Crypto is greater than traditional finance. Unlike Swift, which can take days to treat payments, more recent blockchain networks reach the purpose in a few seconds and have a sufficient flow for the mass adoption of the real world. The American secretary of the Treasury, Bessent, the Stablecoins only projects will reach 3.7 billions of dollars by 2030. It is the equivalent of the GDP of Germany.
Despite its technological advantage, the crypto has a major security problem. We are on the right track to lose around 4% of the total value locked in hacks in 2025. In H1 only, the industry lost more than $ 2 billion. When annualized, this indicates more than $ 4 billion in pirate wallets this year.
If these losses were reflected in traditional finance, the entire system would collapse. However, Crypto normalizes catastrophic loss rates while wondering why JPMorgan does not move their balance sheet on the channel.
Hacks cost more than you think
Real damage goes far beyond the immediate flight. It is a burden on the whole ecosystem and it is at the price. Pirated protocols undergo a median price decrease of 52% over six months, the majority still showing a suppression of semi-year prices later.
For an aspiring industry to manage the richness of the world, it is an existential problem. No traditional financial market could survive with annual flight rates of 4%. To unlock institutional flood doors and bring the next billion dollars in chain, we need to generate hack rates less than 1% – now.
North Koreans track down your development team
At a time when a crypto project announces funding, the North Korean pirates begin social engineering attacks against development teams. They have become frightening. Look at the Hack Capital Radiant – $ 50 million disappeared because the attackers compromised the devices via malicious software that infected the signature of transactions.
The most painful part of all this is that we have the tools to stop this, and they continue to improve. IA -based surveillance systems can identify and solve critical security problems before the code deployment, by capturing vulnerabilities that humans are lacking. Audit services connect projects with Elite Web3 security researchers to provide tailor -made security reports. We have the tools, but the projects are always shipped with unique and prayed pre-launch audits. Protocols establish rewards to identify vulnerabilities at 1% of risk funds when they should be 10%. In addition, they jump surveillance because it seems expensive until they explain to users why $ 50 million have disappeared.
How to prepare the crypto for prime hours
Reducing hacking rates less than 1% is an engineering challenge that we already know how to resolve. Protocols must adopt full security batteries: continuous surveillance, significant security rewards to encourage security researchers, formal verification for critical components and detection of threats fueled by AI. The cost is trivial compared to potential losses.
Banks and institutions see these hacking rates. They manage the calculation. And they conclude – properly – that the crypto is not ready for prime time.
DEFI has survived each market accident without any systemic debt. We have solved technical problems. Security cannot be a reflection afterwards. Either we adopt the security tools that we have already built, or we look at a deployment of institutional capital elsewhere while the pirates finance their operations with our losses.
