CNA Financial, one of the largest commercial insurers in the United States, has made a significant decision regarding nonfungible tokens (NFTs). The company has excluded NFT coverage from a policy worth $20 million provided by Schwab Strategic Trust. This move was revealed in a filing submitted to the US Securities and Exchange Commission (SEC), which included an exclusion stating that the policy does not cover any losses, damages, claims, occurrences, or suits related to NFTs.
The filing defines NFTs as “Any unique digital identifier connected to any digital ledger technology which may be used to certify authenticity or ownership of anything, including but not limited to any digital, tangible, or intangible item, but cannot be substituted or exchanged for any similar item.” This means that any losses related to NFTs will not be covered by the insurer. However, it’s important to note that the exclusion does not apply to cryptocurrencies, which are not included in the definition of NFTs.
NFTs gained significant popularity during the bull market of 2021, with many celebrities and businesses jumping on board. However, in recent years, NFTs have experienced a decline in prices and trading volume. On August 3, there was a noticeable drop in gas usage for NFTs, signaling a shift in the landscape.
Despite this decline, some celebrities and businesses are still involved in the NFT space. Soccer star Cristiano Ronaldo recently stated that he plans to release more NFTs in the future, as he underwent a lie detector test to celebrate the launch of his second NFT collection with crypto exchange Binance.
In addition to Ronaldo, Lufthansa, an airline, has recently implemented NFTs into its loyalty program. The company launched an NFT app on August 31, allowing users to scan their boarding passes to redeem NFTs. These NFTs can then be used to earn rewards such as flight upgrades or lounge access.
While NFTs may have experienced a decline in interest, it is clear that there are still celebrities and businesses who see value in this space. However, CNA Financial’s decision to exclude NFT coverage from its policy highlights the potential risks associated with these digital assets. As the NFT market continues to evolve, it remains to be seen how insurers and other stakeholders will navigate the challenges and opportunities presented by this emerging technology.
Sources:
– NFTs and Why They Are Revolutionizing the Art World: [Link](insert hyperlink)
– US Securities and Exchange Commission filing: [Link](insert hyperlink)
– NFT Gas Usage Shows Downward Trend, Signals Shift in Landscape: [Link](insert hyperlink)
– Ronaldo Teases NFT Plans While on a Lie Detector Test: [Link](insert hyperlink)
– Polygon NFT: Lufthansa Airline Launches NFT Loyalty Program on Polygon: [Link](insert hyperlink)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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