Source: Techmeme
As crypto platforms scale customer bases, they’re launching insurance products that create a false sense of security while excluding the most prevalent attack vectors—phishing and social engineering—that account for the majority of user losses. This gap reveals a fundamental misalignment between what consumers believe they’re buying and what platforms are actually willing to underwrite, effectively shifting risk management theater over genuine protection. The pattern suggests that crypto commerce is still operating under legacy financial rules (insurance-backed accounts) without addressing the sector’s unique vulnerability profile, leaving a lucrative opportunity for third-party insurers willing to cover what platforms won’t.