Dogecoin community member Mishaboar urged users to reassess how they store crypto, using the Coldcard breach as a fresh example of wallet security risks. In an August 8, 2026 X post, he said a good hardware wallet keeps seeds and keys inside a dedicated chip isolated from the internet, while a software wallet stores keys on an always-connected computer or phone. The warning followed what Galaxy Research described as the third-largest crypto hack of 2026. The report said $111 million, or 1,719 BTC, had been confirmed stolen in the Coldcard exploit, and estimated losses could climb to $130 million as additional coins are verified. Galaxy Research said a firmware bug from March 2021 weakened seed randomness on some Coldcard wallets, reducing key strength from 128 bits to as little as 40 bits, a level that could be brute-forced without physical access. Attackers have been draining wallets since July 30, 2026. Mishaboar said smartphone wallets carry extra uncertainty because security depends not just on device hardware but on how wallet developers implement key protection. He argued ordinary users cannot easily evaluate risks such as weak seed generation, backdoors, information leaks, malicious updates, insecure backups, or obscure derivation paths. He said software wallets can still be useful as hot wallets (internet-connected wallets for frequent use) for limited balances, payments, trading, or smart contract (self-executing blockchain code) interactions, but should not be relied on for long-term savings.