Last updated 9 months ago
If you suffer Cardano asset theft, you have no effective remedies available to recover your stolen assets. Law enforcement lacks crypto expertise and recovery services are extremely expensive.
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.
This is the total amount allocated to Protecting your Cardano portfolio with CoverCrypto.io.
Please provide your proposal title
Protecting your Cardano portfolio with CoverCrypto.io
Enter the amount of funding you are requesting in ADA
60000
Please specify how many months you expect your project to last
4
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
If you suffer Cardano asset theft, you have no effective remedies available to recover your stolen assets. Law enforcement lacks crypto expertise and recovery services are extremely expensive.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
No
License and Additional Information
CoverCrypto is a proprietary solution that offers specific services.
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Security
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
CoverCrypto is the world's first solution specifically designed to protect individual cryptocurrency holders from theft, focusing on self-custody. Unlike other providers, we prioritise safeguarding individual consumers, filling a critical gap in the market with insurance-backed recovery services.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
Our MVP will demonstrate Cardano wallet integration, theft detection monitoring, and recovery service coordination. The platform will be accessible through our website with Cardano-specific features including wallet connection for up to 10 Cardano addresses and real-time asset monitoring.
Describe realistic measures of success, ideally with on-chain metrics.
Number of Cardano assets insured
Number of Cardano portfolios insured
Value of assets insured (tracked on-chain)
User retention and claim processing speed
Amount of recovered Cardano assets
Community feedback and adoption by Cardano dApps
Please describe your proposed solution and how it addresses the problem
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 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 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.
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 annual memberships starting at £300 per year, users can connect up to 10 Cardano wallets (Ledger, Trezor and exchange accounts) to enable cover.
We have already developed such a solution for Ethereum and it is available on the CoverCrypto app.
As part of this grant, we will complete the Cardano implementation so Cardano assets can be protected in the paid tiers, alongside supporting Cardano in our free tier membership (allowing one Cardano address to be connected).
Unique 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.
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 have a clear route to recovery. This will give confidence to Cardano asset holders and will encourage more people to hold Cardano assets, knowing that there is a safety net in place.
Measuring Impact
We will measure this impact by tracking the number of Cardano wallets protected by CoverCrypto and the total value of Cardano assets protected. We will display these metrics on a dedicated Cardano page on our website, updated daily by syncing with the Cardano blockchain.
Long-term Vision
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, immutable records for faster claim settlements, and transparency for better pricing. 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.
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?
Team Expertise: Richard Daws (25+ years insurance, Lloyd's of London experience), Connor Edward (blockchain forensics specialist), Andrew (Cardano/Plutus developer). Team combines insurance domain knowledge with proven blockchain technical capabilities.
Existing Infrastructure: CoverCrypto operates successful crypto insurance platform with 1600+ members. Free tier embedded in UK money advisory business with 50k clients. Existing operational experience, regulatory compliance frameworks, and technical infrastructure dramatically reduce execution risk.
Technical Validation: Completed proof-of-concept wallet signing verification. Confirmed integration feasibility with Cardano wallet teams. Validated architecture through consultation with senior Cardano developers.
Risk Mitigation: Phased development approach with extensive testing. Existing compliance framework manages regulatory risks. Proven platform capabilities and clear milestone structure minimize execution risks.
Track Record: Successfully launched CoverCrypto platform on schedule, maintained 99.9% uptime over 18+ months, processed successful recovery cases.
Milestone Title
Project Documentation
Milestone Outputs
Project scope document defining MVP features and boundaries
Detailed technical design spec for Cardano MVP focused on on-chain wallet proof-of-ownership, Ledger wallet integration, and a policy management dashboard.
Acceptance Criteria
Scope document clearly defines project boundaries with explicit in-scope and out-of-scope items
Architecture specification includes details on Cardano wallets that will be supported
Includes detailed project plan
Evidence of Completion
Link to published scope document PDF
Link to technical architecture specification
Link to project plan
Delivery Month
1
Cost
20000
Progress
30 %
Milestone Title
Cardano Integration Development & Platform Launch
Milestone Outputs
Complete technical integration with Cardano blockchain for real-time monitoring
Wallet connection capabilities for Cardano addresses (Ledger, Trezor, exchange accounts)
Platform launch with Cardano support in both free and paid tiers
Acceptance Criteria
Users can connect a Ledger wallet and successfully prove ownership of their account and identify the transactions (withdrawls)
10 successful wallets connected
Platform successfully launched with Cardano support live
Evidence of Completion
Working platform with live Cardano integration
Test results showing successful wallet connections
Live platform accessible to users
Delivery Month
3
Cost
30000
Progress
80 %
Milestone Title
Project Close-out Report & Video
Milestone Outputs
A 2/3 page written summary 'Project Close-out Report' listing KPIs and how they were (or were not) addressed and what the next stage plans are with the product
Final closeout video
Marketing messaging sent out from CoverCrypto
Acceptance Criteria
Final closeout report is publicly available
Final closeout video is publicly available
Will be structured in the format specified here: https://docs.projectcatalyst.io/current-fund/general-information/project-close-out-report-and-project-close-out-video-pcr-and-pcv
Marketing messaging from CoverCrypto includes details on how Cardano users can access their insurance product
Evidence of Completion
Link to final closeout report
Link to final closeout video
Link to marketing message on relevant socials or press release
Delivery Month
4
Cost
10000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Budget Justification
This ₳60,000 budget represents excellent value for delivering a functional proof-of-ownership insurance prototype on Cardano. The allocation prioritizes core technical development (₳38,000 combined for backend and frontend) while ensuring comprehensive testing and community validation. The budget leverages CoverCrypto's existing insurance infrastructure and Lloyd's backing, significantly reducing development costs compared to building from scratch. Andrew's expertise in Cardano/Plutus development ensures efficient delivery of the wallet signing module and Ledger integration within the 4-month timeline.
How does the cost of the project represent value for the Cardano ecosystem?
This project represents excellent value for money for the Cardano ecosystem because:
Immediate Protection: Provides immediate security benefits to Cardano asset holders through proven, insurance-backed recovery services at a fraction of the cost of building from scratch
Ecosystem Growth: Encourages more people to hold Cardano assets by providing security assurance, potentially increasing ADA adoption and value
Insurance Innovation: Introduces the traditional insurance industry to Cardano blockchain, opening doors for broader financial services integration
Proven Solution: Leverages existing, operational CoverCrypto platform with regulatory compliance and Lloyd's of London backing
Cost-Effective Integration: ₳60,000 investment focuses specifically on Cardano integration rather than building entire platform from scratch
The ₳60,000 investment will enable Cardano asset protection for potentially thousands of users, making it a highly cost-effective security solution. With Lloyd's of London backing and FCA regulatory compliance already in place, this project brings institutional-grade security to individual Cardano holders at minimal cost to the ecosystem, significantly enhancing the overall security posture of Cardano with maximum efficiency.
Terms and Conditions:
Yes
• Richard Daws - Project Lead & Insurance Expert: 25+ years insurance industry experience with senior roles at Lloyd's of London syndicates, structured £500M+ premium portfolios, expert in cyber risk and digital asset coverage, co-founder of CoverCrypto with proven platform delivery
• Connor Edward - Blockchain Security Lead: Digital asset investigator trained on the TRM Labs tool