Cryptocurrency insurance

In june of 2021 crypto staking firm stakehound accused crypto custodian fireblocks of allegedly mishandling backups of its private keys. In the lawsuit, stakehound alleges that the mishandling has led to the loss of over $75 million worth of eth. These funds are forever locked on the corresponding public address with no way to access them.

One year ago, the combined value of crypto assets was roughly $350 billion. Crypto shield covers the theft of cryptocurrency while in the custody of a qualified custodian. Pitfalls remain for investors when considering insurance for their crypto assets, especially in the fine print.

The 21st century is witnessing the rise of digital assets, and the crypto insurance industry is starting to emerge along with it. Yes, but it's still a nascent industry, and protection is extremely limited. "Most crypto assets are not currently covered by insurance, and that's due to the relative immaturity of the cryptocurrency market," said brian o'connell, an insurance analyst at insurance quotes. Boost insurance empowers any company to engage with their customers and increase sales by offering insurance through their own digital experience.

This model leverages a mathematical construct to generate a key-pair which is then used to transact with the blockchain. The public key (aka “wallet address” in the crypto world) is similar to a bank account number. The private key can be understood as the password to interact with the bank account. The principal difference between cryptocurrency security and standard data security is that in crypto’s case the data is the value. Think about a hacker who has stolen a credit card number versus one who has stolen crypto.

Financial advisers are also looking to get in on the action now that crypto investing has been sufficiently de-risked from a career reputation standpoint. The success of mobile investing apps like crypto.Com also suggests that retail investors remain highly active in the space. In addition to powering the new product, boost and breach partnered to source and secure the necessary reinsurance backing from industry expert relm insurance ltd. (“relm”), fronted by trisura specialty insurance company.

Cryptocurrency insurance
https://cryptocurrencyinsurance.io/

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Pub: 24 Feb 2022 12:48 UTC
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