Bridge Mutual is a new insurance platform, completely decentralized and designed for those who want to offer or receive insurance on innovative assets such as stablecoins (cryptocurrencies that are pegged to the dollar and never change in price), smart contracts, centralized exchanges and so on. This product is like many others already on the market (Cover, Polkacover, Nexus Mutual), and was launched a couple of days ago through an IDO on the popular PolkaStarter. Let’s have a closer look at it!
Why Bridge Mutual?
As is well explained in the FAQ section of the Bridge Mutual website, cryptocurrencies are a new asset that needs more security. Over the years, many cryptocurrencies and exchanges have fallen victim to hackers looking to make a quick quid. Going back in time, we can remember Mt.Gox, the exchange that at the time of the hack handled almost all Bitcoin transactions in the world. Mt.Gox was hacked and the price of Bitcoin suffered losses of 70-90%.
But there have also been hacks in more recent years, such as the Bitfinex hack (for half a billion dollars) and the KuCoin hack (also for hundreds of millions of dollars). When it comes to smart contracts, hacks are the order of the day. One of the biggest in the world was the hack against The DAO, a much-anticipated project that failed before it was released precisely because of hackers.
Finally, even stablecoins can often have issues and Bridge Mutual tries to solve this problem. Since we are talking about an industry that has only been around for a few years, security must be increased considerably in order to achieve the much talked about adoption and interest from institutions (interest that is already coming thanks to Grayscale, PayPal and other big names that have just entered the crypto world).
A demo of the project and the application that will be used to offer or request insurance is already available on the official website. The software should be ready in a few weeks, once it has been reviewed by reputable companies who will have to do several audits before it can be released to the public. However, considering that the Bridge Mutual project has respectable backers and a public team (which is very rare in crypto), great things are expected!
To solve all these problems and offer insurance, Bridge Mutual is governed not by its own founders or devs but by the entire community, thanks to a governance system known as a DAO. In order to participate in this governance and decide the fate of the project, all it takes is to purchase the governance token launched a few days ago: BMI.
The $BMI token by Bridge Mutual
The BMI token, created a couple of days ago, has a maximum token supply of 160,000,000. It was first launched on PolkaStarter (where a lucky few were able to get the token at 0.125 cents per token) and then on Uniswap (where the price immediately jumped to 0.80 cents, then to $2 and remains stable even today). The market cap at the moment, taking into account the cash in circulation, is quite low while the fully diluted marketcap is over $320 million.
Although these numbers might seem high at the moment, remember that classic insurance is one of the most lucrative sectors in the world, so if cryptocurrencies were to be used by the whole world in the not too distant future, these numbers are likely to be 10-100-1000 times lower than the numbers we will see in the future! To follow the BridgeMutual project or the price of the token we recommend the Telegram chat or the CoinGecko page.