A recent study by Web3 firm De.Fi raises concerns about governance risk in the cryptocurrency market.
According to their report, nearly 75% of the top traded tokens exhibit significant governance vulnerabilities, leaving them susceptible to security threats like exploits.
The analysis of 429 tokens with governance frameworks revealed issues such as undisclosed ownership and wallets with privileged access, highlighting prevalent risk factors.
Only 16.6% of these assets utilise multisig wallets, which could help mitigate risks by requiring authorisation from multiple private keys.
The low adoption of multisig wallets suggests a gap in implementing best practices for governance and security across leading cryptocurrencies.