Gemini has decided to implement an in-house insurance solution that will cover any security issues on crypto deposits on their Gemini exchange up to $200 million. This is one of the highest figures in the entire ecosystem.
This kind of initiative represents the maturation of a system that until a few years ago put millions of dollars in the hands of inexperienced teams and startups.
An evolving reality that has seen the loss of millions of dollars, most notably the customers of Mt. Gox, a famous exchange attacked by hackers.
There is no doubt that without these pioneers the market would not have grown to the size it is today. However, as demand, adoption and capitalization increase, there is a need for consumer protection tools that can reassure the less daring.
Announced Thursday, the new “captive” will be used to protect the deposit of cryptocurrencies inside the cold wallets from information theft of private keys, which are required to unlock the funds.
The insurance will also protect against natural disasters that could damage or render the seeds inaccessible.
The name will be Nakamoto, in honour of the now mythical Satoshi and, at the legal level, it will be based in Bermuda where regulation seems to be best suited to the management of the insurance fund.
Yusuf Hussain, risk manager for the Gemini company, said:
“The largest limit of insurance coverage currently available by any crypto custodian in the world”.
It is worth noting that Coinbase also announced a $255 million deposit-safe fund, as well as Binance with its well-known Secure Asset Fund for Users (SAFU). The latter was created by setting aside 10% of the exchange’s commission income and was used to support the losses of a hacker attack in 2019.
The Winklevoss brothers in St. Moritz
Cameron and Tyler Winklevoss are bullish on bitcoin and during the Crypto Finance Conference in St Moritz a few days ago they said that they believe the halving will be positive for the price.
According to the report by Forbes commentator Billy Bambrough, the two brothers made important statements at the Crypto Finance Conference in St. Moritz. Here are the key points of their speech and words during the conference:
- The halving of May 2020 will be important for bitcoin, its scarcity drives up the price;
- The word Crypto increases in frequency and regulators are increasingly nervous;
- Their exchange is in the process of being regulated and present in England and Europe;
- Bitcoin will replace gold as a safe haven;
- Collectors’ items and art will be certified on the blockchain;
- The challenge of cryptocurrencies is to build confidence and attract new capital;
- China is working to create its stablecoin and it will be the first time in the world of finance that the US will not be the first to move.
To the interesting question about Craig Wright and his patents, the W. brothers answered:
“We don’t need to worry too much about that kind of thing. Patent offices are set up to stifle innovation”.
“The best companies weren’t built on patents. Google wasn’t built on patents”.