BlockBeats News, July 20th, Blockchain security company Hacken released a report stating that crypto institutions are reevaluating project security standards. Traditional smart contract audits and operational history are no longer sufficient as a trust basis. Investors are now focusing on continuous monitoring, signature permission management, and event response capabilities.

According to the Hacken 2026 Q2 Security & Compliance Report, out of 1427 projects tracked, only 9% have deployed third-party continuous monitoring mechanisms, and only 4% of projects have both monitoring, bug bounty programs, and security audits.

The report shows that out of approximately $7.64 billion in crypto asset losses in Q2 2026, 88.3% came from private key leaks, signature permission issues, and infrastructure security issues, rather than smart contract vulnerabilities.

Hacken stated that institutional investors are gradually adding considerations such as signatory changes, staked asset support, third-party dependencies, event response capabilities, and assessment of audit scope and timeliness to their due diligence.

The report points out that the 14 projects attacked in Q2 had all undergone audits previously, but most losses came from areas beyond the traditional audit coverage, including signature devices, cross-chain bridge validation nodes, backend infrastructure, administrator keys, and still active old contracts.

Hacken said that as institutional funds enter the crypto market, projects lacking continuous security proof may face higher risk premiums, fewer investment opportunities, and difficulties in obtaining insurance and partner support. Federico Bagiotti, Head of Risk Management at Abraxas Capital, stated that the matching of security levels with funding size has become a key criterion for institutional investment decision-making, compared to project potential.