The last decade has witnessed the emergence of cryptocurrencies as a token of exchange, and different governments are gradually accepting major crypto like Bitcoin as an official medium of payment. For instance, El Salvador recently passed a legislation that officially claimed Bitcoin as a form of national legal tender. Similarly, many other Latin American countries are very close to doing the same. While the surge of cryptocurrency has truly changed the landscape of currencies and payments, certain major scandals have tarnished the industry’s success.
Rising frauds of cryptocurrency
The rising popularity of using virtual currencies has been accompanied by some of the most colossal cybercrimes in history, where hackers and fraudsters have stolen billions of dollars from cryptocurrency companies. Earlier this year, the crypto space witnessed one of the largest ever cyber hacks against Poly Network, a decentralized finance platform from where hackers stole in excess of 600 million USD. Similarly, Coincheck were hacked for 523 million NEM coins in 2018. Other major thefts occurred at BitFinex, NiceHash and most notably Mt.Gox, where hackers had drained Bitcoin worth 487 million USD across a few years.
While cybercrimes largely stem from security breaches, it is imperative for companies to investigate further and identify the roots of these hacks to adapt future strategies and take corrective action. Most frauds against crypto companies result from social engineering malpractice, where hackers gain unauthorized access to sensitive data, wallets or accounts. Such techniques include phishing, baiting, quid pro quo attacks, pretexting, and tailgating. Blockchain projects are increasingly becoming the target of attacks by intruders due to high investments and gaps in national legislation.
Apart from hacks, another cause of concern for investors is the extreme volatility inherent to the cryptocurrency market. This volatility is often intimidating to many small and medium companies and hence threatens widespread acceptance. Currencies need to be stable and reliable to earn trust and be widely used.
The insurance void in cryptocurrency
Despite the exponential growth experienced, the cryptocurrency market’s potential has largely been neglected by traditional insurers due to the lack of research, expertise, and insurance statistics within the crypto space. This neglect has transformed into a gaping void within the crypto-insurance sector as users are left with very few insurance options for crypto products.
It has also resulted in an unfair practice where users who want to secure their crypto assets are not given the same options or financial support as fiat currency holders supported by centralized bodies.
Further, the crypto ecosystem is highly expeditious as more than 4,000 cryptocurrencies are being transacted every second. The average crypto user faces an unfair disadvantage; he is forced to research and scour the internet himself to find a product that fits their insurance needs, is within the budget, and offers coverage to the assets they hold.
Cover Compared fills this void!
There is hence a clear void in the cryptocurrency insurance industry. However, there are still several cyber security threats that investors may want to insure against.
Cover Compared, powered by Polkacover, addresses this gap in crypto insurance and offers people a one of a kind solution to protecting their cryptocurrency. We conduct extensive research to provide the most viable, economical and convenient way for people to find an insurance policy of their preference. Cover Compared is essentially a marketplace for different insurance policies. What makes us unique however is that we not only offer traditional policies for life, health and travel, but also insurance protection for cryptocurrency investments. Further, we heavily focus on optimizing our users’ experience and have implemented a design structure that enables users to compare multiple policies with one another simultaneously. The distinctiveness of Cover Compared doesn’t stop here. Our most unique offering is that we are the first ever marketplace to allow our users to purchase insurance policies through cryptocurrencies.
Cover Compared = the future of cryptocurrency insurance
In an era where digitalization is peaking in every regard and cryptocurrencies are gradually becoming more established in the global landscape of currencies, the need for added security on investments is more than ever. Cover Compared is the way forward. We build a bridge between the actual and virtual world and create a secure gateway for insurance protocols in the cryptocurrency realm. We are confident that our services optimize user experience and our solutions maximize user experience. Cover Compared will continue to experience sustainable growth as a pioneer in the world of cryptocurrency insurance.
PolkaCover is the First DeFi insurance marketplace for the global crypto ecosystem. We aim to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products bought using a host of cryptocurrencies.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life, and travel policies. The platform will include a frictionless insurance marketplace experience that incorporates next-generation blockchain technology and tokenized incentives.