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Coldcard's Fifth Wave, DTCC Tokenization & ETF Winner-Take-Most | Aug 4
Audio is available on Spreaker — see link below.
Bitcoin self-custody faces a structural reckoning as Galaxy Research confirms up to 2,055 BTC drained from Coldcard devices via an AI-discovered entropy flaw. Plus: DTCC targets October blockchain settlement, JPMorgan's tokenized deposit network, ETF concentration, and DeFi losses near $1B.
Audio is available on Spreaker — see link below.
One hundred million dollars in Bitcoin is gone, stolen through a firmware flaw that sat undetected for five years inside one of the most trusted hardware wallets in crypto. Galaxy Research has confirmed one thousand, five hundred and ninety-six Bitcoin drained from Coldcard devices, and a fourth wave of losses could push that figure to two thousand and fifty-five Bitcoin, roughly one hundred and thirty million dollars.
Coinkite, the company behind Coldcard, suspects advanced AI models identified the entropy weakness during a firmware review. That detail matters more than it might seem.
The deeper disruption here is narrative. Self-custody has always been positioned as the answer to counterparty risk.
The Depository Trust and Clearing Corporation, which handles roughly two point four quadrillion dollars in securities annually, completed a tokenized settlement pilot in May and is targeting an October rollout with more than fifty firms. The pilot involved Ondo Finance, Kinexys, Mastercard, and Ripple crossing borders.
On the market side, the Fear and Greed Index is sitting at twenty-five to twenty-seven, deep in extreme fear territory. Bitcoin dominance is above fifty-six percent.
DeFi exploit losses in the first half of twenty twenty-six are approaching one billion dollars. Drift and Kelp DAO alone account for five hundred and seventy-seven million.
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