Crypto Insurance - page 3. | Bitcointalksearch.org

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legendary

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

Why do you think we need Crypto Insurance when we have an easy option?
Crypto Insurance will create additional cost. With level of risk involved, no sane insurance company will charge less than 20% of the raised amount as insurance premium. Hence it would unnecessary impact project negatively. Rather than Crypto Insurance, a trusted escrow service is 100% better option. Reputed companies like Binance or Coinbase (don't bash me over this) can escrow all funds raise in ICO and release funds to team after allocation is complete.

Mihaylovic

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

it would be good. but i think this kind of things wont work in crypto ecosystem. because any kind of insurance and guarantee won't work properly considering the importance of anonymouty here.

metalglowd

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So if the case is like this, you could say there is no insurance. All of that includes risk. ICO, Trading any funds related to crypto is definitely at risk because our goal is to get profit.

Ucy

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Any solution that prevents scams is welcomed as long as it's viable .

One of my favorite suggestions on how to prevent scams is to slowly release ICO funds in phases to developers and watching them spend the fund transparently. Once the developers deviate from the Roadmap/whitepaper and standard without sound reasons, the funds are immediately frozen by the community until the developers give satisfactory reasons for the deviation.

goaldigger

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

This is definitely a good idea since ICOs have a very bad image as of now. If this would happen, we would need a third party to hold the insurance fund either its a company, or an escrow. With this, the chances of an ICO to be a scam would be limitted.

yusupjatigumilar

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I think this is very much needed in the world of crypto investment, many investors are afraid to invest in the ICO because they are afraid of being deceived by the projects they follow, if there is insurance that can guarantee the security of investing in the ICO maybe more investors will invest in in crypto.But to create the HL I think there must be strong regulation first from the government.

MadeinCoin

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Quote from: marcbitcoins on June 27, 2019, 10:01:31 PM

Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

No company will ever initiate this kind of insurance business because it is hard to tell if an certain ICO is a legit or not except if the insurance fees are big then maybe they will engage to this kind of business as they will double their effort to ensure that the project is not a scam. We do not know also if we are ready to pay for our insurance expensive cost as we certainly do not know the future of every ICO if they will be a success or not.

true, no company would want to insure one's investment. It is like bearing the loss of one's investment, moreover many projects fail, of course if there is indeed a company it will bear a huge burden.
It is better if you are not ready to invest, do not invest, if you invest, you must definitely bear all the risks, because the decision is in yourself.

dothebeats

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Due to the heightened risk of ICOs ending up as scams and just money grabs, I don't think insurance companies would even dare enter this market full of shitholes and scammers knowing that they're always betting against the wrong side of the coin. Also, even with the amount of regulations imposed for ICOs, I don't think people will view it differently ever again, knowing that only a few percent of those ICOs actually turned out to be legitimate. We know how insurance companies operate, and of course they wouldn't enter a market wherein they wouldn't gain shit.

nerlial

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What you offer will not do in a decentralized market. Too many costs and incomprehensible perspective for the future when the ICO is not so popular.

palle11

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

So if ever they want to scam people, people are secured.

Insurance is a serious and legal business backed by the laws of a land to guarantee safety of people's property and investment. Therefore, it is nice for that to happen but it is not yet time because crypto has to be classified as a secured area of investment. So an insurance running can't allow for scam. No point therefore to say that the issue of scam can arise.

Kemarit

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Quote from: michellee on June 28, 2019, 05:34:58 AM

Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

I think we already have seen the insurance from the exchanges which launch IEO because not all exchanges will launch the project. The exchanges itself needs to be selective to launch the project because it will be related to the exchanges reputations. If the exchanges could launch the good projects, it will give the exchanges a good name, and I think that will attract more member to join with them.

And that is why ICO are totally dead right now, while IEO is thriving at the sideline. It is administered by a crypto exchanges, mostly reputable ones. And maybe we can call this a insurance per se, because reputable exchanges won't simply accepts or willing to conduct a IEO in their platform if the project itself is somewhat shady.

And as other have said, who will be in-charge of all of this? There are no single authoritative body that oversee all incoming ICO's, so I don't think this is feasible.

michellee

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

I think we already have seen the insurance from the exchanges which launch IEO because not all exchanges will launch the project. The exchanges itself needs to be selective to launch the project because it will be related to the exchanges reputations. If the exchanges could launch the good projects, it will give the exchanges a good name, and I think that will attract more member to join with them.

amrulshare

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implementing insurance in the Iico project will not be as easy as one might imagine, for example in the real world there are several insurance services that use it for personal benefits that can even deceive customers. Most blockchain project investors do not know the true background of the real team, which is the main problem why fraud continues to occur in the ICO scope.

marcbitcoins

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

No company will ever initiate this kind of insurance business because it is hard to tell if an certain ICO is a legit or not except if the insurance fees are big then maybe they will engage to this kind of business as they will double their effort to ensure that the project is not a scam. We do not know also if we are ready to pay for our insurance expensive cost as we certainly do not know the future of every ICO if they will be a success or not.

AjithBtc

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This can't be achieved, as an user stated, the market is unregulated then who'll be the one to make everything planned and executed. The suggestion from Op is really a good one, but in reality a hard task to get it implemented. The funds can be secured on some escrow who is a trusted person or a team into the same service. If the project gets to be a scam, the funds can be released to the investors.

timerland

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

Firstly, who will be the enforcer of this "compulsory insurance"? The SEC? Or some other regulatory body? The thing is that, even if you have an enforcer, you can't expect every single initial offering to be registered with them, let alone comply with their rules.

Secondly, why would an initial offering bother to try to raise funds, if they are already able to afford an insurance bill that will probably cost a lot, if they are insuring every single investor that is projected to invest?

And lastly, who will be the insurer? Why would anyone be willing to insure such a risky event, especially when it comes to someone over the internet that you have had no previous knowledge about? Nobody wants to take on the risk, and the verification process will simply be way too hard.

It's simply unfeasible overall.

thehun

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There is no such thing as a "safe investment". If any insurance company were to take such a risk, the premium they would charge would make this option absolutely uninteresting.

What they could do is put down some kind of collateral (a property, shares of a reputable company, etc.) as a guarantee that they won't be scamming anyone.

peter0425

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Quote from: Muzika on June 27, 2019, 09:09:17 AM

What are your thoughts about having a compulsory insurance when someone wants to do some ICO so that investors are safe and the participants are also safe? So if ever they want to scam people, people are secured.

It is a good idea, but who will be the authority to handle those? You mean the project themselves will find a compulsory insurance to handle such thing? I doubt that they will go on that route. Again it boils down to decentralisation, with no third party in between. Perhaps a good regulatory framework is needed, or change the business model of ICO, just saying.

horrifiedx1

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still confused with the insurance on ico. Will the insurance research ico first? while there are still many governments that have not legalized it, while insurance certainly has a legitimate administration under state institutions. I think insurance is good, but it can't be implemented yet

Theb

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Ever heard the lines “buy at your own risk” or “trade at your own risk”? Well in the world of investment there is no such thing as "compulsory insurance” because we are already warned before buying. Them being an investment vehicle doesn't assure you that their price will be going up they don't dictate where it will go. For scams or fake projects in the other hand the closest thing we can ever get for “insurance” is them being punished by law and a lot of people are already put in justice with this kinds of frauds in the industry.

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