bZx Hack Victims See the First Payout From Decentralized Insurance Platform Nexus Mutual

The decentralized insurance platform, Nexus Mutual, has announced the payment of its first claims to victims of bZx hacking attack, CoinDesk reports.

The crypto insurance firm based in London operates like a cooperative (like other firms bearing ‘mutual’ within their names). In this regard, there have been widespread concerns if indeed the firm’s members will eventually agree to pay out claims which are valid. However, following a thorough analysis of bZx’s attack and the release of the results on Monday, the company agreed to pay out two claims which are estimated to be worth $31,000.

Hugh Karp, Nexus Mutual founder explained that it is not a good thing that ordinary crypto investors are losing their funds through hacking, but the payment proves that Nexus’ system actually works.

Mutual insurance companies give the policyholders the powers to control the insurance pool. As per the Nexus Mutual case, this means that policyholders vote to decide whether the claims should be paid out or not. The mutual account has funds that are owned by individuals who own the NXM (Nexus) token. The current payment was the second try after the NXM holders voted not to pay out during the first voting.

One of the first investors of Nexus Mutual, Lasse Clausen from 1kx Capital, expressed his gratitude that the policies had been honored. He stated that the payment will lead to more people trusting the company. He added that more people in the industry are likely to insure their smart contracts following this pay out.

The venture-backed firm, boasts of such investors like Blockchain Capital as well as 1confirmation, was launched in May last year.

At the moment, people are free to take out policies to safeguard against a genuine Ethereum-based smart contract. These policies can be described like bets against if or not a given smart contract is bound to fail for a particular reason. If an exploit or attack happens on a given smart contract where mutual members gives a nod that it is a representation of a smart contract failure, then such policy is paid out.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Joseph Kibe
Joseph Kibe
Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today