Wert's co-founder and CEO claim that NFT warranties could "provide a sense of security and trust" in the Web3 industry.
The growing number of hacks and exploits in the Web3 arena has intensified the need for digital asset security. To address this concern, Web3 payment provider Wert has collaborated with InsurTech service Avata to launch a non-fungible token (NFT) warranty service.
This innovative solution aims to strengthen asset security for existing and potential NFT collectors.
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According to the announcement, the NFT warranty service will cover up to 90% of a digital collectible's value in case of a smart contract breach.
Wert's co-founder and CEO, George Basiladze, argues that such a solution could help close the trust gap and provide crucial protection for collectors.
<NFT warranties> will provide a sense of security and trust, which will encourage more non-native crypto users to join the Web3 space with minimal risk, making it more appealing to a broader audience.
The warranty service is set to be accessible on almost 80 digital asset marketplaces, including OpenSea. Basiladze highlighted that the fee for NFT protection would account for around 6% of the asset's cost at checkout. Moreover, the coverage will be based on the purchase price instead of the current market value.
Wert's co-founder assumes that by offering a service that guarantees a certain level of protection against theft and hacks, the mass adoption of NFTs and Web3 technologies can grow significantly.
Overall, any consumer looking to get into the NFT space wants to protect their money invested and by offering them that sense of security, they can engage in Web3 on a deeper level with reduced risk.
Basiladze also noted that high-value NFTs, typically acquired by serious investors more concerned about security than average collectors, are particularly suitable for warranties. Therefore, he believes that NFT warranties would make the industry "more open to professional collectors and investors."
Therefore, as digital asset users increasingly prioritize security, NFT warranty services like the one introduced by Wert and Avata could help bridge the trust gap and stimulate the mass adoption of NFTs and Web3 technologies.
A recent report found that the majority of surveyed NFT holders have collections of more than 50 digital collectibles.
