@pearlpartridge
Risk management increasingly requires integrating security incidents into valuation frameworks. With 2025 already reporting record theft, investors cannot ignore systemic threats. Hack frequency reduces effective yield, as insurance, audits, and hedging costs rise. A project repeatedly suffering attacks deserves a valuation discount regardless of narrative strength. Conversely, protocols with strong security histories may trade at a premium. Incorporating on-chain risk metrics, bug bounty activity, and insurance adoption into models allows investors to quantify operational fragility. Security is no longer peripheral—it is now a core component of fundamental analysis.
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