In its attempt to make cryptocurrencies less risky, the Cardiff-based cryptocurrency insurance startup Coincover has launched cryptocurrency insurance and a 24/7 Bitcoin-monitoring service, which is an insurance policy covering theft and loss of cryptocurrencies.
This is reported to be the first and only service to guarantee digital funds held online would not be lost or stolen. Coincover’s service reportedly monitors the wallet at all times and issues warnings in case of suspected theft, recovers funds in case of private key loss, manages key backups, provides cash replacement value in case of theft, and checks for any suspicious activity.
The startup, which specializes in digital asset insurance, will also cover over 100 different crypto assets; furthermore, the company has been invited by the UK’s Department for International Trade as one of the eleven insurance technology companies to share expertise in the Silicon Valley market.
Coincover’s initiative in this regard is of great significance as one of the first hurdles when approaching the world of cryptocurrencies is certainly the fear of theft or loss of assets. In fact, over the past 10 years, there have been several stories of hacks or loss of funds due to inaccessible “keys” that have been lost, corrupted or just forgotten.
So far, one of the solutions to this problem has been the cold storage provided by hardware wallets which allow crypto to be stored offline. However, this tool lacks flexibility and speed when it comes to making transactions, without considering the human error for password management.
The online alternative from Coincover allows one to secure one’s own cryptocurrencies, even if stored online, through a reliable, user-friendly service. Coincover services are available for 100 different cryptocurrencies for a maximum amount of $100,000 dollars – for larger amounts, one must contact them directly.
The firm guarantees a 24/7 monitor service with notifications in case of suspected theft or any other suspicious activity. Other services include recovery of funds in case of private key loss, management of key backups, and cash replacement value in case of theft. The cost of the service amounts to a monthly fee of 0.2% of the amount deposited.
“Cryptocurrency ownership is growing fast and becoming more mainstream, but it can still feel like a risky investment. Virtual currencies, by their very nature, are a new concept for many,” Coincover co-founder David Janczewski commented on the development. He also notes that cryptocurrencies have been linked to crime and scandal since the very start. These are the issues his company is trying to solve, he explained.
According to industry experts, the cryptocurrency insurance market is expected to grow at a faster rate if United States regulators provide more regulatory clarity.
Meanwhile, cryptocurrency insurance is becoming a more prevalent service in the industry, namely for custodial services. For instance, earlier this month Bitcoin (BTC) futures firm Bakkt announced that deposits held in its warehouse are protected by a $125 million insurance policy.