Bitcoin

September 19, 2025 at 10:36

Password over traders: custody saved Kevin Durant's BTC from panic selling

Opinion: Passwords can be more protective than traders. Kevin Durant bought bitcoin in 2016 at about $360–$1000, but he forgot his Coinbase password. Since then, the price surged roughly 11,000% and BTC stayed untapped. Now he’s getting help regaining access, and the agent notes, “The password saved him from fatal selling.” Crypto custody on Bybit is part of the story, with a nod to the Golden State Warriors. This anecdote highlights a simple truth: access and custody matter as much as market moves. The tale underscores how a single access issue can lock in huge gains or trigger losses if panic hits. It’s not about predicting price moves but about securing assets so they aren’t forced to sell during volatility. In crypto, control of private keys and exchange access can determine whether gains are realized or erased, especially after long periods of inactivity. Bottom line: custody and password management are critical. A secure setup—private keys backed up, hardware wallets, and reliable recovery options—can prevent catastrophic selling and preserve long-term gains, even when markets swing wildly.

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Analysis

The text center on a custody risk scenario in crypto: a high-profile holder forgot access, exposing a large unrealized gain to potential sale. It underscores non-price risk—security and access control—as a material factor in outcomes. The anecdote illustrates that having control over private keys and account recovery can avert forced selling during drawdowns or surges. While it references Bitcoin’s strong upside (11,000% since 2016), the core takeaway is about safeguarding access and implementing robust custody practices to protect gains in a volatile market. The narrative serves as a cautionary tale about reliance on centralized exchanges for long-term wealth and the importance of self-custody, backup phrases, and recovery options. The mention of Bybit and the “Golden State Warriors” framing adds color but does not alter the custody-centric thesis.

Recommendation

Take practical custody steps to reduce withdrawal or access risk: 1) use a hardware wallet for long-term holdings; 2) back up seed phrases offline in multiple, secure locations; 3) enable biometric and multi-factor protection on all exchanges; 4) periodically test access recovery and keep recovery information current; 5) diversify custody across wallets and trusted custody solutions to reduce single points of failure. Treat password management as a core part of your investment plan, not an afterthought, and review it regularly as part of risk management.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.