Japanese NFT platform HARTi has partnered with Mitsui Sumitomo, a Japanese insurance company to release NFT insurance opportunities for projects exhibited on the HARTi app. The insurance will be added to NFTs on display for free, with HARTi responsible for all premium payments. The described model puts holders at ease since their NFTs are protected by one of Japan’s most trusted NFT platforms.
Mitsui Sumitomo compensate holders of insured NFTs if anything were to happen. Phishing links, scams, and seed phrase-related hacks are common within Web3, so if a holder’s account is compromised and their assets are stolen by third-party organizations, they will be protected. The compensation value will be the exhibition price of each insured item, meaning holders will be paid based on what the market believes their asset is worth. However, a downside to the advancement is that the maximum value of compensation is 500,000 Yen ($3,661), significantly lower than the majority of blue-chip NFTs. HARTi and Mitsui Sumitomo expect to expand the initiative with both companies stating that compensation limits will increase in the future and policies will be revised, changed, and added.
NFT scams have been a constant issue within Web3. Many companies have refused to enter the space and have cited a lack of security as the main reason. However, HARTi has added insurance to play its part in stepping towards mass adoption. “The theme of safety and security is paramount for encouraging the entry of major Japanese companies into NFTs, including department stores, commercial facilities, and major brands. Therefore, we hope this new service will play a role in the safety of the domestic NFT secondary market.”
While Web3 is the wild west of investments, this is a big step towards asset security and protection in the space.