Crypto is more than traditional finances. Unlike Swift, which can take days to process payments, newer blockchain networks have achieved the end of seconds in just seconds and have enough throughput for real-world mass adoption. US Secretary of Treasury Bescent Projects Stablecoins will only hit $ 3.7 trillion in 2030. That’s the equivalent of Germany GDP.
Despite its technological edge, crypto has a major security problem. We were on track to disappear around 4% of the total amount locked in hacks in 2025. In H1 only, the industry lost more than $ 2 billion. When annualizing, pointing to more than $ 4 billion flowing through hacker wallets this year.
If these losses are a mirror in traditional finances, the whole system will collapse. But cryptos normalize catastrophic loss rates while wondering why JPMorgan does not move their on-chain balance.
Hacks are worth more than you think
Real injury is beyond immediate theft. This is a burden to the whole ecosystem and it gets the price. Those that -hack protocols suffer a median 52% drop of token price Within six months, with most people still show the price suppression half a year later.
For an industry that wants to manage the wealth of the world, it is an existing problem. No traditional financial markets can survive with annual robbery rates approaching 4%. To unlock institutional flood doors and bring the next on-chain trillion, we must drive hack rates below 1%.
North Koreans are running your development team
Once a crypto project announced funding, North Korea hackers began social engineering attacks on developing teams. They are so scary here. See Radiant Capital Hack – $ 50 million lost because the attacks have compromised devices through malware that is infected with transaction.
The worst part of it all is that we have tools to stop it, and they will continue to heal. AI-driven tracking systems can detect and resolve critical security issues before the code is deployed, gaining weaknesses that people have missed. The service services connect projects to the elite web3 researchers researchers to deliver adapted security reports. We have tools, but projects still send single pre-launch audits and pray. Protocols set rewards to identify weaknesses in 1% of funds at risk when they should be at 10%. In addition, they skipped the monitoring because it seemed expensive until they explained to users why $ 50 million was lost.
How to prepare a crypto for primetime
Reducing hack rates below 1% is a challenge to engineering we already know how to solve. Protocols should embrace comprehensive security stacks: ongoing monitoring, significant price of security rewards to encourage security researchers, formal verification for critical components and discovery of AI-powered threats. The cost is worthless compared to potential losses.
Banks and institutions see these hack rates. They run the math. And they end – right – that crypto is not ready in prime.
Defi survived every market crash without a systematic debt. We solved technical problems. Security cannot be a thought. Either we adopt the security tools we have already built, or we watch institutional capital expands elsewhere as hackers fund their operations in our losses.
