Crypto insurance: £1.5M pocketed by Unslashed Finance to expand operations
Crypto asset insurance is a fast-growing space. Recently, the major insurance broker Aon announced a pilot that looks at risks associated with the booming decentralised finance (DeFi) sector.
Gets £1.5M funding
Now, London-based crypto insurance startup Unslashed Finance grabbed $2 million (nearly £1.5 million) from investors including Lemniscap, P2P Capital, Bitscale Capital, and Chainlayer. Several angel investors including Enzyme founder Mona El Isa, founder of Kyber Loi Luu, founder of Deversefi Will Harborne and founder of Argent Itamar Lesuisse also took part in the round.
Unslashed Finance intends to use the funds to continue to expand operations and its business reach.
“We at Unslashed believe insurance is the key factor to sustain and accelerate crypto adoption,” said, Marouane Hajji, Founder of Unslashed. “With the launch of our project, we strive to power the growth of the crypto economy and protect its participants from significant risks. We’ve been fortunate to partner with investors who deeply understand both the traditional finance industry and crypto.”
Idea behind Unslashed
As per reports, around $500 million worth of crypto was stolen through DeFi exploits or exchange and smart contract hacks. The traditional insurance firms have failed to cover users against these risks. This paved the way for Unslashed Finance. To date, the company has sold coverage of over $400 million and collected $90 million in capital deposits with no marketing spend. It believes in outpacing a significant number of companies in the insurtech industry by the end of the year with such figures.
Decentralised insurance protocol
Unslashed uses a decentralised insurance protocol, which enables almost instant liquidity to insurance buyers and risk underwriters. By tokenising coverage and using “money streaming,” this protocol allows the insured the ability to pay as they go and instantly cancel the policy to offload it.
Its wide range of clientele includes decentralised exchange aggregator ParaSwap, infrastructure provider and validator for Ethereum Lido Finance, Ethereum-based protocol for decentralised on-chain asset management Enzyme, and crypto hedge funds, including Techemy Capital.