Dyma Budorin, the CEO of smart contract auditing firm Hacken, believes that Web3 cybersecurity providers are failing the crypto industry. He highlighted that huge blind spots in market practices are impacting investor behavior.
Budorin said many providers perform falls short of reassuring user and projects due to a lack of accountability and transparency in the audits. Smart contract auditors, currently, take no accountability if a token they have audited gets hacked. Some of the largest hack incidents in 2022 so far occurred on projects that were audited by third parties.
Hacken’s boss says this compromises the growth trajectory of the Web3 cybersecurity industry which is already far behind non-crypto equivalents. The firm highlighted that Web3 auditors take a deep dive into the code of a token in search of threats of varying severity. It does not assess other factors like the viability of a business model, team experience, and others. Budorin outlined that auditors have a lot of responsibility which is being ignored. Money is coming in and there is no public outcry for better products. However, he said the services they provide are inadequate. Budorin believes that auditors are missing tests, accountability, and transparency in the ratings of cryptocurrencies.
They would not be able to get it from cybersecurity firms in Web3 because there are no companies offering recurring audits that happen monthly and go into more depth about the project. Budorin believes the best market practice right now is to get a token audit. He used token bridges to demonstrate the dangers of an industry without thorough auditing mechanisms.
Budorin says the Web3 cybersecurity space will really change. The onus rests on retail investors and more transparency with reliable information from accountable sources. It requires a paradigm shift from crypto investors who invest in hyped-up projects.