Redefining Crypto Security: How Tangem's Seedless Technology Combats the 2025 Hacking Crisis and Drives Adoption

The cryptocurrency industry is at a crossroads. In the first half of 2025 alone, losses from hacks and exploits have surged to $2.1 billion, a 14% spike over 2024's $1.87 billion. This staggering figure is not just a number—it's a wake-up call. The Bybit hack, which saw $1.5 billion siphoned by North Korea-linked actors, epitomizes a broader trend: attackers are no longer just targeting code; they're weaponizing human behavior. Phishing, social engineering, and compromised multisig wallets now account for 80% of losses, according to CertiK. The human element, once the industry's blind spot, has become its most exploited vulnerability.

Enter Tangem. The company's seedless self-custody model is not merely a product—it's a paradigm shift. By eliminating the need for a 12- or 24-word seed phrase, Tangem addresses the root cause of 80% of crypto thefts. Traditional wallets force users to store, remember, and protect these phrases, a task that even seasoned investors find daunting. Tangem's approach, however, generates and stores private keys in a hardware-encrypted chip, secured by a Hardware True Random Number Generator (TRNG). The result? A wallet that is air-gapped, unalterable, and resistant to even the most sophisticated phishing attacks.

The technical architecture is as elegant as it is robust. Tangem's chips, certified at EAL6+ (one of the highest security standards in hardware), use cryptographic hash functions to derive 256-bit keys that never leave the device. Users can create up to three secure backups via a Diffie-Hellman key exchange, ensuring redundancy without exposing sensitive data. The firmware is non-updatable, a deliberate design choice to prevent supply chain attacks. This is not just security by obscurity—it's security by elimination.

The real-world impact is undeniable. In a year where the average user faces 12 phishing attempts per month (per Chainalysis), Tangem's seedless model removes the primary attack vector. The company's expansion into new markets—France, the U.S., the UAE, and Indonesia—has further accelerated adoption. By 2025, Tangem's user base has grown by 300% year-over-year, with its wearable ring attracting a younger, tech-savvy demographic. This isn't just a hardware upgrade; it's a cultural shift.

For investors, the implications are clear. The global crypto security market is projected to grow from $1.2 billion in 2024 to $3.8 billion by 2027, driven by the need for solutions like Tangem's. While competitors like Ledger and Trezor rely on traditional seed-based models, Tangem's first-mover advantage in seedless technology positions it to capture a significant share of this growth. The company's recent partnerships with DeFi platforms and staking services further underscore its potential to become a cornerstone of the self-custody ecosystem.

Critics may argue that hardware wallets remain a niche product, but Tangem's user-centric design challenges this assumption. The Tangem app, now featuring real-time push notifications and multi-account support, has lowered the barrier to entry for mainstream users. Meanwhile, the geopolitical dimension of crypto crime—such as the Nobitex hack by Israeli-linked actors—only reinforces the demand for tamper-proof solutions. Tangem's resistance to EMPs, X-rays, and extreme temperatures makes it a viable option for users in high-risk regions.

The investment thesis is compelling. As the crypto industry matures, so too does the expectation for security infrastructure to evolve. Tangem's seedless technology isn't just solving today's problems; it's anticipating tomorrow's. With no reported hacks since its 2021 launch and a roadmap that includes AI-powered monitoring for multisig transactions, Tangem is not merely reacting to the 2025 crisis—it's redefining the rules of the game.

For those who see crypto as the next financial revolution, Tangem represents more than a defensive play. It's an enabler. As the CEO, Andrey Kurennykh, aptly put it: “Security isn't about locking away keys—it's about giving users confidence in their own power.” In a world where $2.1 billion in losses is just the beginning, that confidence is worth more than gold.

The time to act is now. The crypto winter is over, and the next bull run will be defined by those who prioritize security as much as scalability. Tangem, with its seedless innovation, is not just surviving the 2025 crisis—it's leading the charge to a safer, more accessible future. For investors, the question isn't whether to bet on crypto's future—it's whether to invest in the tools that will protect it.