Decentralized apps and protocols are prime targets for hackers. Exploits in smart contracts, wallets, or governance systems can instantly drain millions in value.
A single overlooked vulnerability in a smart contract can lead to massive losses or even complete protocol failure. And there can be a cascading effect where other protocols are impacted.
Then there’s regulatory uncertainty. Global regulators are still figuring out how to handle Crypto, DAOs, tokenized assets. Non-compliance with fast-moving regulations can lead to investigations, fines, or shutdowns.
Governance disputes can quickly escalate. And infrastructure risks are yet another factor to keep founders awake at night.