Protecting your Cardano portfolio | CoverCrypto.io 🛡️

[GENERAL] Name and surname of main applicant

Con E.

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

CoverCrypto is a trading name of Redefind Ltd. Redefind Ltd is an FCA (and BaFin Q4 2024) regulated insurance provider for digital assets. Redefind Ltd is registered in England and Wales under company number 14884458, registered office at 40 Lime Street, London, EC3M 7AW. 

Rich D. https://www.linkedin.com/in/richard-daws/

Connor E. https://www.linkedin.com/in/connor-edward-644877222/

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

4

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

CoverCrypto is a membership that covers the cost of recovering stolen crypto, making crypto recovery services available and affordable. Insured by Lloyd's of London syndicates.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

NA

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

CoverCrypto is a proprietary solution that offers specific services.

[METADATA] Horizons

Infrastructure

[SOLUTION] Please describe your proposed solution

Problem

Cardano asset holders are completely on their own if they suffer a theft. Law enforcement agencies worldwide lack the expertise and resources to respond effectively to cryptocurrency theft, leading to an extremely slow or inadequate action. While specialised crypto investigators can trace stolen assets, their services are prohibitively expensive, and engaging crypto lawyers to freeze stolen funds on centralised exchanges (CEXs) can cost tens if not hundreds of thousands of dollars. As a result, these costly and specialised services are inaccessible to most users, leaving the average Cardano asset holder unprotected and vulnerable in the aftermath of theft.

Solution

We offer affordable annual memberships that make the recovery of cryptoassets accessible to all holders, no matter the size of your portfolio. Our plans cover the cost of returning stolen cryptocurrencies, NFTs and tokens, and we’re insured by A-rated Lloyd’s of London syndicates to guarantee we can always provide our service to you, in any event. This is facilitated through paying crypto investigators and lawyers to work to reinstate your stolen cryptoassets to you.

For an annual memberships starting at £300 per year, users can connect up to 10 Cardano wallets (Ledger, Trezor and exchange accounts) to enable cover.

We are launching a new free tier in October 2024, that will allow holder to protect their EVM assets. The free tier offers complimentary crisis response services in an event you suffer a theft - a much needed service in the crypto space given global law enforcement is still not effective in resolving crypto thefts.

As a part of this grant, we will complete the Cardano implementation so Cardano assets can be protected into the paid tiers, alongside supporting Cardano in our free tier membership (allowing one Cardano address to be connected).

Below is an image of the cryptoassets we will be compatible with upon the successful grant application:

Reasons for Our Approach

We recognise that the insurance industry is eager to engage with cryptoassets, but only through a scalable and fraud-resistant solution. Our approach, which focuses on a membership backed by insurance (insuring the costs of discovering and recovering stolen crypto) addresses this need. By making a proven process (returning stolen crypto) accessible and affordable through insurance, we are creating a solution that benefits individual users and can be rolled out globally.

Who Will Our Project Engage

Our project will engage all Cardano asset holders by offering protection for their portfolios against various theft scenarios (e.g., wallet draining, SIM swaps, in-person thefts). We aim to serve a broad audience, ensuring that every Cardano asset holder can safeguard their investments through our affordable and effective memberships.

Demonstrating Impact

To demonstrate our impact, we will sync daily with the Cardano blockchain and display key metrics on a dedicated Cardano page on our website, including:

1. Total number of Cardano wallets protected by CoverCrypto
2. Total value of Cardano assets protected by CoverCrypto

These transparent metrics will showcase the growing security of the Cardano ecosystem as more users adopt our protection services.

What Makes Our Solution Unique

CoverCrypto is the world’s first solution specifically designed to protect individual cryptocurrency holders from theft, focusing on self-custody—a demographic identified as particularly vulnerable according to Chainalysis. Unlike other providers, we prioritise safeguarding individual consumers, filling a critical gap in the market.

Longer-Term Vision

Our grant solution will initially protect Cardano asset holders, but we aim to expand our offerings to include traditional insurance products (e.g., car, home) on the Cardano blockchain. This expansion will engage a wide range of stakeholders across the insurance industry—customers, brokers, and insurers—further embedding Cardano into an industry ripe for technological innovation.

About CoverCrypto

CoverCrypto offers an annual membership service that insures the cost of recovering stolen cryptocurrencies, NFTs, and tokens. Our service is insured by Lloyd’s of London syndicates. To learn more, please visit our website.

Longer term vision for the to Cardano ecosystem

In the long term, our project could catalyse broader insurance industry adoption of Cardano’s blockchain technology. Beyond CoverCrypto, Cardano’s tech could support various insurance use cases, including:

• Settlement of premiums: Streamlining interactions between insurers and reinsurers, removing intermediaries, and improving overall value to consumers.
• Immutable records: Enabling faster claim settlements while reducing administrative costs, as about 50% of premiums currently go toward such costs.
• Transparency and competition: Publicly accessible records could lead to better pricing and more competitive offerings, pushing costs lower for consumers.
• Ultimately, our goal is to contribute to the creation of a decentralised risk exchange, where insureds can share data and foster a competitive tendering process for insurance services.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Value to community

Cardano asset holders will now be able to have cover in place, so that if the worst does happen and they suffer a theft, they will be provided with world leading investigation and legal services to return their stolen crypto. We hope this will increase investor confidence within the Cardano ecosystem, leading to more adoption across all areas of the community.

Measuring & sharing the impact 

We will measure the following data points and present them publicly on a Cardano x CoverCrypto page on our website: 

1. The total Cardano wallets covered
2. The total $ value of all covered Cardano assets protected by CoverCrypto 
3. The total $ value of returned stolen crypto to Cardano asset owners

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Current technology

We have already successfully implemented a number of integrations across cryptocurrencies with the CoverCrypto application, at our own cost. Our integrations to date include other UTXO coins such as Bitcoin and Doge on Ledger, Trezor and Coinbase (alongside other major blockchains). Adding Cardano functionality to the CoverCrypto app is an extension of these existing UTXO implementations. 

Regulated business

Regarding fund management, as a regulated business, Redefind (CoverCrypto is a trading name of Redefind Ltd) has had to go through stringent auditing and had to demonstrate our financial prudence and corporate governance controls (to risk carriers and the FCA/BaFin).

Team:

Richard D.

Co-founder & CEO

Over 25 years of experience in complex international insurance (Aon, Brit, R.K Harrison, Chubb). Voted most influential CEO 2024 (Web3 Insurance) by CEO Monthly.

richard@covercrypto.io

Connor E.

CoverCrypto Co-founder, CPO / Investigation lead

Career spanning 10 years within the digital asset industry. Certificate of Insurance (CII) and Certified advanced digital asset investigator (TRM Labs).

connor@covercrypto.io

Rizwan P.

Exponential Partners Co-founder

Riz Pabani is a strategist with expertise in technology, project management, and strategic planning. With a rich background spanning financial services, blockchain, enterprise, and government sectors, he excels in driving operational excellence and integrating innovative technologies. His deep passion for the revolutionary impact of blockchain and artificial intelligence underscores his commitment to redefining business practices.

https://www.linkedin.com/in/rizpabani/

Sacha W.

Exponential Partners Co-founder

Sacha is an accomplished entrepreneur with over two decades of experience spanning management consulting, technology, Finance and blockchain. His career reflects a blend of strategic innovation and operational excellence. His expertise in leveraging technology for business transformation makes him an ideal figure to lead our initiatives in the Americas.

https://www.linkedin.com/in/sachawindisch/

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Planning and Architecture

Objective: Develop a comprehensive plan for integrating Cardano blockchain connectivity and proof of ownership features.

Milestone output:

• Approved project plan document

Acceptance criteria:

• Project plan includes detailed timeline, architecture design and resources
• All key stakeholders have reviewed and approved the plan

Evidence of completion:

• Signed project plan document with stakeholder approvals

Development - Blockchain Connectivity

Objective: Develop the connect functionality with the Cardano blockchain and implement proof of ownership features.

Milestone output:

• Functional Cardano blockchain integration with proof of ownership

Acceptance criteria:

• Secure connection established with Cardano blockchain
• Users can connect their accounts and prove ownership
• Withdrawal transactions are accurately displayed and selectable for theft reporting

Evidence of completion:

• Technical demonstration video showcasing blockchain connectivity and proof of ownership features

Development - Back-Office Integration and Testing

Objective: Enable Cardano compatibility in back-office systems and conduct thorough testing.

Milestone output:

• Fully integrated and tested end-to-end system (from buying cover to reporting a Cardano asset theft), running on CoverCrypto development environment (but on Cardano mainnet).

Acceptance criteria:

• Back-office systems successfully issue membership agreements compatible with Cardano connections - user paying for cover, being issued a CoverCrypto membership agreement by email, connecting a Cardano account (wallet) and reporting a theft (withdrawal transaction) which is sent to an approved crypto investigator

Evidence of completion:

• Video presentation of the whole process from start to finish (user paying for cover, being issued a CoverCrypto membership agreement by email, connecting a Cardano account (wallet) and reporting a theft (withdrawal transaction) which is sent to an approved crypto investigator)

Audit, Marketing, and Launch

Objective: Conduct a security audit, implement marketing strategies, and prepare for official launch, running on CoverCrypto production environment (and on Cardano mainnet). 

Milestone output:

• Free-tier launched in production
• Membership (paid) tier launched in production
• Conference attendance to showcase product
• Security audit

Acceptance criteria:

• Security audit completed with all critical issues resolved
• Marketing campaign executed with predefined KPIs met
• All launch preparation checklist items completed

Evidence of completion:

• Final audit report from Sentnl and marketing campaign summary document
• Links to Social media posts (X, LinkedIn)
• YouTube video with walkthrough how Cardano users can sign-up to both free and paid tiers
• Attendance of a crypto conference where the Cardano logo is used on booth

Record Video & Final Report

Create a quality, narrated video of a user signing up to CoverCrypto, purchasing their cryptoasset cover and then connecting a Cardano account, and then reporting a theft event which activates the CoverCrypto insurance-backed membership benefits (starting with the investigation services).

[RESOURCES] Who is in the project team and what are their roles?

Rich D., Founder & CEO, CoverCrypto

Over 25 years of experience in complex international insurance (Aon, Brit, R.K Harrison, Chubb). Voted most influential CEO 2024 (Web3 Insurance) by CEO Monthly. Linkedin

Con E., CPO, CoverCrypto

Experience working within the digital asset sector, having worked for both cryptocurrency projects and a private blockchain company. Certificate of Insurance (CII) and Certified advanced digital asset investigator (TRM Labs). Linkedin

Rizwan P., Exponential Partners Co-founder

Riz Pabani is a strategist with expertise in technology, project management, and strategic planning. With a rich background spanning financial services, blockchain, enterprise, and government sectors, he excels in driving operational excellence and integrating innovative technologies. His deep passion for the revolutionary impact of blockchain and artificial intelligence underscores his commitment to redefining business practices.

https://www.linkedin.com/in/rizpabani/

Sacha W., Exponential Partners Co-founder

Sacha is an accomplished entrepreneur with over two decades of experience spanning management consulting, technology, Finance and blockchain. His career reflects a blend of strategic innovation and operational excellence. His expertise in leveraging technology for business transformation makes him an ideal figure to lead our initiatives in the Americas.

https://www.linkedin.com/in/sachawindisch/

Andy V., Software engineer

Experienced full-stack engineer, held a number of technical roles all the way up to CTO at a finance startup in Asia.

Blockchain engineer, unidentified

We will be aiming to recruit this individual from the Cardano community.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1: Planning and Architecture (15% of total budget, 1 month)

Total: 60,750 ADA (20 working days)

• Project Manager: 20,250 ADA (10 days)
• Technical Architect: 30,375 ADA (15 days)
• Developers: 10,125 ADA (10 days, split among team members)

Milestone 2: Development - Blockchain Connectivity (30% of total budget, 1 month)

Total: 121,500 ADA (20 working days)

• Project Manager: 12,150 ADA (5 days)
• Technical Architect: 24,300 ADA (10 days)
• Developers: 85,050 ADA (40 days, split among team members)

Milestone 3: Development - Back-Office Integration and Testing (35% of total budget, 1 month)

Total: 141,750 ADA (20 working days)

• Project Manager: 14,175 ADA (6 days)
• Technical Architect: 28,350 ADA (10 days)
• Developers: 99,225 ADA (45 days, split among team members)

Milestone 4: Audit, Marketing, and Launch (20% of total budget, 1 month)

Total: 81,000 ADA (20 working days)

• Project Manager: 8,100 ADA (5 days)
• Technical Architect: 8,100 ADA (5 days)
• Developers: 24,300 ADA (20 days, split among team members)
• Auditor (Sentnl): 20,250 ADA (7 days equivalent)
• Marketing and Conference: 20,250 ADA (7 days equivalent)

Contingency (10% of total budget)

Total: 45,000 ADA

Total Budget Allocation

• Milestone 1: 60,750 ADA (20 working days)
• Milestone 2: 121,500 ADA (20 working days)
• Milestone 3: 141,750 ADA (20 working days)
• Milestone 4: 81,000 ADA (20 working days)
• Contingency: 45,000 ADA

Total: 450,000 ADA (80 working days + contingency)

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

CoverCrypto is the only solution in the world that covers the events that no technology, security or hardware wallet can protect against, and the benefit to the Cardano ecosystem is allowing all Cardano asset holders to access such a system to both feel safer and to be made whole if the worst were to happen to them. 

Currently, the only protection that a Cardano asset owners has available to them, is a hardware wallet, of which there are only a handful of providers (some of which have been hacked!). Hardware wallets are brilliant protection mechanisms to prevent a theft, but they do absolutely nothing once funds have left your wallet. The same shortcomings can be said of law enforcement - holders think GLE will be there for them if something bad happens, but in reality the vast majority of law enforcement can be a combination of the following: extremely slow to respond (months in some cases), do not understand crypto, and can actually make matters worse (there are some nations which are an exception to this!).

Furthermore, there are a number of theft opportunities which hardware wallets for example, can do nothing to help with: address poisoning, in-person thefts, and social engineering attacks to name only a few, the rates of all of these are growing rapidly. CoverCrypto is the only solution in the world tackling the problem of offering solutions for victims of self-custody theft, covering theft events that no technology, security or hardware wallet can protect against. We see CoverCrypto as the perfect additional layer of security to sit behind hardware wallets, so a user is protected from both before the event and after the event theft scenarios.