part of criminal organizations, and it confirms a recent report by Ernst and Young.
$ 400 million over two years
According to Fortune, up to 10 percent of all the money, raised with the ICO between 2015 and 2017, were either lost somehow or stolen by hackers. 10%, in this case, is $ 400 million.
In an effort to attract investors, the company that runs the blockchain projects often overlook the necessary precautions and protect themselves, investors, and projects.
In the report Ernst and Youngs stated that during this period, 372 ICO projects managed to collect 3.7 billion U.S. dollars. This is a huge amount of money for startup companies, and it is not surprising that hackers consider them easy prey.
The report States that a major ICO are considered easy targets for experienced hackers:
Hackers are attracted to the rush, the lack of centralized control, the irreversibility of the transaction network blockchain, and information chaos. The founders of the projects are focused on attracting investors and security is often not a priority. Hackers have successfully used this – what is promising and razduta the project, the more it becomes attractive to hackers.
In order to understand how frequent hacker attacks on ICO projects you don’t even have to search the Internet for information about this. News about it even on our website.
In many respects, the growing number of hacker attacks obliged the popularity of the Ethereum blockchain, which makes it relatively easy to run and to ICO.
All this has serious implications for Ethereum: popular ICO projects – is a serious burden on the network, a hacker attack on popular projects to increase this load, as investors start to panic and try to save their money.