Asia Web3 research and consulting firm Tiger Research diagnosed in its report 'Web3 Industry Hacking Cases, What is the Solution?' that "hacking is repeatedly occurring in the Web3 industry, but the structural limitation of a fund recovery rate remaining below 10% is undermining industry trust." The report explained, "As of Q1 this year, the proportion of social engineering hacks expanded to 74.7%, making people, rather than code, the primary attack vector. Due to the on-chain nature, there are insufficient means to reverse fund theft, leading to the perpetuation of damages." It further emphasized, "While centralized exchanges absorb damages through reserves and cooperation systems, DeFi has limited capacity to respond. For institutional inflow, establishing an incident response structure and a responsible operating system must precede technological advancements."
