The Need for Crypto Insurance

With the cryptocurrency market maturing, cutting edge insurance is key to anyone who wants to trade and hold cryptocurrencies. The increasing demand for cryptocurrency and crypto related thefts go hand-in-hand. In the last 2 years alone, there have been massive exit scams in the crypto ecosystem, including the Ponzi scheme, PlusToken which netted at 2.9 billion USD with its exit scam, holding 64% of 2019’s major crypto crime volume. The latest exit scam was a similar one by WoToken, which ended up defrauding investors out of 1.1 billion USD in its exit scam. Although KuCoin exchange claims to recover 84% of the stolen funds from 2020, the average value of criminal activities in the crypto space had increased by 160% in just a year.

Moreover, the exponentially rising demand in cryptocurrency is creating and shaping the need for insurance in the ecosystem, allowing the community to invest in a more secure space. Buying cryptocurrencies without having insurance for it is one of the biggest risks. With the pandemic changing the world, it has also forced a digital transformation on the majority of the organizations, while also shedding a light on the importance of digital assets. Not only are cryptocurrencies moving rapidly beyond their niche market, traditional banks are also creating and investing in digital asset projects in the forms of DeFi.

Hence, we have come to the conclusion that the cryptocurrency market is here to stay and grow. The ecosystem needs risk and security transfer solutions, beyond protection from hackers and thieves, and PolkaCover understands the threat that crypto users are exposed to. Our platform aims to bring traditional decentralized insurance to the crypto ecosystem, henceforth making crypto transactions and digital assets as secure as possible. Along with our marketplace, we are also working with several projects in the crypto ecosystem to provide tailor made solutions to safeguard the platform.