Nexus Mutual, a mutual decentralized insurance platform, will offer its services to clients of centralized cryptocurrency exchanges.
Previously, the Nexus platform only supported decentralized projects of the DeFi industry, which are often attacked. But centralized exchanges also fall victim to attacks, and insurance services in the cryptocurrency industry are still not very widespread and remain expensive. Nexus encourages users to protect themselves on their own, rather than relying on account insurance offered by cryptocurrency exchanges.
“We are expanding to provide coverage for centralized exchanges, starting with major platforms: Coinbase, Binance, Kraken, Gemini. We have a really big demand for such a service, ”said Nexus Mutual founder Hugh Karp.
The startup Nexus Mutual was launched in 2018 to implement a mutual insurance model in the blockchain industry.
“You don’t have to rely on insurance that the exchange may or may not purchase. You can come to Nexus and get insurance regardless of the exchange, ”Karp said. “Hopefully we can provide the community with a solution to the current limited insurance opportunities in the industry.”
According to Karp, Nexus’ centralized exchange insurance coverage system will reimburse users if the site is compromised and the user loses more than 10% of their money, or if withdrawals are suspended for more than 90 days.
“It is currently very difficult for end users to assess the safeguards that exist on centralized exchanges, such as how much contingency money they hold or how much money is insured on the exchange,” Karp said.
Recall that in December, a hacker hacked into Hugh Karp’s personal wallet and stole 370,000 NXM tokens worth about $ 8.2 million, and then sold 35% of the stolen assets.
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