Should you still insure your NFTs in 2023?

An NFT translates intangible products to prove a deed. These include videos, sound recordings and illustrations. Buying an NFT means being able to store it in your virtual space (blockchain) with the assurance that it is protected in the internet world. Thus, you are the sole owner and the only right to use it. These purchases allow artists to earn money through cryptocurrency during the development of new art, 2.0.

The NFT concept is growing enough to raise the question of whether insurance would be necessary in the event of a problem. However, the transactions are secure and the virtual world allows almost no possible mistakes. Everything seems to be perfectly safe.

Provision of virtual works of art

The rise of NFTs raises the question of whether they are sufficiently protected in the regulated and encrypted virtual space to protect them. Indeed, the computer has never been completely infallible, and malicious intent is always possible even for digital works. The paradox of NFT is that even if the trend is accelerating, it is not yet well known and developed enough to receive foolproof protection. Therefore, the still-under-construction universe may leave its share of dangers – but like everything eventually.

Thus, securing jobs, whether virtual or real, is completely possible. Standard insurance companies already offer to insure artwork provided they have a physical vault. If this is the case according to the NFT, then the insurance in question will also cover the damage caused to this boy. If you doubt the inclusion of Non-Fungable Tokens in your contract, do not hesitate to ask about your insurance. Thus, to have more information on the subject and thus, not to fall from the height in case of problem.

Warning, a virtual vault will certainly be the exception to the rule for this type of insurance that only covers physical goods.

Furthermore, these digital files are not covered by traditional insurances, so you should turn to specialized contracts. Some companies like Hiscox bid on this topic, so find out. It is entirely possible to protect your virtual goods.

Nothing is required at this time

In fact, NFTs remain in a domain well protected by blockchains which are virtual spaces created to protect your purchases. Virtual safes are very effective, but it will be a matter of keeping your codes confidential and being careful on all kinds of sites and networks. Beware of scams, suspicious links (phishing links) and change your passwords regularly. Anything can happen and you are not immune to anything.

To give you an example, OpenSea, one of the largest NFT markets, recently suffered a bug that caused con artists to lose some NFTs to sell them at ridiculous prices to strategic buyers. These “Non-fungible Tokens” were then sold for 99% less than they were originally worth. However, if the site is very well protected and adapted for virtual jobs, the fact remains that errors in the computer field are numerous.. The world of the Internet is constantly expanding and can cause harm to those who blindly trust it.

Insurance to guarantee protection and coverage of damages from NFTs will not do everything, of course. But it is precisely for risks that it is not possible to mitigate that it can be useful. So if you are a big collector of these images or even a creator in this field, pay attention to what may be watching your back. You can thank yourself later.

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