What could be the consequences of widespread hacks of exchanges, protocols, ...

[Fiatless]

What do you think?

There will always be hacks caused by systems or human errors. You are right; people will begin to choose currencies that can be easily traced and recovered in cases of hacks. They would also choose centralization if they are assured that they will get their money back if there is a hack or other cause of loss of funds.

They are using better technology now, but I think there will always be a counter to this. They may have the upper hand on those last hacks but the upgrade of security will be next to it.
The problem came when AI was introduced and widely used. Now, I bet the key to protection for that attack may also be there. Big names were hacked, and they should actually be the embodiment of a higher level of security. I bet they are also surprised by what happened, but after that attack, I highly doubt it will be repeated in a year or two.

Do you mean that scammers or hackers are using better technology? I don't think so because big corporations have the financial power to invest in the best security systems. Scammers just use tricks to gain access to systems.

AI is contributing to the situation, but it could also help to avoid it. The crypto industry will have to use AI to always examine its systems to identify and block potential loopholes. Any crypto project that is not doing constant security checks might become a victim of hacks.

[Josefjix]

The trust on cex will be reduced for a while, and I know that newbies will keep it busy but old users will stay away from using cex no more.

I wonder if CEX was actually created to be destroyed so as to discourage crypto currency investors from trusting and ever using crypto currencies because this has caused a lot of panic and pain lately and I cant say what's next in line for the unrevealed heartbreak we are going to face come 2027 with stricter regulations and policies.

Yes, I am expecting for such rules that will incurred on many users after this incident, even many countries may put on a ban on crypto or similar restrictions, I know there will be lots of negative news coming up next year from the government because of what happened to Binance. A bad time for the crypto enthusiast, the trust in centralization fading away.

[coupable]

Well, Binance has released withdrawals and deposits today. My happiness regarding the Binance case is that people with money in Binance still have the same balance in Binance.

I don’t think Binance will be able to withstand new hacking attacks as it did yesterday. Other exchangers with lower trading volume than Bybit and Binance are not prone to hacking schemes, so big exchangers should learn from them as well as from the successful hack attempts to improve their systems. I can name a couple exchangers that haven't had serious security flaws and have never been hacked.

[Perfectbaby]

What people do not understand about this hack that is currently circulating is that, they don't know if the attack is from internal or external because to me and from experience whenever something like this happens there should be a thorough investigation regarding the worker, such as staff and even their past workers whom they fire off from their work.
I know that, exchange like Binance that is well known would never jeopardized with their security as their platform contains series of money from different users, and realistically there are people who do save their money on exchange without them withdrawing it to external wallet to secure their investments or funds.

[Hamza2424]

Well bro, nothing was hidden from the start we all knew the side effects of giving full power to individuals and the platforms like Bybit and Binance are also part of the individual I am talking about. So they should have proper opsec in place.

One dev should not have access to all these wallets. They made a mistake and I am sure that dev is either a part of a syndicate or he did something unintentionally but someone else was controlling that dev.

As we already know, North Korean tries to get into big platforms as an employee and work there for years until they change code silently, as they did before and I am sure this dev will turn out to be someone from an organization. Because you can't make this much money without sacrifice.

[HelliumZ]

The negative impact of exchange and wallet hacks can be far-reaching, especially after a popular hardware wallet, Coldcard, was hacked a few days ago, leading many investors and holders to express their distrust of the security of hardware wallets. Right after the hack of Binance, the most popular centralized exchange in the cryptocurrency world, people's trust in exchanges will decrease to a large extent. Earlier, many people used to keep their crypto assets in exchanges, but after the exchange was hacked, their focus has changed. Now people have reduced their trust in hardware wallets and are even being forced to reduce the importance of popular exchanges.

[Sarah Jordan]

What people do not understand about this hack that is currently circulating is that, they don't know if the attack is from internal or external because to me and from experience whenever something like this happens there should be a thorough investigation regarding the worker, such as staff and even their past workers whom they fire off from their work.
I know that, exchange like Binance that is well known would never jeopardized with their security as their platform contains series of money from different users, and realistically there are people who do save their money on exchange without them withdrawing it to external wallet to secure their investments or funds.

Whether the hack is internal or external, it has sent a negative news to the market which can make investors to be careful on how they distribution their investment in the market. Binance has the money and even though they experience another hack now, it's not going to affect the team because they are making money from the market.
If this same hack happens  to another exchange, it could make them go fully bankruptcy.