Insurance Blockchain Startup InsureX Halts Crowdsale due to Security Attacks

Posted in: Archive
July 14, 2017 5:45 PM UTC

InsureX has announced that due to security attacks on its system it has halted its crowdsale with immediate effect, two days after starting its sale.

Founded in 2017, the London-based insurance blockchain startup had only launched the opening of its ICO crowdsale on the 11th July, becoming the first blockchain-based marketplace to be utilized for the trade and management of insurance products.

However, on the 13th July, the company announced that because of security attacks on its system over the last two days they had decided to stop the sale.

InsureX said:

This action is not taken lightly but is necessary to protect existing IXT holders and stakeholders of InsureX. We have been working around the clock to keep the token sale open, but the sheer number of attacks is now overwhelming.

Last month, a press release from InsureX stated that the company were working toward changing a sector that is hindered by slow bureaucracy of legacy systems. The launch of the token sale was designed to help raise funds for the development and launch of the platform.

At the time Ingemar Svensson, CEO, InsureX, said:

Blockchain technology presents an exciting opportunity to disrupt the insurance industry. At InsureX we want to set a new precedent for the way products are bought and sold through a blockchain-based marketplace that will add greater speed and security to the process.

However, even though the crowdsale has come to an early end after two days, the company also said that they have received enough funding to execute their roadmap.

The company added:

We are look forward to launching the first blockchain marketplace for insurance and have an new partnership announcement coming soon.

While the company didn’t specify anything more in relation to the nature of the security attacks this may give investors some cause for concern. Whether the company releases any further information regarding this remains to be seen; however, the company seems keen to produce a streamlined platform where individuals can access a range of products and lowered commissions.

Featured image from Shutterstock.

Last modified: May 21, 2020 9:40 AM UTC

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