Protection against hacks and co? Celsius CEO announces self-insurance for crypto-coins

The crypto banking and financial services platform Celsius Network (CEL) plans to insure its users‘ funds against unforeseen losses.

The today their co-founder and CEO Alex Mashinsky on twitter announced

“You asked about it and we listened. We’re going to have a self-insurance plan for all @CelsiusNetwork users that covers all of your coins, it will take a few months, but it will insure coins that are on loan to institutions and exchanges, „Mashinsky tweeted, adding,“ Nobody else has today such an insurance. “

Auto insurance is a risk management method whereby a company or individual chooses not to use third party insurance (which usually charge a premium in excess of the expected loss). For this purpose, a company sets aside a certain pool of funds that would be used in an emergency – and without paying any additional costs.

In the case of Celsius, this means the platform is likely to gradually amass a “rainy day fund” that will be used to cover unexpected losses that could affect its users

However, Mashinsky did not explain what damage would be considered „insured“. While hacking attacks are a prime example of an emergency that should be covered by insurance, there are many other risks associated with cryptocurrencies such as Crypto Engine (See How to Buy Bitcoin ) or Ethereum .

The Celsius Network, launched in 2018, enables its users to receive returns – regular payouts and interest – on their cryptocurrency deposits and various other services such as wallet-style loans and payments.

Aside from being used in a number of internal functions, Celsius ’native token, CEL, can also increase users‘ returns if they pay for something with it.

Over the past 30 days, the CEL price has dropped all the way down to $ 4 from around $ 6 but has since stabilized around $ 5.