Cost of Crypto Hacks Seen as Implicit Transaction Tax

ARK Invest's head of digital asset research, Lorenzo Valente, stated that cryptocurrency hacks represent an implicit transaction tax and a cost of value storage, similar to product theft in the retail sector, with the associated losses ultimately borne by users. Each hack undermines the competitiveness of the crypto network. Data shows that since 2018, the average market value lost annually in the crypto industry due to hacks accounts for 0.24% of the total market value, while the loss of deposits in the U.S. banking system due to fraud is only 0.017%, a difference of about 14 times.

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