Will Crypto Frauds Rise in 2021?
2020 certainly was the year of decentralized finance (DeFi). Driven by sudden yet growing interest by the public and striking breakthroughs by projects, DeFi protocols accelerated the crypto market while utilizing the blockchain landscape. 2020 was also a dangerous year for the crypto investors as decentralized finance (DeFi) companies accounted for 21% of the total theft volume in 2020. The 21% is a steep number considering the fact that in 2019 such attacks were virtually negligible.
So what does 2021 look for the DeFi market and its potential users?
2021 is going to be even more challenging according to the cybersecurity firm Kaspersky.The firm has further warned an increase of Bitcoin thefts in 2021 due to the growing demand. It is said that it was the pandemic that led to the sudden interest in the cryptoworld as many economies and real world currencies plummeted during the lockdown. The gradual decline of traditional currencies and centralized finances is what drew the people to DeFi. The adaptation of DeFI is expected to increase with the advantages that the technology has to offer (High liquidity, removal of intermediaries and decentralized ledgers) and this is why experts are warning on expecting the hacks on DeFI to increase.
Prevention is better than cure. The crypto sector badly needs risk transfer solutions, including traditional insurance, and this goes beyond protection from hackers and thieves. It is no secret that the crypto world suffers from continued price volatility and that users could benefit from some protection against market gyrations — whether through traditional insurance carriers or by other means. Polkacover understands the threats that crypto users are exposed to in the DeFi market and the gaps in the crypto system.
And that is why the team of industrial experts are creating a platform with insurance products that will help the users to transact safely.
Read our whitepaper on our website and learn more on how we’re changing the insurance industry for our crypto users
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