According to the Crypto Confidence Report 2022, almost half of all crypto users have already experienced a service outage on a platform they use for crypto trading. Now, the first insurance coverage for errors by providers of such trading venues should help strengthen buyers ‘and sellers’ confidence in crypto platforms.
Simultaneously with the launch of the innovative cloud contingency insurance for cryptocurrencies, Parametrix, provider of parametric insurances, has published “Crypto Confidence Report 2022”. This is a survey of 522 U.S. consumers, including both cryptocurrencies and non-users, conducted by Propeller Insights, to shed light on current consumer perceptions of cryptocurrencies and the impact of platform disruptions on user confidence should provide.
Service interruptions damage confidence in crypto trading
The study shows that service interruptions on crypto platforms are significant contributors to damaging users’ trust and loyalty to crypto companies. Of the respondents, 45% of crypto users have already experienced a service outage on a platform they use for crypto trading, and have therefore not been able to access their accounts or money. 71% of crypto users said that after an outage, they would either withdraw all their money from the platform as soon as it becomes available again, or switch to another platform, stock exchange or wallet once the outage is over. Parametrix monitoring data from 2021 also shows that one of the three major public cloud providers experienced an outage of at least 30 minutes every three weeks on average.
Trust is a key aspect when trying to establish cryptocurrencies. Two-thirds (66%) of crypto-non-users said they “do not trust” crypto platforms, exchanges and wallets, while only 10% of crypto-users feel the same way. But even among crypto users, trust is still an issue where the majority (58%) say they only “to some extent trust” crypto platforms, exchanges and wallets.
Insurance solutions increase trust in crypto providers
Nearly two-thirds (65%) of all respondents said they would be more likely to buy, trade or store cryptocurrency on a platform, stock exchange or wallet that offers compensation if that platform becomes inaccessible due to a technology failure. Among crypto users, it was even 89%.
“Parametrix helps cryptocurrencies build trust by maintaining cash flow and thereby maintaining their reputation with customers,” said Yonatan Hatzor, co-founder and CEO of Parametrix. With Parametrix Cloud Contingency Insurance, crypto companies set their insurance coverage in advance by determining the amount of coverage per hour. If there is a cloudburst, they quickly get the funds they need because, contrary to traditional claims, there is no lengthy replacement process with Parametrix.
The full Crypto Confidence Survey 2022 report is available here.
Also read: Windows 11: Most devices are not yet ready for migration.
Share the message “Crypto Trading: New Cloud Contingency Insurance for Platforms from Parametrix” with your contacts: