A new partnership between Switzerland and Russia-based initial coin offering (ICO) rating agency, DigRate and Russia’s Central Insurance Company was announced on Wednesday. The two firms aim to provide insurance for private investments in ICOs that have received an A1 or A2 rating by DigRate. The insurance will provide coverage in the event a token is not listed on exchanges as indicated by the ICO roadmap or if the value of the investment is negative beyond a contractually agreed-upon date.
The highest rated projects, A1, are expected to cost approximately three percent of the total invested amount to insure, while projects rated A2 will be insured at a cost of approximately 4.5 percent of the total initial investment. Insurance policies will be limited to USD 20 million per project.
Founder of the DigRate agency Arseny Poyarkov said, in a statement, “The ICO market amounted to over USD 6 billion 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 [forward] 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.”
Availability of the new insurance products is contingent on the Russian government passing draft legislation currently being considered in the State Duma legislative body. Policies will be available to both Russian and foreign nationals, with the latter served via the pre-ICO Crypto Mutual insurance company, according to the statement.
CEO and counselor of Central Insurance Company, Aleksey Kuznetsov said, “Insurance of ICO project investments is an innovation in demand in both Russian and international markets. We are excited to be the first insurance company globally that offers significant investment loss risk mitigation in highly volatile markets”.
To learn more about DigRate, visit https://digrate.com/en/.
- FED Chairman Offers Lukewarm Response On Impact, Utility Of Existing Cryptocurrencies - July 20, 2018
- Boeing Brings In SparkCognition For Help Developing UAV Management Systems - July 19, 2018
- Nervos Network Nets Nearly $30 Million To Build Hybrid Blockchain Platform For Enterprise - July 19, 2018
- Chinese Blockchain Companies Continue To Flourish, If Only In Name - July 18, 2018
- G20 Report Outlines International Collaboration On Standards For Crypto-Assets - July 17, 2018
- Hong Kong Readies Regulator-Backed Trade Finance Platform - July 17, 2018
- RMB to BTC Trading Falls To 1%. Is China Really Out Of The Crypto Game? - July 16, 2018
- Chinese Internet Trends May Spell Trouble For “Disruptive” Crypto Payments - July 13, 2018
- LINE Plans July Cryptocurrency Exchange Launch - July 3, 2018
- McAfee Labs Report 6x Increase in Crypto Mining Malware Incidents in Q1 2018 - June 29, 2018
- Facebook Updates Policy To Allow Vetted Crypto Businesses to Advertise, ICOs Still Banned - June 27, 2018
- Following in Vitalik’s Footsteps? Polkadot’s Habermeier Awarded Thiel Fellowship - June 26, 2018
- SingularityNET and Project Shivom Using AI on Genomic Data to Extend Human Life - June 26, 2018
- Microsoft & EY partner for Royalty Distribution in Gaming - June 26, 2018
- ABBC Foundation to Airdrop ABBC Tokens to First 500,000 Wallet Users - June 25, 2018
- Care Records of up to 30 Million UK NHS Patients go on Blockchain - June 25, 2018
- PundiX Signs UTRUST as Liquidity Clearing Provider for Crypto POS Hardware - June 22, 2018
- Blockchain on the Ballot: Indie Party Candidate Joins Texas Senate Race - June 21, 2018
- IONChain Aims to Challenge IOTA on a Chinese Battleground - June 19, 2018
- Takeaways From SEC Director’s Comments on Cryptocurrencies and Securities - June 19, 2018