Why Are Crypto Projects Increasingly Using Bug Bounties?

Crypto projects can spend heavily on audits and security infrastructure, but even audited code can contain vulnerabilities. Bug bounty programmes offer another layer of protection by financially rewarding security researchers who identify flaws before attackers can exploit them. For crypto projects handling large amounts of user funds, this can be particularly important because a single smart-contract vulnerability can have serious consequences. A well-designed bounty programme can also demonstrate that a project is willing to have its technology tested by independent researchers. Should investors consider the presence and size of a bug bounty when evaluating how seriously a crypto project takes security?