Ep 74 - "Where's my Crypto Insurance?" - InsureYourBit

 


Our guest on episode 74 of LAB Radio is InsureYourBit’s founder,
Doug Moeller. Doug is passionate about providing crypto related
insurance to individuals and entities who regularly use uninsured
third party custodians as a regular part of their business. 


Stay in crypto long enough and you will eventually hear of or be
a part of an exchange hack. US based residents who are used to
traditional financial services, like banking, are familiar
depositors insurance. They receive this as part of the banks
agreement with the FDIC. However, the FDIC only insures one kind
of deposit, US dollars. Many US based exchanges have FDIC
insurance for their customers US dollar deposits, but what about
all those crypto deposits?


This is where InsureYourBit comes in. Doug wants to see a world
where users, on exchange platforms, are able to purchase their
own insurance for their digital assets. 
Crypto on an exchange is not insured

Doug's passion for insurance comes from his experience of
platform failure  in the crypto space, but also as a poker
player on Full Tilt Poker. The similarities of this centralized
failure to the crypto exchange failures is eerily synonymous. It
also comes from a deep sense of wanting people to be able to
protect their assets or provide for their loved ones.


The principles of insurance are to protect people and share risk.
Currently, no one offers hot wallet insurance. Exchanges
currently have war chests in case they are hacked. However, Doug
believes the exchanges could better deploy that capital if it
wasn't all tied up in an emergency fund. 
"Insurance is the oldest Coop" - Doug Moeller

In this episode we cover topics like: 


How insurance works

What it takes to launch an Insurance company

Regulatory Frameworks

Smart Contract Insurance

The types of Crypto they plan to cover

Insurance "Need vs. Want"



According to a recent survey by InsureYourBit, "64 % of people
who hold their crypto outside of an exchange would be more likely
to keep it there if there was a crypto insurance product
available."


Lastly, the indemnity to the user will cover the total amount of
crypto losses, let's say Bitcoin in this case.  If a trader
wants to use and insure 10 bitcoins on X platform, once they
start paying their premiums, they are covered in the event of an
exchange hack. 


Hope you Enjoy!


Tweet your favorite quote and tag @CoinStructive @Insurabit and
@DougFMoeller.


 


Further Reading and Resources


Doug Moeller, InsureYourBit Founder & CEO | Twitter |
LinkedIn


InsureYourBit - | Website | Facebook | Twitter