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Bridge Mutual Closes Gap Between Traditional Finance and Digital Finance Insurance

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One of the biggest problems standing in the way of widespread crypto adoption is lack of trust, particularly when it comes to assets on centralized exchanges or complex exploits on decentralized protocols. While it is true that cryptocurrency blockchains are difficult to tamper or manipulate, other services in the space still experience multiple large-scale hacks per month. 

Centralized exchanges are prone to having their funds hacked, stolen, or lost. From the infamous Mt. Gox and FCoin hacks to the most recent KuCoin heist, dark clouds have been cast over the industry for centralized exchanges. These frequent incidents, in addition to the frantically volatile nature of crypto markets, have stopped cryptocurrency from gaining momentum. 

That’s where Bridge Mutual comes in to offer insurance. It aims to give institutional crypto investors a reliable way to offset their investment risks by issuing discretionary insurance against exchange hacks, smart contract attacks, and stablecoin crashes.

How does Bridge Mutual work?

The funds used to insure Bridge Mutual’s policy holders come from stakers who are able to select the stablecoin, exchange, or smart contract that they want to insure. After funds are locked in, they enjoy passive income from investment yields and profit sharing in the system. 

Likewise, the process for purchasing insurance through Bridge Mutual is just as simple as stakeholding. All users have to do is select the stablecoin, exchange, or smart contract they want insurance for. The protocol automatically calculates a premium based on the coverage requested by the user, and the user pays via their wallet. Once paid, the user becomes a policy holder and is able to easily make a claim on the Bridge website.

The Bridge Mutual API constantly scrapes and analyzes price feeds of stablecoins so that the claims process for stablecoin crashes can be settled automatically and instantly. Any smart contract or exchange claims are then processed through a nuanced, three-phase voting system. In a nutshell, this means that claims are voted on by the community and there are incentives and penalties in place to assure that every claim is adjudicated with high accuracy.

Two ways to earn rewards

Anyone who invests in the Bridge Mutual system can earn income in two different ways. One way is to contribute funds to the various insurance pools that Bridge Mutual offers. Once locked in, stakeholders will be entitled to earn profit-sharing rewards and yields. The other way to earn money is by voting on claims. Reliable and trustworthy voters can receive up to 5% of a claim’s premium by voting correctly. 

What impact will Bridge Mutual have on the crypto industry?

As Bridge Mutual points out in its pitch deck, its closest parallel in the traditional financial world is the credit default swap. While it is true that unregulated credit default swap trading was one of the main factors behind the international economic crisis of 2007, most experts agree that credit default swaps generally play a positive role in the economy. 

Since financial instruments of the type offered by Bridge Mutual can allocate crypto trading risks in a more optimal way, they can make the entire industry safer for institutional investors. If institutions were to become less reluctant to invest in crypto projects, the entire industry could benefit as a result.  

Led by a crypto lawyer, a blockchain developer, a former SEC attorney and an executive from Paxful

Bridge Mutual CEO and co-founder Michael Miglio is a partner at the crypto law firm Wolfe Miglio. Lili Feng, CLO at Bridge Mutual, is an experienced commercial attorney that worked at several different investment banks and was a Project Attorney at the U.S. Securities and Exchange Commission. Bridge Mutual’s CTO is Ian Arden, an expert that brings 20+ years of experience in Solidity, C, C++, C#, LAMP stack, JavaScript and Java to the table. Joshua Viser, Director of Institutional Accounts at the peer-to-peer Bitcoin marketplace Paxful, rounds out the executive team with connections to institutional players in the space.

Crypto

BNB Price Surges Past $300, Faces Crucial $339 Hurdle: What’s Next?

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BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.

Binance Coin Outlook

BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.

Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD)  on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.

The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…

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Altcoins

Solana Price Surges Beyond $100, Dethroning Ripple and BNB To Secure Fourth Place

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Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.

SOL Outlook

Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.

The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.

This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…

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Altcoins

Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy

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Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.

Catalysts Behind SOL’s Rally

Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.

The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.

Cited figures provided by DeFi aggregator DeFiLlama

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