Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

Advanced

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

ETH has outperformed, bolstered by SEC Chair Gary Gensler's announcement of his Jan 20, 2025 departure, and suggested by growing open interest in ETH perpetual. This positive momentum extends to several large-cap altcoins previously scrutinized by the SEC, as indicated by bullish funding rates for long positions.

Please check out the report’s highlights.

ETH Open Interest Grows While BTC’s Declines

ETH is outperforming BTC following the announcement of SEC Chair Gary Gensler’s departure, as evidenced in perpetual swap markets. BTC open interest has decreased from last week's highs, while ETH contracts have increased. Additionally, ETH trade volumes constitute a larger share of daily trading as compared to much of the past six months, despite an overall dip in trade volumes this week. The gradual decline in BTC open interest, without a surge in trading activity, indicates a strategic repositioning, rather than a wave of liquidations.

BTC Option Curve Inversion Deepens as Price Retreats

The pullback in the spot BTC price from the $100K target has led to a flat ATM volatility term structure, with short-tenor options dropping below 60%. 

This trend continues the correlation between term structure inversion and BTC spot price returns observed since the U.S. election on November 5, 2024

. The decline in front-end volatility aligns with lower realized volatility levels. While demand for short-tenor options has moderated, there hasn't been a notable change in open interest for calls or puts. Instead, their growth has stalled at the week's start.

Sentiment in ETH options markets seems moderately more bullish than in BTC's during the recent decline in momentum from the post-election rally. Call options lead in both trading volumes and open interest. 

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 27, 2024): Signal on ETH Outperformance Against BTC Surfaces on Long-Term Contracts

Crypto

Crypto investment can be lucrative, but it brings new risks, especially in the DeFi realm. Is crypto-insurance the solution for everything? Learn more.

The crypto market is growing in leaps and bounds. As it does so, it’s gaining more acceptance in the traditional financial system. Governments are exploring their options for incorporating cryptocurrencies into their central banks, while financial institutions are investigating new crypto-inspired products to offer their customers. The world of 

 is an exciting one, offering consumers numerous worldwide options to access vibrant new financial products, applications and services. But crypto also brings new risks. Is crypto insurance, which promises the protection we seek, the next big thing?

Crypto insurance is a type of insurance policy designed to protect against losses associated with cybersecurity breaches. Most major crypto exchanges carry at least some insurance to protect the digital assets in their custody against losses from theft and other security breaches. 

Because cryptocurrency isn’t legal tender, it’s not protected the same way other deposits might be by bank insurance. For example, in the United States, bank deposits are typically protected by the 

 (FDIC) or Securities Investor Protection Corporation.

On contrary, exchange insurance is designed to protect against losses incurred in covered security events. However, total losses may occasionally exceed insurance recoveries, leaving some investors unable to recover their entire investments. Additionally, policies don’t cover personal losses, such as those associated with lost credentials or personal data breaches — which means that there can be coverage gaps for some users.

Do Crypto Exchanges Insure Your Digital Assets?

The crypto insurance industry is still in its infancy, and many crypto assets simply aren’t protected by insurance. Most insurance policies are designed for businesses and corporations, not for private consumers.

Crypto wallets and exchanges purchase insurance policies with coverage, designed to protect against cyber theft and security threats. Other types of coverage are still in development and may feature additional protection, such as decentralized finance (

) insurance, which could feature protection against the loss of funds associated with the shutdown of a service provider, lost private crypto keys, or similar catastrophes. However, these policies aren’t yet available for consumers to purchase.

In other words, the average consumer’s protection depends largely on the services they access and use. For the safest experience, the most basic level of security should include two-factor authentication (2FA) as a standard. Users are asked to provide additional information, such as a code, whenever they log in. Using a cold wallet for the majority of digital assets is also advisable. 

 are more convenient, but they’re more easily accessible to hackers. Cold wallets are offline and are typically air-gapped, making them well-protected from those with ill intentions.

Most exchanges offer additional security measures, including crypto insurance programs. These aren’t backed by government-sponsored insurance plans the way conventional banks are, but if the exchanges are hacked, your funds will be protected and you’ll be compensated for your loss up to the amount specified in the insurance policy.

Do We Need Insurance in the Cryptocurrency Ecosystem?

, numerous hacks have put crypto funds in peril. The 

 resulted in more than $600 million being stolen from Ethereum, Binance Smart Chain and Polygon wallets. 

 nearly $150 million in Ether, Bitcoin and stablecoins in two separate hacks, and in December, hackers stole nearly $200 million from Ethereum and BSC wallets.

Investing in cryptocurrency brings the promise of major returns, but the risks can be very real with a volatile crypto marketplace. There’s a real need for crypto insurance policies, but insurance industry policies and premiums tend to be based on historical data. Because the crypto marketplace is still so new, historical data tends to be lacking, and market volatility can make the process even more difficult. 

When Bitcoin and other cryptocurrencies skyrocket in value, hot wallets and exchanges become especially attractive to hackers and thieves. For example, on Jan. 20, Crypto.com confirmed that it had been hacked with over 400 users being affected with unauthorized withdrawals on their accounts. Subsequently, Lloyd’s of London also reported using a variety of risk mitigation strategies, including cold storage, multi-signature wallets and server-side security.

Crypto insurance can fill the gaps, protecting against losses in a vulnerable, volatile system.

When Bitcoin was first unveiled, it was intended to serve as an alternative to the traditional financial markets. It would serve as a way for people to send and receive money via the internet without the need for an overseeing body or centralized authorities, but it would work much like any other currency.

Since its introduction, Bitcoin has grown in popularity and value, and numerous other cryptocurrencies have subsequently been introduced. The cryptocurrency markets have expanded rapidly, and crypto exchanges have had to move quickly to protect the integrity of their markets. The regulatory environment has evolved alongside the crypto markets, too. Regulators have gone from simply tolerating the existence of cryptocurrency to actively engaging with the markets.

From the Swiss Financial Market Supervisory Authority (FINMA) and Germany’s Federal Financial Supervisory Authority to the U.S. Securities and Exchange Commission (SEC), more countries’ regulatory bodies are taking proactive approaches when it comes to cryptocurrency.

 such as the Financial Action Task Force (

) have issued guidance regarding cryptocurrency, as widespread adoption continues with market volatility a commonplace occurrence. The ultimate goal is to create a strong framework, or regulatory environment, to inhibit fraud and money laundering without quashing the free-thinking and innovation that encourage economic development and let crypto markets continue to thrive.

Since Bitcoin’s introduction in 2009, the cryptocurrency market has grown in fits and spurts. Still, the market was largely retail-driven until the mid-2010s, when the total market value was valued at around

. At that time, the market entered what was known as a crypto winter, and prices cooled. Speculators fled the market, leaving only diehard crypto users who continued supporting the industry.

Their hard work paid off in the form of stronger infrastructure, new products and soaring demand. The long bitter crypto winter is now over, and institutions are ready to add crypto products to their investment portfolios. The demand for crypto products is hotter than ever, and the general public is clamoring for cryptocurrency and tailored products, financial services — and more regulated infrastructure.

The cryptocurrency market has also never been stronger or more viable for venture capital funds, banks and other institutional investors.

 investing in digital assets include Morgan Stanley, JPMorgan Chase, Citibank and BNY Mellon, with institutional investors beginning to significantly outweigh individual investors in the crypto marketplace. Retirement accounts are also increasingly turning to crypto investments.

There’s no better time than now to unveil a crypto insurance market.

Surge for Decentralized Finance (DeFi) Products

DeFi is still a relatively new concept in the crypto marketplace. Through the blockchain, users can complete hundreds or thousands of individual peer-to-peer transactions with complete security and privacy before settling them on the blockchain.

Decentralized finance refers to financial services that enable users to trade, borrow or lend via cryptocurrency on public blockchains. DeFi uses smart contracts to facilitate transactions without the need for a third-party regulator and facilitates peer-to-peer transactions through the use of DApps and/or exchanges.

The unregulated atmosphere surrounding the crypto marketplace and DeFi have allowed for some exciting and perhaps unexpected outcomes. In the traditional financial industry, regulations are intended to keep all parties safe and secure — but they can also have a dampening effect, preventing innovation and creativity that allow for stronger financial outcomes for both parties. In DeFi, transactions are built on the concept of “trustlessness.”

This doesn’t mean you cannot trust the transaction. Rather, it means that you do not need to put your trust in a third party or intermediary to complete the transaction. The process instead depends on smart contracts, a series of protocols that must be accomplished before the transaction can complete. This process protects both you and the other party in a transaction. Once the transaction is sent, it’s final. It cannot be reversed or altered in any way.

The growth potential for DeFi is enormous, which is why so many major players are looking to it, such as JPMorgan Chase and the Royal Bank of Canada.

Currently, the total value locked across DeFi stands at 

, compared to about $435 billion for this time last year. Comparatively, the

 is threatened by consumer inflation rates in the U.S.

This makes stablecoins and other cryptocurrencies with yields of 20 percent or greater even more attractive, for both individual and institutional investments. As the infrastructure has advanced, so has the access to and increased adoption of permissioned applications requiring KYC and Layer 1 blockchains, and Layer 2 scaling solutions for increased speed and improved asset management.

This has led to a new stage of evolution, with new cryptocurrencies, stablecoins and non-fungible tokens bringing new products and services — not just to more countries, but potentially to the entire world. This includes the estimated 1.7 billion currently unbanked people who could obtain simple mobile wallets, granting them instant access to the currency of their choice at a fraction of the cost of a traditional financial institution.

Bitcoin was the first cryptocurrency in history, and its blockchain was initially slow to attract fans. The first BTC cost just a fraction of a penny. Over time, its value slowly and steadily increased until it was nearly a dime.

Although at first only intended as a way to opt-out of the traditional banking structure after the 2007 financial crisis, the Bitcoin blockchain has grown to so much more. Recently, its price has soared and is currently trading

Cryptocurrency is a volatile market, though, and prices can drop quickly, even within a few hours — which is why experts recommend keeping only

 in cryptocurrency investments. Crypto insurance isn’t necessarily designed to cover the devaluation of your crypto, but it can protect against certain types of losses, such as a misplaced or forgotten key, or hacking or theft.

Increasing Crypto Hacks and Cyber Infiltration

As more people opt into cryptocurrency for everything from day-to-day transactions to investing for retirement, they attract another type of attention: that of bad actors with ill intentions. Hackers, infiltrators and thieves find the large volumes of currency passing through exchanges to be irresistible, and they use every tool at their disposal to access it. Security has been a concern for Bitcoin since its inception.

Blockchain technology has always been secure and difficult to hack, but it’s not totally impenetrable. Security risks are almost inevitable at every stage of the transaction process. From hacking into hot wallets to outright scams, hackers will attempt to access digital funds any way they can.

They’ll also attempt to infiltrate security systems. Crypto exchanges hold private wallet keys on behalf of their users via a custodial structure. This allows for speedier transactions, improved service and protection against loss. However, it can also pose a grave cyber threat if the administrative key is compromised by a security breach. The “admin key” provides complete control over smart contracts. If user funds are lost through a breach, they can only be protected for the amount insured by any policy covering them.

Therefore, both leading-edge security and high-quality insurance coverage are essential for protecting your digital assets when using a crypto exchange.

Generally, crypto insurance is designed to cover institutional losses. If a crypto exchange is affected by a security breach, its losses will be covered up to the amount covered in the policy. However, this emerging industry is beginning to recognize the need for individual crypto coverage as well. One insurer is now offering the service:

 to create a crypto policy that covers losses beyond that which an exchange might typically include. The policies range in cost from $10 to $750, and cover account holders’ digital assets against hacking, phishing, malware, device theft, trojan software and brute force attacks. There are some exclusions, however, and certain types of losses aren’t covered, including price fluctuations, blockchain failures and hardware loss or damage.

Other insurers haven’t yet entered the crypto insurance market — but they likely will as the insurance industry continues to heat up.

Crypto has gone mainstream, and as more people adopt and invest in digital assets, the industry will continue to expand. The potential for this virtually unregulated industry is nearly limitless — which is just what makes the risk-averse insurance market hesitate. That doesn’t mean that there aren’t plenty of opportunities for you, however. Proceed with caution, keep your wallet secure, and choose your investments wisely.

Is Crypto Insurance the Next Big Thing?

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