Insurance in Crypto: How Some Survived the UST Collapse Unscathed

The Crypto Roller Coaster: A Brief Look at UST’s Demise

The recent collapse of UST and LUNA was so dramatic that even Hollywood screenwriters couldn’t dream it up. One moment, UST, an algorithmic stablecoin, was cruising along, nicely pegged to the U.S. dollar, and the next, it was diving headfirst into the deep end of the money pit, landing at mere cents. And while most investors were left holding the bag, a lucky few had their foresight rewarded.

InsurAce: The Unsung Hero of Crypto Insurance

Enter InsurAce, the crypto insurance provider that came to the rescue of 155 savvy investors who had enough foresight to buy insurance against exactly this kind of disaster. While others were left grimacing at their screens, these visionaries claimed their payouts and danced their way to security.

Setting the Stage for Protection

InsurAce’s policy ensured that if UST lost its peg to the dollar, its investors would be reimbursed. And boy, did they need it! The insurance protocol reported that they dished out a staggering $12 million in claims after the crash, with an impressive 98% of those claims getting the green light!

Why the Need for Crypto Insurance?

It’s no surprise that some rival insurance providers stumbled when the time came to pay up. These companies, in some cases, either didn’t cover depegs or had policies that were about as useful as a chocolate teapot. In light of this, InsurAce’s success story serves as a beacon of hope and a stark reminder of why crypto insurance is crucial.

Beyond Just Depegs

InsurAce isn’t just a one-trick pony; they also cover disasters like smart contract hacks and custodian risk. Let’s face it, the wild west of crypto trading can leave even the most seasoned investor feeling like they’re riding a bucking bronco!

A Rapid Response to Chaos

When UST took its nosedive, InsurAce sprang into action faster than a cat on a laser pointer. Within 48 hours post-depeg, claims were being processed, and investors were kept in the loop. The policy was triggered, and payouts were finalized just a month later—talk about efficiency!

Community and Trust at the Core

InsurAce differentiates itself with a community-driven approach. Claims are vetted by a group of claims assessors who hold and stake INSUR tokens. This decentralized governance gives investors a sense of control and reinforces trust in a space often marred by uncertainty.

Conclusion: The Future of Crypto Insurance Looks Bright

Dan Thomson, the Chief Marketing Officer of InsurAce, stated that disasters like UST’s collapse are what inspired the founding of their service. He believes this successful case study is not just a lifeline for those caught in the turmoil but could also propel significant growth in the crypto insurance sector. If the world of crypto has taught us anything, it’s that you can never be too prepared—so grab that insurance policy and ride the waves of digital currency with a bit more peace of mind!