The crypto industry is facing a critical security issue, projected to lose approximately 4% of its total value locked to hacks in 2025, translating to over $4 billion in losses annually. Despite the potential for rapid transactions and mass adoption that blockchain technology offers, the security challenges create a significant barrier for institutional investors who are reluctant to engage due to high hack rates. Hacked protocols typically suffer from prolonged value suppression, with negative impacts lingering for months. The article argues that to attract institutional capital, the industry must reduce hack rates to below 1%. Comprehensive security measures, such as AI-driven monitoring, adequate vulnerability rewards, and rigorous auditing, are necessary to mitigate risks. As North Korean hackers target development teams, investment in proven security tools is critical. The author posits that crypto's survival hinges on promptly addressing these vulnerabilities and evolving security practices, or it risks ceding opportunities to traditional financial sectors, allowing hackers to thrive at the industry's expense.

Source đź”—