Security Threats and Their Impact on the Web3 Industry

In recent years, the Web3 industry has witnessed rapid growth, attracting the attention of investors and users worldwide. Unfortunately, this growth has been accompanied by security threats that significantly impact the industry. Hacks have become a common occurrence, leaving users and the crypto community in a state of concern. These incidents have not only financial consequences but also erode trust among participants. This raises questions about how to balance industry growth with security. According to third-party sources, in 2022, there were 306 security incidents in Web3, resulting in a cumulative loss of over $10 billion USD. This number increased by 26% compared to 2021, highlighting the growing concern.

A crucial aspect of responding to security threats in the Web3 industry is how exchanges and companies react to incidents. Some of them hide hack incidents or delay compensations, seriously undermining community trust. Meanwhile, others take immediate actions to maximize user protection and ensure transparent communication. This underscores the importance of responsiveness and openness in responding to security incidents.

Let's examine the case of the cryptocurrency exchange CoinEx, which experienced a hack in September 2023. Instead of shutting down its operations, the exchange took decisive steps to ensure user security. They suspended fund withdrawals and moved assets to cold storage, collaborated with other exchanges to freeze assets associated with the hack, and provided detailed statements on the hack's causes and incident details. This case emphasizes the importance of collective responsibility and user security.

Because the Web3 industry operates with much lower levels of control and regulation compared to the traditional financial sector, maintaining security standards requires collective efforts. Exchanges striving for sustainable growth face numerous challenges amid the current bear market and the increasing number of hacking attacks. For the ecosystem's continued positive development, it is necessary to balance security with opportunities for the crypto industry.