Ever since the mysterious Satoshi Nakamoto introduced Bitcoin and blockchain whitepaper, cryptocurrency took the world by storm. However, an estimated 20 percent of bitcoin, and no one knows how much other altcoins, were lost to theft, human errors, and infrastructure failures. Cardiff-based crypto security startup Coincover aims to tackle such issues. The Welsh firm is building the world’s safety standard for cryptocurrency and has now raised £6.67 million ($9.2 million) in a Series A funding round.
Fresh funds, fresh aspirations
The latest £6.67 million funding for Coincover was led by London’s Element Ventures. Further, DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, Susquehanna Private Equity Investments, LLLP, Volt Capital and the founding investors, Insurtech Gateway Fund and Development Bank of Wales also participated in the round.
The startup will be pouring these fresh funds into its marketing to promote its product offering better. Additionally, in a conversation with UKTN, company’s CEO David Janczewski notes that Coincover will expand its current team of 20 employees ‘significantly’ by the end of 2021.
The funds will also be utilised to deliver new tools and resources, which are said to support the startups’ partners. These tools will help them deal with increased regulatory pressure and maximise the adoption of crypto safety products amongst their customers.
There are few ways to earn crypto, but there are many ways to lose them, as mentioned earlier. To help consumers and its clients stay safe while dealing with cryptocurrency, Coincover is building the “world’s safety standard for cryptocurrency.” The startups’ services are meant to ensure that their users never lose access to their crypto funds due to errors or business or infrastructure failure.
Coincover offers a plug-and-play platform, which is touted to amalgamate a policy underwritten by Lloyd’s of London with technology created by specialists across government, military and law enforcement. This results in startups’ users getting access to secure backup and recovery of private keys with Government-standard security protocols.
Additionally, one gets an insurance-backed guarantee in the event of theft, fraud, user error and business failure. Crypto companies can also embed Coincover’s platform into their offering.
Is the future crypto?
Cryptocurrency is typically stored in digital wallets, which are protected by private keys. Alternatively, one can store them offline in cold wallets, a paper wallet, USB or hard drive. If a cold wallet is lost or an investor forgets their private key, those crypto coins could be lost forever. To safeguard against such mishappenings, Coincover seems to be providing a notable option.
It doesn’t seem like the cryptocurrency boom will be slowing down any time soon. However, countries like China, on the other hand, are banning the digital currency. While there are two sides to this story, people investing in crypto who feel the need to protect their assets now have a notable option to go with.