Coldcard flaw drains up to $70M in Bitcoin as social mood hits a record low

Social media chatter about leading cryptocurrency, Bitcoin, has plunged to the most negative depths on record in the immediate aftermath of the Coldcard hardware wallets exploit that drained an estimated 1,082 BTC, worth roughly $70 million, from affected users. 

The social sentiment readings tracked by Santiment confirmed the sour mood after a security event that affected almost 1,200 self-custody wallets.

Why the Coldcard wallet hack was a sucker punch

Crypto holders store their tokens on hardware wallets to safeguard them against the various operational and security risks that target centralized exchanges every day. In fact, the “Not your keys, not your crypto” phrase became popular after users lost access to their tokens after exchanges failed in the past. 

In essence, your crypto should be safe as long as your keys are securely stored. However, all of that logic failed in the Coldcard incident, which Santiment believes was enough to compound the historic breakdown in sentiment. 

In the first full day of trading since the Coldcard exploit, Santiment data logged positive Bitcoin commentary at its lowest level compared to negative posts. The Saturday reading is the worst the firm has recorded since it adopted its current tracking method across X, Reddit, Telegram and other social media platforms. 

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