Understanding the Decrease in Web3 Attacks and Rug Pull Incidents in Q1 of 2023

On April 12th, according to the Beosin EagleEye security risk monitoring, warning, and blocking platform under the blockchain security audit company Beosin, 61 major attacks in the Web3 field were detected in the first quarter of 2023, with a total loss of approximately $295 million, a decrease of approximately 77% compared to the fourth quarter of 2022. The total loss amount in the first quarter of 2023 is lower than any quarter in 2022. In addition to attacks, 41 major Rug Pull events were also monitored in the first quarter of 2023, involving approximately $20.34 million.

Data: The total loss of Web3 attacks in the first quarter was approximately $295 million, a decrease of 77% compared to the previous quarter

Introduction

On April 12th, Beosin EagleEye Security Risk Monitoring, Warning, and Blocking Platform identified a promising drop in attacks that occurred in the Web3 field in the first quarter of 2023 in comparison to the previous quarter. The report further reveals that the total losses experienced in Q1 2023 is the lowest in the past year. Additionally, the report discovered that more than 40 significant Rug Pull events transpired, ultimately resulting in a loss of approximately $20.34 million.

What is Web3?

Understanding the Basics of Web3

Web3 is a term used to describe the internet’s next evolution stage where online communications and finance are brought together. Decentralized websites powered by blockchain technology, especially Ethereum, Avalanche, and Solana ecosystems, are at the forefront of this new wave. Instead of depending on centralized systems, Web3 conducts transactions and verifications through a mesh network of nodes where contracts can operate without intermediaries.

Web3 Security Risks

Web3 sectors have been witnessed to experience a surge of security threats, putting users’ wallets, funds, and private information at risk. The following are some of the most prevalent security threats that have been observed:
– Phishing attacks
– Man-in-the-middle attacks
– Smart contract attacks
– Rug Pulls

Web3 in Q1 2023: The Statistics

According to the Beosin EagleEye report, Q1 2023 experienced a decline in attacks by 77%, resulting in a total loss of roughly $295 million. The total loss amount at this point is lower than any quarter experienced in the year 2022. This shift can primarily be credited to some platforms’ increased preparedness and the improvement in Web3 education for new users.
A total of 41 significant Rug Pull events were discovered, causing approximately $20.34 million in losses. However, compared to the previous periods, the figure has reduced drastically, signifying that the Web3 community is beginning to conduct thorough research on scam projects before investing.

How to Combat Web3 Security Threats

Better Education

To avoid falling prey to scams and attacks, it is essential to stay informed about current Web3 security trends. Improved education will assist users in comprehending the security threats that they may encounter while using Web3 and equipping them with the necessary skills to recognize and avoid attacks.

User Verification

User verification is a vital part of Web3 security. It is more challenging to perpetrate attacks when users have undergone some form of KYC (Know Your Customer) verification process. Requiring users to submit identity verification documents, such as a passport or driver’s license, can help curb security breaches.

Smart Contract Audits

Smart contract audits are conducted to check for errors and vulnerabilities that could be exploited by hackers. These audits can help minimize the potential for code exploitation, which may result in potentially devastating losses. It is critical to have smart contracts analyzed by competent auditors before deploying them.

Conclusion

Web3 technologies represent a new frontier in digital innovation, but as with all emerging technologies, there are risks associated with widespread adoption. Luckily, in the first quarter of 2023, Beosin EagleEye reported fewer incidents of Web3 attacks, highlighting the importance of thorough research, education, proper due diligence, and collaboration. As the Web3 industry continues to grow, keeping users’ funds and data safe will require ongoing vigilance and a dedicated approach to solving security challenges.

FAQs

What is a Rug Pull?

A Rug Pull is a type of rug scam where a project’s creators or insiders accumulate as many users as possible to invest in their project, and then they exit scam, leaving investors with empty wallets.

How Can I Protect Myself From Web3 Attacks?

The best way to protect yourself from Web3 attacks is through improved education about web3 security trends, conducting thorough research on potential investments, and submitting the necessary identity verification documents.

How Do Smart Contract Audits Work?

Smart contract audits involve a thorough and comprehensive review of a smart contract’s code to identify vulnerabilities, errors, and potential points of exploitation. It is conducted by qualified auditors who verify the code before it is deployed to the public.