One aspect of the cryptocurrency market aside volatility, which has been under immense criticisms over years is the hacking of crypto exchanges by cybercriminals. Criminals also want a piece of the crypto action and therefore pounce on any little chance they get to screw over crypto investors.
The crypto market has been plagued with series of hacks, targeting investor’s assets in many exchanges. The biggest and most used crypto exchanges in the market have all been hit with hacks and phishing attacks. More than $1 billion worth of cryptocurrencies have been stolen by criminals from numerous crypto exchanges this year alone, and we are just in the eight months.
Crypto’s amazing rise and the journey have given birth to new trends and now the latest one gaining grounds in the crypto market is Cryptocurrency insurance. The ever growing rate of fraud, theft, and hacks in the crypto world has been the basis pushing this trend further up high, in efforts to try and curb the situation, or better still, save crypto investors from losing all their assets to thieves.
Insurance in the world of finance isn’t something new and it has now arrived in the crypto world to which many companies are getting on board. Offering and taking insurance on cryptocurrency assets might be the sweetest thing crypto investors want to hear at the moment. Who wouldn’t want to protect him or herself from criminals taking away their investments?
Crypto insurance comes with its many importance just as the many come ups in the crypto market. Insurance companies and firms are ready to offer protection against hack and thefts for just little fees. With crypto insurance in place, users with huge amounts of cryptocurrency stored on exchanges might be free of the headache hacking and theft threats provide.
Many crypto investors and firms are poised for business, with the benefit each party stands to enjoy. Many firms have tabled insurance packages covering employee theft, unauthorized access and even day to day mistakes.
Mitsui Sumitomo Insurance’s package even covers in everything, with the packages to offer, beginning at $88,550, up to $8,850,000. Many other firms too are underway with crypto insurance. Chubb, XL Catlin, Mitsui Sumitomo Insurance, Great American Insurance Group and many others.
This emerging trend in the crypto world looks to be welcomed with opened arms even though the industry comes with substantial risks associated with trading. Many companies are already scamming investors and stealing all their money and Insurance companies must begin to solve those problems or might end up offering insurance to scammers. Many trends born off cryptos have flourished and this can be no different.
Source: https://zycrypto.com/cryptocurrency-insurance-on-the-rise/