Stacks Co-Founder Reflects on Coldcard Incident, Calls for BTC Diversification and Industry Collaboration

ME News reports that on August 2 (UTC+8), Stacks co-founder Muneeb Ali shared insights on the Coldcard wallet incident, distilling key lessons in three areas: Bitcoin storage, quantum computing threats, and ecosystem security. Muneeb noted that the Coldcard incident is particularly regrettable because many affected users were long-term Bitcoin holders with low risk tolerance—individuals who deliberately avoided speculative investments, learned self-custody, and viewed Bitcoin as a long-term store of value, yet still fell victim to the breach. On Bitcoin storage strategies, Muneeb argued that the optimal approach moving forward should be asset diversification rather than concentrating all funds in a single solution, emphasizing “don’t put all your eggs in one basket,” and recommending: - 20%-30% of BTC allocated to ETFs such as BlackRock’s IBIT, to benefit from professional custody and regulatory protections; - 40%-50% of BTC secured via multi-signature solutions similar to Casa, such as a three-key setup distributing keys across a security firm, a mobile device, and a hardware wallet; - 20%-30% of BTC managed through advanced self-custody methods combining multiple hardware wallets and distinct entropy sources. Regarding quantum computing threats, Muneeb stated that once quantum computers break current cryptographic systems, Bitcoin users may face a shock akin to “BTC suddenly being drained from cold wallets.” He emphasized that the quantum threat is real and that the industry must prepare proactively rather than underestimating technological progress—especially given how large language models (LLMs) are accelerating breakthroughs in scientific research. On Bitcoin ecosystem development, Muneeb observed that over the past few years, parts of the Bitcoin community have become overly insular, resulting in many top-tier security researchers and institutions being excluded. Many industry security experts were even unaware of Coldcard, and leading security research firms may not have conducted thorough audits of its code. He urged Bitcoin companies to reduce ideological divisions and collaborate more broadly with the wider security community—including professional firms like Trail of Bits. Muneeb stressed that the Bitcoin community should be more open to engineers from other crypto ecosystems, as exceptional security talent does not exist solely within Bitcoin-only circles. “When Bitcoin is harmed, the entire industry suffers,” he said, calling on the sector to set aside internal disputes and strengthen collaboration to build a more secure cryptographic ecosystem. (Source: PANews)