Lorenzo Valente, ARK Invest’s head of digital assets research, said cryptocurrency hacks act as a hidden transaction tax and a cost of storing value, similar to retail losses from shoplifting, with the costs ultimately passed on to users through pricing. According to Odaily, since 2018, the crypto industry has lost an average of 24 basis points (0.24%) of its total market capitalization each year to hacks. By comparison, fraud-related deposit losses in the U.S. banking system were 1.7 basis points (0.017%), about 14 times lower. Valente said each hack weakens the competitiveness of crypto networks.