Topic: Winklevoss’ Gemini Now Provides Insurance for Customers’ Cryptocurrencies (Read 177 times)

"Gimmick" takes it a bit far.

Insurance is just about lowering risk exposure. Lots of people can afford a monthly premium but wouldn't be able to afford the out-of-pocket expenses in an expensive medical emergency. Or to immediately replace their car if it gets totaled.

Insurance companies either process claims against policies as written, or they fight it out in litigation, which is prohibitively expensive.


Maybe, but whether their rationale holds up in a costly legal battle is another matter entirely.

Traders on Wall street are used to the safety net provided by the stock exchanges and the Winklevoss twins are familiar with

that environment. These fat cats need protection against big losses and they know the SEC will not grant Bitcoin Futures, if

they do not provide that protection. The insurance is the safety net they require to stay on top of the food chain. This is a very

smart move by the twins to satisfy the boys club.  

Good signs in the market. I am glad that the market is evolving, i am an optimistic person but with this news i believe that the future of crypto technology is like a tall mountain waiting to be discovered by the people. All this only means that bitcoin and other altcoin will be more and more popular.

Insurance (doesn't matter what sort) is quite a gimmick to be honest. If there is one thing insurers are out to do, then it is to scoop up your money and reject as many claims as possible.

On top of that, with how much of a gray area crypto in general still is, and especially legally, insurers won't have to put much effort in finding ways to reject claims. People however read an exchange offers insurance so it has to be safe, but that's a false sense of security.

No one probably will, but just for fun, read their TOS to know the actual details of what this insurance policy is about. I'm certain that it's less interesting and less protective than most people here think it is.

I've never heard about Gemini before, but I think that people need such things at least for the time being to be able to see something in between fiat + regulated securities and cryptos + free market. Even if Gemini is about insuring themselves, it still helps people to overcome their fear of new technology and all the scam around it. It is nice that Winklevoss brothers are putting so much effort into bringing cryptos to the world of legit investments. If more influential people did the same, it could really help the market and accelerate the path towards mass adoption.

What do they offer insurance against, it is the price of currency or is it in terms of theft or exchange hacks, glitches etc? I'm sure it'll be a wise choice for some of the more risk averse investors but until there's more competition it's not likely to be great value for people who are more inclined towards risk.

This will give confidence to the gemini users and for sure the competition is going to be tough for other exchanges as well. They are putting more flavor to trading by having this type of insurance and that was explained well by upsidedown. This is what the skeptics are looking for to insure that their funds are safe due to the recent hack attacks to exchanges. Hmm looks like gemini is going to claim the year of 2019 due to this type of service.

They are just insuring the cryptocurrencies you are holding in gemini and that's all. This is not like a general crypto currency insurance, they are not insuring coins you have on your wallet or something, its basically gemini insuring the coins they hold. In reality all the coins their "customers" own is basically owned by them and just labeled his or hers inside the system for whenever you want to cash out and leave.

Which means they are insuring themselves against any hack FOR YOU. However it is great of course, as long as crypto becomes "insurable" thing that would mean a start for all of us, in the end maybe more companies can insure themselves against hacks.

I agree that this is a nice idea coming from Gemini. The Winklevoss twins are really pulling up a lot of stunt so to speak to help crypto get some form of legitimacy so that we can attract a lot of potential investors.

Right now, we have struggled a lot, but at least we see some developments here and there that will make the market more lively again in the next couple of years.

I guess the word needs to get out as fast as they can so that we can see if it can bring a lot of attitude from investors who chooses to stay away because of the bear season.

This is very positive trend. Many people consider Crypto market as some sort of Wild West without any laws or regulations, and they`re not entirely wrong.
Introducing insurance is the first and most important step, I hope this trend will spread across the whole market soon. This is bound to bring more investors, especially ones that were afraid of scam projects.

With this kind of thing they are currently bringing this to a new different level and for this I am sure that many investor will likely to invest more on cryptocurrency.

This is good and I believe this is going to help investors.  Many exchange go with people money because the exchange is not insured and when there run into problems either by hacking or scamming the investors are the one bearing the loss.  Insurance will bring confident into the market and I think we should be happy for this development.

Winklevoss’ Gemini Now Provides Insurance for Customers’ Cryptocurrencies

Gemini announced during the week in a press release that the exchange has partnered with leading insurers to provide coverage on custodial digital assets.

Effective since October 1, 2018, insurance coverage is provided on digital assets held in Gemini’s custodial service. Aon, a leading global professional services firm providing a broad range of risk, retirement and health solution, has arranged the partnerships “through a global consortium of industry-leading insurers.”

Yusuf Hussain, Gemini’s Head of Risk, stated:

Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions. Educating our insurers not only allows us to provide such protections to our customers, but it also sets the expectation for consumer protection across the crypto industry.

Gemini has generated a lot of attention recently with the launch of new products and services. As CCN reported, the company launched a new stablecoin (GUSD) touted as more transparent and auditable than current coins. Additionally, the Gemini’s Winklevoss twins are very active in bringing cryptocurrencies to Nasdaq and educating Wall Street.

A Record for Adding Legitimacy to Cryptocurrencies
The new addition of insurance-backed custodianship marks a clear trend that Gemini focuses on adding services that legitimize the cryptocurrency trading industry. Most of Gemini’s developments bring features that are consistent with traditional financial institutions.

While the security behind cryptocurrency custodianship has firmed up greatly, such as multi-signature features, exchanges still want to firm up doubt with insurance for digital assets still highly sought after when exchange hacks are regular news. And as CCN reported, insurance firms could win big, and some are launching with specific cryptocurrency packages.
https://www.ccn.com/winklevoss-gemini-now-provides-insurance-for-customers-cryptocurrencies/