This is an interesting week for ICOs, many of which were subject of a report concerning their vulnerabilities. A security auditor found that many ICOS have an average of five vulnerabilities, and many of them are moderate or severe.
The report was conducted and released by a research popup called Positive.com. The platform specializes in ICO security. According to the research group member, Leigh-Anne Galloway,
“In an ICO, time is of the essence, and short time frames mean that anticipating attacks well in advance is critical for avoiding financial losses. The latest figures have shown the rapidly increasing rate of crime and fraud on the cryptocurrency market, with cybercriminals recognizing the opportunity presented by the dramatic rise of the cryptocurrency market in recent months.”
The question that remains is the impact that the vulnerabilities will have upon the industry. At this point, the damaging vulnerability can stop a ICO from effectively progressing. Further, ICOs are no strangers to hacks, which may involve fund raining and other issues. Galloway added that
“The second a company goes public with an intention to do an ICO, it’s waiving a huge flag to cyber criminals that it’s both valuable and also in a very vulnerable phase of its company growth.”
In light of Galloway’s statements, it would not be off-base to discern that ICOs have a responsibility to ensure that their platforms are secure and that development is in a good state. This way, they’ll be able to avoid the risk that issues may arise that will not only put the ICO in harm’s way, but also investors.