Yet another crypto company fell victim to hacking and lost $190 million in funds. The company in question is Nomad Token Bridge and the hacking incident happened on August 2nd, 2022. Nomad is the newest addition to a casualty list which includes Solana and Axie Infinity. Experts are speculating on the viability of cross-chains and related technologies. There are companies which have avoided being hacked or exploited.
Osmosis’ Sunny Aggarwal, a co-founder spoke to a news outlet on this matter. As a very popular DEX or decentralized exchange using the Cosmos hub, Osmosis has $120 million in funds. This amount is the total locked value. According to Aggarwal, all of the bridge hacks are a sign that these bridges are not robust enough. They have too much capital in custody and their systems are not very strong.
With close to 50 blockchains using an IBC to conduct high transaction volumes every day, it is important to work with a robust one. The trustless nature of the IBC system is what helps it work seamlessly. IBCs have to become a serious mode of communications across different chains, according to Aggarwal. Aggarwal is well-known for his role as DeFi architect. In this capacity, he was able to shed light on the resilience and use of IBC.
Aggarwal said that Osmosis ran a big test after news of Terra Luna’s collapse. The company was able to figure out ways to prevent malicious activity in draining OSMO stakes. They were able to implement a stop in trading activities by distributing failure points throughout the chain. This was a good indication that IBC is a safe protocol. Over $2 billion in funds have been stolen via hacks since the start of the year.