ARK Invest's Lorenzo Valente: Crypto Hacks Cost Industry $26.9 Billion Since 2017

What happened

ARK Invest crypto research head Lorenzo Valente said the crypto industry has lost about $26.9 billion to hacks since 2017. He said on-chain revenue over that period was about $47 billion and described the losses as roughly $0.57 for every $1 in revenue.

Confirmed

Global impact / market context

Hacks can directly reduce the value users and businesses retain from crypto activity, while also raising security costs and discouraging customers. If security remains a major constraint, exchanges and other on-chain services may need to spend more on protection, potentially limiting growth and profit per sale.

Analyst inference

Valente’s comparison frames security losses against revenue generated on-chain, rather than measuring losses alone. The figures suggest a substantial drag relative to that revenue, but the article gives no breakdown by year, business, or type of hack, so exposure across the industry is unclear.

Analyst inference

What to watch

1. Further figures on hack losses and on-chain revenue could show whether security losses are growing faster or slower than the activity they undermine. Analyst inference
2. Evidence that crypto businesses are increasing security spending would help indicate whether protection costs are rising and could pressure their profits. Analyst inference
3. Changes in reported hack losses could affect how customers and investors judge the safety of on-chain services and their willingness to use them. Analyst inference

Evidence

• binance.com