Dear CoverCompared community,
Since our founding in August 2020, we’ve strived to provide a seamless insurance marketplace where users could buy Smart Contract Covers, CEX Covers, Wallet Hacks, Life, Health, Travel, and Electronics, etc. using cryptocurrencies.
The journey has been one of growth, innovation, and collaboration. Today, we must share the difficult decision to cease operations.
CoverCompared’s journey over the years:
Founded in August 2020, CoverCompared embarked on a mission to provide insurance products for cryptocurrencies and provides users a new option to purchase insurance protections through third party vendors and launching our mainnet in 2021 to offering the first aggregated issuance service in the crypto space, we built a bridge between the traditional and crypto worlds.
- Release of a Dapp demo on April 13th, 2021.
- Launch of the mainnet in 2021.
First provider to distribute Medical Second Opinion insurance products that were made accessible to crypto holders for the first time.
- The first aggregated insurance provider using traditional insurance providers for policy underwriting.
- Met with over 200 insurance partners and shared our sector research on blockchain technology and the use cases of blockchain in insurance
- Providing Coverage of impermanent loss coverage on NFTs by third party providers.
- Smartcontract covering 10+ chains by 4 providers.
- MOUs with 3 leading multinational insurers and working towards launching crypto-centric products with them
- Building in Gasless transactions for scale.
- Rebranding from Polkacover to CoverCompared, with the intention to shift our brand to a global insurance marketplace
- Launching v2 of our app.
- Building third party API services for insurance partners to be able to onboard crypto users against insurance policies
Notwithstanding these achievements and the aspirations and passion of the CoverCompared team, we regret to announce that the Covercompared will cease operations as of 30 September 2023 as we have run out of funding to sustain development and operations.
The Decision to Cease Operations:
Funding has been depleted for the following reasons :
- We initially planned a runway for 18 months with the intention to achieve our expected breakeven point by then.
- Monthly Development costs kept exceeding the revenues being generated.
- Development cycles took longer than anticipated as we were working with several third party providers on whom we were dependent on to launch products.
- We had avoided any token liquidations during the bull run of 2020 to be able to reduce token emission and did not want to depend on the supply during the bearish years.
- Whilst the team took measures to conserve and stretch the diminished funding resources and remained at all times, there has been no such recovery during the Development Period.
- Lack of required Adoption of our insurance offerings. Although we launched several products in 2020 and thereafter actively promoted such products, mass adoption never did occur.
We are disappointed that the team was unable to achieve all that the team had aspired towards. But with the lack of needed revenue and no other significant growth forthcoming, we have had to come to the decision of closure.
With this, we thank all our CVR token holders and insurance partners who had shared in and supported our aspirations for CoverCompared. CVR tokens will begin the delisting process from all exchanges and all remaining 17 million+ CVR tokens in our reserve have been burned. Please find the transaction hash below.
Although we are able to lead CoverCompared only so far and its development journey ends here with us, if anyone — whether within the CVR community or otherwise and with the necessary funding support — be interested to take on the mantle of leading and continuing the CVR initiative beyond closure, please do reach out to us to discuss.
Tomorrow, we would open source all our code on our github repos for the community and for anyone who would like further its development.
The CoverCompared Team