Allbridge co-founder: Many people do not even realize they are using crypto bridges

​Crypto bridges remain one of the most important and, at the same time, most vulnerable parts of the digital economy. Allbridge co-founder Andriy Velykyy explained how various challenges are reshaping the architecture of such projects, why AI has not yet become the main threat to the crypto industry, and where DeFi and stablecoins are heading. In an interview with Traders Union, he also discussed why bridges may soon become invisible to users and whether Bitcoin could reach $200,000.

Cross-chain bridges emerged as a response to one of the crypto market’s biggest problems: blockchains operate in parallel and cannot directly exchange assets and data. Without this infrastructure, users would have to withdraw funds to an exchange, convert them, and send them again to the required network each time. However, convenience comes at a cost: bridges connect different ecosystems and therefore remain among the most attractive targets for hackers.

The recent attack on Allbridge served as another reminder of these risks. The incident came at a time when the cross-chain transfer model itself is changing rapidly: projects are moving away from proprietary liquidity pools, stablecoins are becoming part of traditional payment systems, and regulation is forcing crypto companies to reconsider their strategies.

The hack that changed Allbridge’s strategy

– Allbridge was recently hacked. What exactly happened, what were the actual losses, and what measures did you take after the incident?

– The attacker found a combination of operations that made it possible to distort the state of one of the Solana liquidity pools and withdraw around $1.66 million. Two liquidity pools involving USDC and USDT were affected.

It is important to distinguish between the bridge infrastructure and the pools themselves. User wallets, private keys, and cross-chain routes were not compromised. The issue affected only the exchange mechanism operating through the liquidity pools.

The hacker used a flash loan, executed the entire sequence of actions in a single atomic transaction, repaid the loan, and kept the difference. The attacker needed virtually no capital of their own.

After detecting the attack, we quickly suspended the affected functions, restored secure routes, launched an investigation with our partners, and managed to trace most of the stolen funds.

However, the main conclusion was strategic. Over the past several years, the industry has gradually been moving away from bridges with their own liquidity pools toward native solutions such as CCTP, OFT, and other cross-chain messaging protocols. We had already been moving in this direction, and the incident ultimately confirmed that this was the right choice. Allbridge is now gradually abandoning pool-based architecture and focusing on these technologies.

– As AI develops, hacking attacks are becoming increasingly sophisticated: criminals use deepfakes, automated vulnerability detection, and social engineering. How can crypto projects address these threats?

– AI strengthens not only attackers but also defenders. It is already possible to automate the search for potential vulnerabilities, generate convincing phishing messages, and use deepfakes in social engineering.

However, most of the largest hacks in the crypto industry still happen not because of artificial intelligence, but because of flaws in architecture, smart contract logic, or internal processes.

The main answer therefore remains the same. Systems must be designed so that even a successful attack has limited consequences. The principle of minimal trust, independent audits, bug bounty programs, continuous monitoring, and the ability to isolate a problem quickly remain far more important than any fashionable tool.

AI is becoming another instrument in this race, but it does not change the rules.

Why users do not notice crypto bridges

– In simple terms, how do cross-chain bridges work? Who uses them most often: companies, traders, or ordinary crypto holders? Which assets are transferred through them most frequently?

– The simplest analogy is an international bank transfer.

You have money in one country, but you need it in another. A bridge does roughly the same thing, only between blockchains.

For example, a user has USDC on Ethereum but needs to make a payment on Solana. Instead of selling the asset, withdrawing it to an exchange, and completing several intermediate operations, a bridge makes it possible to do this in almost a single transaction.

Today, bridges are used by far more than just traders. Their users include DeFi protocols, payment services, corporate treasuries, market makers, crypto wallets, and ordinary users. Many people do not even realize they are using crypto bridges. For them, it is simply a “Send” button. The entire cross-chain route is already executed automatically inside the application. Stablecoins currently account for most of the volume.

– How much demand is there for crypto bridges? Have they already become core crypto market infrastructure, or are they still a relatively niche product?

– If you look only at bridge websites, the market may appear fairly niche. But from a broader perspective, cross-chain transfers have already become core infrastructure.

There are many blockchains, and each of them serves its own purpose. Users do not want to think about where exactly their assets are located. They simply want to send money. I believe that in a few years, the word “bridge” itself will become less visible. Just as no one thinks about which protocols power the internet today, moving assets between networks will become a standard infrastructure function.

Regulation will divide the stablecoin market

– The crypto industry is gradually moving into a regulated environment. Some companies are actively obtaining licenses and adapting to new requirements, as in the case of USDC, while others are trying to preserve a more decentralized model, such as USDT. Which direction are Allbridge and the broader cross-chain bridge market taking?

– We have always built infrastructure, so it is important for us to support the ecosystem regardless of which asset a user chooses. At the same time, it is clear that regulation is gradually becoming part of the market. Large companies, banks, and institutional players simply will not be able to operate without clear rules.

I do not think there will be a single winner in the future. The market is more likely to become increasingly segmented. Fully regulated stablecoins will be used in some areas, while less regulated solutions will remain in others. Infrastructure must be able to support both scenarios.

– What do you think about European regulation under MiCA and U.S. legislative initiatives, including the GENIUS Act? Which regulatory model seems more effective for the development of the crypto industry? Will Europe and the United States remain attractive to crypto companies, or will businesses relocate to Dubai and other more crypto-friendly jurisdictions?

– Europe traditionally starts with regulation and control. The United States is more likely to preserve room for innovation and competition. In my view, the ideal model lies somewhere in between. Regulation should protect users without killing new technologies before they have had a chance to emerge.

Competition between jurisdictions will continue. Dubai, Singapore, and Hong Kong will actively compete for crypto businesses. However, Europe and the United States are not going anywhere. They are simply too large and have too much capital.

What DeFi needs to become

– Cross-chain bridges are an important part of DeFi. How do you assess the current state of this sector? Has the industry managed to realize the original idea of decentralized finance?

– I believe the industry has become much more mature. Several years ago, it seemed that DeFi would replace traditional finance very quickly. The technology has indeed proven its viability. Billions of dollars now flow through DeFi, while lending markets, decentralized exchanges, stablecoins, and many other services are already operating.

However, ordinary users still face overly complex interfaces, too many networks, and demanding security requirements.

The next stage of DeFi development is to make sure users no longer have to think about blockchains at all, just as no one today thinks about the protocols operating inside the internet.

– Many analysts describe stablecoins, prediction markets, and tokenization as the main areas of crypto industry growth in the coming years. Do you agree with this list? Which trend would you add or remove?

– I agree that stablecoins and tokenization will remain among the main drivers. Prediction markets are also interesting, although for now they are still more of a separate niche. If I had to add one trend, I would name stablecoin infrastructure.

When people discuss stablecoins, they usually focus on the assets themselves. But behind them lies an enormous layer of technology: cross-border payments, corporate settlements, liquidity management, automated blockchain selection, and messaging between networks. This infrastructure is developing very quickly.

What could push Bitcoin to $200,000

– Infrastructure is certainly important, but the attention of most crypto market participants remains focused on Bitcoin. Geopolitical tensions, trade conflicts, and macroeconomic uncertainty continue to affect its price. How realistic are forecasts that Bitcoin could rise to $200,000 or higher? What would need to change in the market and the global economy for such levels to become achievable?

– Such a scenario is entirely possible, but I would not tie it to a specific figure or timeframe.

Bitcoin’s price depends not only on the crypto industry itself. Interest rates, global liquidity, central bank policy, institutional demand, and the state of the global economy all play a major role.

If capital continues to flow through ETFs, institutional adoption continues, and no major macroeconomic shocks occur, new all-time highs look entirely realistic.

However, the price itself is not the most important factor. What is far more interesting is that Bitcoin is gradually evolving from a speculative asset into a fully fledged part of the global financial system.