The huge market of NFTs in Decentraland has moved many business models from the traditional industry to the virtual world. While this metaverse project is still exploring the possible use cases, IMA Financial has recognised an untapped business opportunity. Yes, the US insurance broker would explore the possibilities of implementing an insurance system within the metaverse. This new development in the virtual world could answer some of the fundamental issues found in NFTs.
Decentraland is a blockchain-based metaverse founded by Argentinian developers Esteban Ordano and Ariel Mellich and has been in operation since 2016. Nonetheless, the growth of Decentraland in the last two years has been phenomenal thanks to the onset of NFTs. The project currently houses many of the popular brands, games and other digital products. Every operation, including virtual real estate, is powered by NFTs. Following a 19% weekly growth, the native token MANA’s price stays at $2.50. According to this Decentraland price prediction, MANA’s price has the potential to rise with the growing NFT market.
However, the roughly $40 billion NFT market’s layers of security consist only of programs. Although the NFT projects invest much of their interest in constantly updating their protocols, breaches and digital attacks are increasing at a faster rate. Moreover, the crypto space is witnessing a considerable rise in the rug-pull type of scams. In such cases, the programs would not be able to do anything to protect the assets. Due to such reasons, the US-based IMA Financial is planning to introduce NFT insurance on Decentraland.
According to Paul Washington, Executive at IMA, a growing field like metaverse, which intends hugely on building and developing digital assets, should view its business from a “risk mitigation standpoint.” The introduction of NFT insurance will provide the assets currently valued at millions with an additional layer of security. The firm’s long term goal is to establish an infrastructure for specie insurance negotiation for NFTs. The firm has already built a web3 lab to explore the possibilities of NFT insurance in Decentraland. So, we can expect this new addition in the metaverse very soon.
The times are changing really fast for DeFi, especially Decentraland. A couple of years ago, popular financial institutions hesitated to explore their business in the metaverse. Now, there is huge competition among companies to find and exploit new use cases and business models in the metaverse. IMA’s proposal is solid enough to change the outlook of NFTs in Decentraland. NFT insurance will move these assets into a class similar to fine art, antiques and collectibles in the insurance business. Furthermore, Decentraland will be able to add to this extra layer of security without jeopardising decentralization.