ICO Project Investment Can be Insured

Digital Rating Agency (DigRate), the first professional digital asset assessment agency, and Central Insurance Company llc (CIC LLC) sign a cooperation deal to insure private investments in the Initial Coin Offering (ICO). The product is anticipated to the first ever insurance package for those looking to invest in crypto-projects.

Project investments rated with the highest A1 and A2 by DigRate will be eligible for insurance. It is assumed that A1 rated projects will have its insurance coverage priced at about 3% of the investment amount, and 4,5% for A2. Should the tokens fail to be listed or come cheaper versus the investment by its contractual date, the investor will have the right to receive a full reimbursement by the insurance company.

The total limit of insurance policies per project is assumed at $20 million.

Thus, the ICO project investors will get an opportunity to hedge their risks through insurance. Additional protection for major investors will also be provided by the largest international reinsurers, such as Munich Re, Hannover Re and Swiss Re.

The new insurance product for the ICO project investors will become available as soon as the Russian Government adopts the crypto currency regulation, which is now on the table in the State Duma. The program is offered for both Russian and foreign nationals – the latter can join the program via Crypto Mutual, the mutual crypto community insurance company (http://bsure.pro/).

Arseny Poyarkov, founder of the DigRate agency:  “The ICO market amounted to over $6 bn in volume in 2017. We see the market warrants a product to enable investors to insure their money. One of the warranties as of today is the rating of a given ICO project, assigned by an agency. Yet, insurance is a prerequisite for risk hedging. We are confident that the ICO investment insurance program is a step in establishing a robust financial infrastructure for the crypto environment, where ratings will serve as a key indicator to determine access to various financial instruments”.

Aleksey Kuznetsov, CEO’s counselor of Central Insurance Company llc: “Insurance of the ICO project investments is an innovation to be in demand in both Russian and international markets. We see it as we speak, as our customers call for such programs, and we are excited to be the first insurance company globally that offers significant investment loss risk mitigation in highly volatile markets”.