Cryptocurrencies are increasingly seen as interesting assets by early adopters in the tech industry, according to crypto statistics. For instance, according to Statista, the global user base of crypto has increased by more than 190% since 2018, thanks to the decentralized nature of the blockchain. However, by the end of 2022, this feeling of security was hardly shaken.

Web3 has undergone a tectonic shift in recent months as more and more security products try to meet the critical need to protect users, protocols and chains from illegal on-chain activities.

Today is a special day for me, we are launching Hypernative to the world, coming out of stealth and announcing our $9M funding round. We are also announcing the first crypto security operations platform “Pre-Cog” which is already used in production by a few early customers and already helped protect and save tens of millions of dollars to our users.

On December 29, 2022, Jaypeggers, a tax-loss harvesting app for NFTs, suffered a reentrancy attack that resulted in the theft of 15.32 ETH, worth approximately $18,000. The stolen funds were cashed out through Tornado Cash and Aztec. The Hypernative system was able to detect the attack and notify the Jaypeggers team in real-time, providing assistance in the investigation.

When talking about security exploits, this past year has been one of the toughest the web3 and crypto communities have ever known. Over 3B$ was stolen in 2022, with October taking the lead at over 700M$. Hypernative strives to create new ways to secure digital assets (crypto) and web3. Not only do we aim to protect participants like investors, traders and users, but also protocol developers.

As the use of blockchain becomes more and more prominent, and undoubtedly an integral part of the future, it is important to both acknowledge its advantages and be aware of the challenges it brings with it.

As more people and institutions are participating in web3, taking part in the blockchain, and investing in crypto assets - more hacks and exploits arising to take advantage of this new technology that is still not secured.