Digital asset insurance is something that will have to evolve if globalist governments wish to replace cash with digital tokens, or crypto currencies in general. Also, the dream of rolling out digital ID for all citizens and increasingly using data scores to decide who gets to travel, work, eat meat or live in a particular city or zone, requires digital payments that are secure – and linked to social credit scores. Without confidence in crypto coins, exchanges, vaults or digital money in general, people may be tempted to try other means of payment, or stick with old school cash.
So here’s some news from Evertas, who are leading the way on creating new insurance lines on digital assets;
Evertas, the world’s first and only dedicated digital asset insurance company, announced a dramatic expansion of coverage limits across multiple policy types last week. – nearly tripling the amount of risk transfer previously available to blockchain focused projects. Evertas CEO J. Gdanski says this expanded capacity will advance the Web3 ecosystem by helping close the enormous digital asset insurance gap, which has long been an impediment to technological advancement in the space.
“Currently, less than one percent of digital assets are protected by insurance, leaving the industry dangerously exposed and impeding innovation,” Gdanski said. “This shortfall is a consequence of multiple deficiencies in the status quo, many of which Evertas has just solved. This dramatic increase in capacity is an unmistakable indication that the crypto space is both maturing and heading in the right direction.”
In December, Evertas treated the Web3 world, still reeling from news of the failure of FTX, to a welcomed bit of optimism with the announcement of a successful venture financing round, some of the proceeds of which the company expected to use to facilitate this significant capacity expansion. Per-policy coverage limits on custodial cryptoassets are now $420 million while limits on crypto mining hardware – a new product offering – are $200 million. These are the highest limits available.
“On a practical level, this expansion in capacity confers two key advantages to crypto innovators. First, they’ll benefit from greatly increased speed and simplicity as it’s now possible to get a full, high-limit underwriting from a single source,” said Evertas President Raymond Zenkich. “And second, they will benefit from much-needed scalability, as policy size can expand along with the needs of growing ventures without requiring additional underwritings.”
Raymond Zenkich, president of Evertas, offered further insights on the move;
We started Evertas six years ago, recognizing there was a massive gap in insurance infrastructure for this new, emerging industry. That was the problem we set out to solve. Here we are six years later and our hard work has paid off. The cryptocurrency space now has true, enterprise class insurance. Large crypto exchanges needing hundreds of millions of dollars in coverage can now get it and this is vital for three reasons.
First, it’ll allow large financial institutions to enter the space and that is key to driving mass adoption. Second, it will attract more venture capital since these investors will feel more confident about the long-term prospects of the platforms they invest in. And third, it will inspire more innovators to build interesting new offerings.
These are the reasons having real, enterprise class insurance is so important to high growth sectors and a strong signal that crypto is here to stay. So, the big take away is that having a large amount of insurance capacity available is a big sign that crypto is moving in the right direction and has a bright future.