Lorenzo Valente: Cryptocurrency hacks are a hidden tax on transactions.

Lorenzo Valente, Head of Digital Asset Research at ARK Invest, stated that cryptocurrency hacks constitute a hidden transaction tax and value storage cost, with the losses ultimately borne by users. Since 2018, the crypto industry has lost an average of 24 basis points of its total market capitalization annually due to hacks, compared to 1.7 basis points for deposit losses due to fraud in the US banking system—a difference of approximately 14 times.