Editor’s note: This article was updated on March 9 to correct how the Lossless team protects assets during a hack or exploit.
Cybersecurity is an increasingly critical element of blockchain technology. Of course, the blockchain is an unalterable, transparent and permanent way to store data. But, many projects that run on the blockchain are still vulnerable to exploits and hacks. Beyond this risk, many malicious actors seek to take advantage of investors. Thus, investor interest is starting to drop sharply for cybersecurity cryptos.
There are a variety of projects and organizations making cybersecurity a fundamental cornerstone of digital money. Some pop up to help users spot malware. Others help investors by providing in-depth reviews of new cryptos. In fact, even the US government is making a foray into crypto-specific cybersecurity; last month, the FBI launched a crypto unit to track criminals through their crypto assets.
As this cybersecurity renaissance takes off, investors are looking for ways to profit from it. Fortunately, many of these projects have their own cryptocurrencies. This means supporting an up-and-coming player is as easy as buying and using their native token. With that in mind, what are the best cybersecurity cryptos to invest in?
Consider one of them:
- Hack Token (HAI-USD)
- CertiK (CTK-USD)
- Polyswarm (NCT-USD)
- quantum stamp (QSP-USD)
- lossless (LSS-USD)
Cybersecurity cryptos to buy: Hacken Token (HAI-USD)
Hacken Token is the underlying cryptocurrency of the Hacken Foundation. This is a group of companies that have come together to provide a safer blockchain experience for their customers. As part of this goal, the group created the HAI token, which is one of the best cybersecurity cryptos to buy right now.
The Hacken project works closely with customers, most of whom are developing their own Web 3.0-oriented projects. It bolsters the infrastructure of these projects with increased cybersecurity protections. Some of his projects ensure that market maker clients comply with regulatory guidelines. Others seek to protect customers against Distributed Denial of Service (DDoS) attacks, which can completely disrupt a site’s traffic.
Hacken provides these services to dozens of clients, including exchanges FTX and Gate.ioas well as a data aggregator CoinGecko. The foundation even has a partnership with the Ukrainian government to support its blockchain initiatives.
The HAI token was launched in May 2020. By holding it, developers have reduced access to Hacken’s many services. Most importantly, holding HAI grants access to membership in the Hacken Club. Members who hold enough tokens can earn an annual percentage yield (APY) of up to 9% for staking their tokens.
One of the first rules for researching new cryptos is to find the audit results of a project before investing. Crypto audits are an increasingly essential aspect of any given project – they provide a certain badge of legitimacy.
CertiK is a crypto security project that is one of the best known auditors.
CertiK, like the Hacken Foundation, offers many different services. Its tools can be used to simulate cyberattacks or to provide on-chain security. However, it is perhaps best known for its audits, which can be appreciated by both developers and users.
By using CertiK, developers can pay to have their crypto protocols reviewed. The CertiK team inspects the project’s code, looking for possible vulnerabilities that hackers could exploit. After this scan, the team communicates the vulnerabilities with the project, along with recommendations on how to fix them. Developers can then fix bugs before being re-audited and hopefully receiving positive results.
On the other hand, CertiK also keeps a watchful eye on projects that might not want to to audit. Indeed, many fraudulent coins and tokens appear, claiming to be the next big thing. CertiK assiduously tracks projects and alerts investors accordingly.
Cybersecurity cryptos to buy: Polyswarm (NCT-USD)
Polyswarm describes itself as “a launching pad for new technologies and innovative methods of detecting threats”. The platform hosts several cybersecurity projects that promote new ways to spot malware and other malicious activity.
The Polyswarm network hosts over 50 different engines designed to detect malware. These engines all operate differently and many use their own proprietary technology. Polyswarm’s job in all of this is to create a market for security engines that one can use to protect against malware. Users come to Polyswarm to find the right cybersecurity product for them.
Polyswarm’s NCT token is driving this economy of engines. Engine owners purchase NCT to complement the operation of their products. Other token holders can provide engine owners with additional NCTs to bolster their projects. Engine owners can generate passive income by earning NCTs whenever they provide relevant cybersecurity data; other users can also farm NCT by contributing their own data to the network.
Quantum Stamp (QSP-USD)
Quantstamp is perhaps the best known alternative to CertiK. It has protected over $200 billion in assets through its audits, which puts it not far behind CertiK’s $257 billion.
However, these auditors operate in different ways. While CertiK audits are a public matter, with any user able to read the full report, Quantstamp works privately with its clients. Quantstamp is also much smaller. While CertiK has audited over 1,700 projects, Quantstamp is behind only 200.
Still, the projects he works with are some of the biggest hitters on the blockchain. He initiated the audits for OpenSea, Solana (SOL-USD) and Binance (BNB-USD). The company is notably at the origin of the audit of Ethereum (ETH-USD) upcoming 2.0 update, helping developers roll out the upgrade as smoothly as possible.
The QSP token is quickly becoming one of investors’ favorite cybersecurity cryptos. Indeed, its transaction continues to rise following a bull run from July 2021 to February, when the value of the crypto quadrupled before falling again.
Cybersecurity Cryptos to Buy: Lossless (LSS-USD)
Lossless is a different project from the others here in that it doesn’t seek to prevent cyberattacks. Rather, it is dedicated to helping users combat ongoing attacks.
The Lossless network is made for token creators. Essentially, he wants to help minimize the pain of tokens hit by hacks and exploits. One of the biggest problems for creators is when these hackers and bad actors mix up crypto and try to get away with it. This creates all sorts of headaches when it comes to reporting circulating supply and other metrics; not to mention that it creates bad rapport with the token holders who are also scammed by these hacks.
The solution that Lossless presents is to stop these hackers before they can reach the mixing process. Lossless calls itself a “DeFi hack mitigation tool,” finding hacks as they happen and freezing assets before they can be removed from their legitimate platform. After that, Lossless can repossess the assets and return them to their owners.
The Lossless Network uses white hat hackers to spot hacks as they happen. These good actors create bots that can automatically spot exploits and notify affected creators about them. A project board then works with third parties to freeze and seize the assets.
As of the date of publication, Brenden Rearick has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.