Crypto insurance is still a service that’s relatively unexplored. You may have heard little to nothing about the sector, because there hasn’t quite been a brand pioneering the service and helping customers at a large scale… yet.
With that being said, it continues to be more & more important, with crypto scams running rampant in the market as 2022 market the highest amount in crypto scam losses (roughly $1.7 billion)
So, why are crypto insurance services still leaving so much to be desired?
#1 - High Risk, No Reward
With figures in crypto being so incredibly high, especially for B2B brands, the risk that any insurance companies would need to take are massive - and much more than traditional risk from normal car insurance or travel insurance businesses.
#2 - No Options In The Market
Because of the above reason, as well as many others we’ll mention, options for crypto insurance in the market are very few and far between. Not only are there low options, but the available options have a few fatal flaws…
#3 - Not Your Keys, Not Your Crypto
Many crypto insurance firms will require you to give them your private keys. You might think is normal procedure, in fact, it’s not. Whoever has your private keys, essentially has full control over your crypto. Brands asking for your private keys can be considered scammers, and shouldn’t be trusted.
#4 - Incorrect Product-Market Fit
Another glaring reason showing how many of these crypto insurance brands are still in their infancy, is the fact that their service just doesn’t solve the right problems. They advertise more of a traditional insurance concept with crypto features spray painted on, rather than a native crypto insurance service built with a true understanding of the market. CryptoLock is built with a crypto-first approach - thanks to a team of web3 professionals that have been working in crypto since it’s inception.
#5 - All About Marketing
Another problem, is that many crypto insurance brands are simply jumping on the bandwagon marketing trend. They know that crypto brands love to use crypto insurance as a marketing & sales tactic - so they quickly throw together a service that appears to check the box in order to get the sale.
#6 - Young Brands, Poor Skillset
Finally, these brands simply lack the capability and skillset required to actually perform the task they’ve set out to do - aka, actually recover funds in the case of a scam or a breach.
Need to protect or recover stolen assets by talking to a reputable brand you can trust? Hop on a free call with us, we can help 👈