Is it possible to insure investors' risks with ICO?

Is it possible to insure investors' risks with ICO?

The latest crypto currency news for today is a discussion of the possibility of the first stage of risk insurance in the process of ICAO project seals.

To say that this idea has only recently become topical because, for example, Telegram in the White Paper of its ICO- of the Open network project, entered commitments to return funds to investors, if the project is not implemented by the fall of 2019. However, in one of the forums of crypto activists, the representative of the company anonymous questioned about the guarantees of the return of funds, because according to him, it is unlikely that the organizers of ICO will have enough collected and their own finances to pay at least one large investor.

Features of insurance in the ICO market

In traditional investment markets, both mechanisms and risk insurance tools have been worked out, and first of all, this way of providing guarantees, like hedging, is used.

In other words, an investor is offered pre-established indicators of the purchase and sale of the asset in the future. When these agreed quotations are reached, the previous owner of the asset must redeem it from the present owner, thereby providing him with an investment guarantee.
It would seem that nothing is easier than using this mechanism in the implementation of the ICO.

However, here there are two fundamental obstacles for cryptology.

The first is legal, since crypto-coins in accordance with the laws of many, including Russia, serve neither property, nor financial, nor other valuable assets. Although there are countries where crypto assets (for example, in Israel) are subject to taxation as property assets. But basically, the value of digital assets is not legally defined, so it turns out that there is really nothing to insure.

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The second is that there is no objective evaluation of crypto assets due to their high volatility. Insurance companies do not have expert estimates of cryptology, much less such an unpredictable segment as the ICO market.

Probable insurance scenarios for ICO

In the crypto community, more or less recognized estimates of digital assets, ratings of agencies that specialize in analysis of prospects of some ICO projects.

However, in order to fully trust them, it takes time for these agencies to receive recognition from investors, conducting successful examinations, while rating companies have appeared quite recently and so as for all kriptonok.

As for the probable scenarios for leveling the risks of ICO investors, then, like in traditional insurance, it is also necessary to pay for everything either as part of the profit or as a premium to the insurer.

Therefore, there are two probable the path of investment insurance is a classic insurance against events of a random nature, as well as from fraud, and hedging insurance.

In the second case, the investor contracts either with the insurance company, if any or, most notably, with ICO developers, that at some time when the specified token quotes are reached, developers must redeem them from the investor.



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