Crypto hacks highlight the need for more cybersecurity

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Among the many innovative technologies that intersect with other disruptive themes, cybersecurity tops the list.

That’s a bright spot for a variety of exchange-traded funds, including the First Trust Nasdaq Cybersecurity ETF (CIBR). Following large-scale ransomware attacks this year on energy pipelines, meat packing plants and other assets, the case for cybersecurity spending and investment has never been stronger .

CIBR tracks the Nasdaq CTA Cyber ​​Security Index and is home to familiar stocks such as CrowdStrike Holdings (CRWD), Accenture Plc (ACN), and Cisco Systems (CSCO), among others. After gaining 4.65% in August, the CIBR is up 16.16% year-to-date and is near all-time highs. Another disruptive segment, cryptocurrency, could intersect with cybersecurity, as crypto breaches are always problematic.

Between 2011 and 2021, there were 208 notable crypto breaches, with a total of $ 19.2 billion stolen during that period, according to Cyrpto Head. In 2011 there were nine offenses, with over $ 9 million collected, but that number almost doubled in 2013 and rose to 38 in 2020 and 32 so far in 2021, showing how point offenses increase rapidly.

Highlighting the case for CIBR, especially as more investors embrace crypto and the prices of many digital coins skyrocket, the fact that 2021 is turning out to be an ugly year on the hacking front cryptographic.

While 2021 appears to be the year with the most violations, 2017 was the year that hackers made the most money, stealing highs of $ 4.7 billion in total and $ 223. $ 5 million on average, notes Crypto Head.

Crypto exchange operators and digital wallet providers need to take cybersecurity precautions, which could offer potential with CIBR. Businesses that prove to be vulnerable to cyber attacks risk not only losing customers, but also running into regulators. Businesses should be forced to spend on cybersecurity because, unsurprisingly, it’s often the most common crypto assets that are targeted in breaches.

Out of 208 breaches, 59 different cryptocurrencies were stolen, with Bitcoin most often targeted because it was involved in just over a third of breaches, with 94 over the past decade, notes Crypto Head. As the world’s most popular cryptocurrency, it’s no surprise that Bitcoin is the most stolen. The second most popular coin, Ethereum, is the second most targeted, with 36 breaches representing 12.8% of the decade’s total breaches.

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The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.

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