Beyond Audits: Why Institutional Investors are Redefining Crypto Trust Signals

The era of relying solely on smart contract audits is coming to an end. A recent Hacken report reveals that institutional investors are shifting their due diligence toward continuous monitoring and signer controls as traditional trust signals fail to prevent massive exploits. The industry is realizing that a one-time audit is no longer a shield against sophisticated attacks.

With compromised keys and infrastructure accounting for a staggering 88.3% of the $764 million stolen in Q2, the stakes have never been higher. Projects lacking incident readiness and ongoing operational security evidence will likely face increased perceived risk, diminished investment, and significant hurdles in securing insurance or institutional counterparties.

Crypto institutions are looking beyond audits as trust signals falter, according to Hacken. Institutional due diligence is shifting toward continuous monitoring, signer controls, and incident readiness after operational failures accounted for most crypto losses.