The article discusses the misconception that well-funded blockchain projects are inherently secure. It emphasizes that while venture funds may perform due diligence, they often lack the expertise in Web 3.0 security, leaving projects vulnerable to external attacks. Such vulnerabilities can lead to financial loss not only for investors but also for users, risking the reputation of the entire industry. The piece uses the case of WazirX, which lost $230 million due to a security breach, to illustrate these concerns and stresses the need for a focus on security by venture funds.
Despite having access to powerful mechanisms, 'money people' are not usually experts in Web 3.0 security, making them unaware of external vulnerabilities.
Even if a project might be safe from internal malicious actions, it can still fall victim to external attacks that affect users.
Loss of financing due to vulnerabilities not only harms the specific project, but also damages the reputation of the entire Web 3.0 industry.
The sooner we detect and eliminate vulnerabilities, the better we can prevent major incidents and preserve the reputation of involved venture funds.
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