- Coincover builds the global security standard for cryptocurrency, providing the world’s first coverage against cryptocurrency theft and military-grade technology to regain access to lost funds
- With up to 20% of global bitcoin lost due to human error, Coincover’s platform protects crypto users and investors from theft, user errors, and infrastructure failures.
- After launching the product last year, Coincover is working with companies like BitGo, Curv, and Fireblocks to deliver their innovative plug-and-play platform to millions of potential end users.
- With Coincover’s protection, losing a laptop or smartphone no longer means losing millions of dollars in crypto investments
- Coincover aims to provide the security and certainty needed to establish cryptocurrency as a global financial standard
- The company has raised $ 9.2 million from investors, including Element Ventures, to grow the team and invest in the product so that it can support a larger portion of the market.
Coin cover – the platform providing industry-leading insurance protection and guarantees to cryptocurrency investors – today announces that it has raised $ 9.2 million in Series A funding from leading fintech investors and in crypto. Element Ventures from London led the round with participation from 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 the Development Bank of Wales.
Building the security standard for cryptocurrency
Founded in May 2018, Coincover is building the global security standard for cryptocurrency. The company’s services ensure that users and businesses never lose access to cryptocurrency funds due to user error, business failure, or infrastructure failure. By combining cutting edge technology and insurance guarantees, Coincover provides disaster recovery and business continuity options for cryptocurrency businesses and enables consumers to enter this exciting market safely.
Coincover’s plug-and-play platform combines policy underwritten by Lloyd’s of London with technology created by experts in government, military and law enforcement. It provides access to secure private key backup and recovery with standard government security protocols and insurance coverage against theft, fraud, user error, and business failure. Crypto companies are integrating the Coincover platform into their offering, giving their clients peace of mind when investing and trading cryptocurrencies.
As interest in cryptocurrency grows, with more than 100 million global crypto users according to Crypto.com, the scale of potential problems is also increasing. Cryptocurrency is usually held in digital wallets, protected by private keys or offline, cold wallets which can be a paper wallet, a USB stick or a hard drive. If a cold wallet is lost or an investor forgets their private key, access to digital coins can be lost forever. It is estimated that approximately 20% of all bitcoins are lost or blocked in inaccessible wallets – currently equivalent to $ 806 billion. Just like regular bank accounts, crypto wallets can also be hacked. In 2020 alone, it were 122 hacks on decentralized applications, cryptocurrency exchanges and blockchain wallets, which resulted in a loss of around $ 3.78 billion.
Coincover was designed to protect and prevent these issues, ensuring that more people can invest in cryptocurrency with greater security and the assurance that they don’t lose their investments if they lose a password or private key. Secure key storage means Coincover creates offline emergency backup keys for wallets, stored offline, fully encrypted, and with no network exposure to prevent targeting by hackers. The Deposit Protection Guarantee protects clients’ portfolios up to a value of $ 1 million in the event of a business failure or catastrophic system failure. And Coincover’s Account Monitoring and Awareness feature monitors any threats to an account.
Already hundreds of companies are using Coincover’s platform, including wallet providers BitGo, Curv and Fireblocks, with millions of potential end users protected with its technology. Losing a laptop or smartphone no longer means losing millions of dollars in crypto investments.
Improve access to crypto investments
In the same way that consumers buy travel insurance when they book vacations, Coincover wants to make sure that everyone can access coverage when they invest in cryptocurrency. By offering its plug-and-play platform to crypto investment apps and platforms, investors can buy and sell over 200 different coins from different platforms and wallets and know if they are covered. by Coincover, their investment is safe. It helps reduce the risk associated with investing savings in crypto and is in the headlines. on people who have two guesses to unlock bitcoin worth $ 240 million will become a thing of the past.
By reducing the risk associated with cryptocurrencies, Coincover aims to democratize access to the industry, give people the choice to invest in this burgeoning industry, and ultimately create the standard of security needed to make money. cryptocurrency a global financial standard.
To fuel this, Coincover raised $ 9.2 million in Series A funding. Element Ventures led the round, with participation from DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, âSusquehanna Private Equity Investments, LLLP â, Volt Capital and the founding investors, Insurtech Gateway Fund and the Development Bank of Wales. The funding will be used to publicize the product offering and grow the team so that Coincover can take over a larger portion of the crypto market.
David Janczewski, Co-Founder and CEO of Coincover, said: âCrypto can be complex and confusing, and people have legitimate concerns about the safety of their funds. With Coincover, we provide a fundamental building block for a maturing market by ensuring that people can be protected from mistakes that can end up costing them thousands of dollars. This investment means that we can quickly adapt our growth to market and consumer demands, and thus ensure that more people can invest in crypto safely. “
Michael McFadgen, Partner at Element Ventures, said: âMore and more people are investing in cryptocurrencies, but the industry needs infrastructure and collateral to make it more user-friendly. People don’t want to lose their laptops and see millions of people go missing. Coincover is building the infrastructure that will allow crypto to achieve mass adoption, with a fantastic management team that can tackle this problem in a way that no one else can. We are delighted to support David and the team and look forward to being a part of their growth journey.
Kim Trautmann, Head of DRW Venture Capital, said: âAs a leading investor in crypto assets, it was clear to us that there would be huge opportunities for smart, forward-thinking startups to develop products that support the evolution of the ecosystem. Coincover has positioned itself to take the lead in solving one of the most common issues – how to protect access to the wallet and the funds within. We are excited to make this investment and to work alongside Coincover’s world-class leadership team to raise awareness of these issues. “
Sean Lippel, Head of Digital Assets at FinTech Collective, said: âThe private key experience is still too foreign, cumbersome and risky for traditional crypto users. As digital assets seek to grow adoption from millions to hundreds of millions of users, Coincover’s deposit and theft coverage solution will be a staple. We are delighted to support such a talented UK technical team with a strategic B2B2C marketing strategy that will empower custodians around the world. “
Soona Amhaz, General Partner at Volt Capital, said: One of the biggest challenges in our industry is crypto protection, and Coincover is the team to solve it. Coincover is building a critical infrastructure to help users and institutions become familiar with this new financial paradigm. We are delighted to support David and the rest of the Coincover leadership team.
Avon Ventures is a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments