How FairSide's Market Research Aligns Crypto Insurance Alternative Product with Community Needs

Our industry is shackled by a glaring, alarming void: a complete and total lack of consumer protection.

Rampant personal wallet theft plagues the industry, leaving victims with little to no recourse, and casts a long shadow over the boundless potential of digital assets. Today’s stark reality must be confronted head-on, not sidestepped, if we are to truly unleash the transformative power of Web3.

Being stripped of all your assets is not, and should never be, an inevitable ‘rite of passage’, nor should it be the status quo for a sector that’s revolutionizing the world of finance. The team at FairSide stands firm in our belief that consumer protection isn’t a luxury—it’s a non-negotiable imperative. It provides essential infrastructure for Web3 to thrive.

From our team’s deep engagement with the crypto community, witnessing the urgent necessity for robust protection against personal wallet theft firsthand, we envisioned and built a solution. But before proceeding further, we wanted to gauge the sentiments of the broader crypto community. The response we received exceeded our wildest expectations. After conducting two extensive market research studies*, we’ve discovered that you, our community, resoundingly echo our sentiments: 53% of respondents identified wallet theft and phishing as their top fears, with 89% expressing interest in coverage.

Despite this demand, why do adequate coverage solutions remain scarce? Our research suggests that existing models fail to meet the specific needs of crypto users. A staggering 94% encountered difficulties when trying to purchase crypto coverage, with 35% unaware that such products even exist.

Bolstered by this community feedback, we’re bridging the gap. We’ve developed Personal Wallet Theft Protection—innovatively designed for and by the community to safeguard your digital assets and provide peace of mind.

Allow us to share the hurdles our community faces and how we’re tackling them head-on:

Barrier 1: Specialized Coverage

Around 30% of you highlighted a clear problem: many coverage products only cover certain assets. They only cover certain assets, leaving others exposed. It’s akin to a safety net with gaps, leaving some of your assets exposed. Not really a safety net. In response, we’re introducing blanket coverage, protecting all your assets, irrespective of their names or projects.

Barrier 2: Complexity

Complexity deters 30% of crypto holders. Our simple sign-up process and user-friendly design, applauded by 82% of participants, addresses this issue. We’re committed to helping you safeguard your crypto assets with minimal effort.

Barrier 3: Trust Issues

There were 21% of you who told us that you had trust issues with coverage platforms, especially regarding payouts. At FairSide, we understand that trust is not a commodity to be traded, but a foundation to be built. We’re doing more than just saying we’re trustworthy – we’re demonstrating it. To that end, we’ve brought onboard industry-leading partners and top-notch security teams to vet every case thoroughly. Our commitment? If you have a claim, it’s processed fairly and promptly. For smaller cases, we’re looking at a payout timeline of just 48 to 72 hours. At FairSide, your trust is earned, never assumed.

Barrier 4: Affordability

Affordability is a concern for 25% of users. Initially, we proposed a lowest-tier pricing model at a 2% cost for all assets. The response from the community who stated they were ‘very likely to buy’ the FairSide membership was overwhelmingly positive, with 95% expressing a high likelihood of purchasing coverage at this price. Building on this momentum, we have further fine-tuned our pricing strategy to offer a competitive rate of 1.95% for all assets.

Our Strides and the Path Ahead

We’re not just listening to your feedback, we’re acting on it, and we’re excited to share what we’ve accomplished together:

From our November survey, a whopping 82% found our coverage structure clear and simple. We also take pride in the fact that 77% of participants believe our offerings align with their needs. Furthermore, 82% recognized our distinctiveness in the industry.

Most impressively, when asked about any potential drawbacks, 62% responded, “nothing”.

As we shape the future of decentralized blockchain coverage, the results of our market research continue to affirm our strategic alignment with your needs. This validation fuels our resolve to evolve and to cultivate a brand that cherishes its community. As a Web3 company aspiring to become a fully decentralized autonomous organization (DAO), we’re embracing a new paradigm of operations. It’s not just about resisting predatory practices and championing the values of fairness and transparency—it’s about shifting the balance of power to the hands of the community. At FairSide, we don’t see you as merely consumers of our services. You’re our partners in this transformative journey. As we plan to eventually transition towards a DAO, we recognize each one of you as a stakeholder with the power to influence our direction. Together, we’ll revolutionize the landscape of decentralized blockchain coverage, fostering a future where trust, security, and empowerment flourish, driven by a truly democratic and decentralized model of governance. Join us as we advance on this path, making history along the way.

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*Our November 2022 research targeted 1,001 cryptocurrency owners in the USA. In contrast, our March 2023 sample had a broader scope, with 1,881 respondents, a significant portion of whom hailed from South East Asia. Full surveys, including detailed demographic breakdowns are available below.