The cryptocurrency market is among the most rapidly growing sectors of the global economy. Representing over $200 billion USD in value.
As the cryptocurrency market expands new threats have arisen including scam projects and also hacking incidents on cryptocurrency exchanges.
Hacking erodes confidence and represents the main threat to the value of cryptocurrencies. Efforts to refund investors for damages by some hacked exchanges have been slow, leading to uncertainty about how long repayment processes take. Incodiums coin INCO was designed to fill this gap. Over $650 million USD was stolen in the first quarter of 2018 alone. Making this year — by far — the worst for crypto losses in terms of assets stolen.
Incodium provides a rational way for investors to cope with the threat of exchange hacking by providing a ‘smart compensation protection’ service for eligible victims.
Incodium is a decentralized blockchain based solution built on the Ethereum platform and represents a solution that is simple, actionable and transparent.
The mission of Incodium is to leverage blockchain technology to create a safer environment for the everyday cryptocurrency investor, one where blockchain and other new tech innovations are free to positively impact the world and everyday life.
In order to benefit from Incodium’s first solution — smart compensation protection — you must be a hacking victim who owns Incodium coin and stores the coin in the Incodium mobile wallet app. The Incodium Mobile Wallet is a decentralized application (DApp). After installing the DApp on your smart device, the log-in screen prompts and guides users through the membership registration process. A minimum requirement is that a registrant provides an email address, password, phone number and date of birth, and that the registrant’s information is the same as that found on eligible exchanges, for the purposes of verification and to approve any potential compensation claim.
All cryptocurrency damages incurred in the event of an exchange hacking incident on an exchange where Incodium coin is listed.
The compensation awarded will be the lower of these three figures:
30 times the amount of incodium coin owned
The actual damage
Incodium coin amounting to the compensation amount is sent to the Incodium Mobile Wallet App. Because the Incodium coin balance can easily be confirmed through the Mobile Wallet App, minimal time is needed to carry out compensation procedures. At the heart of this project are automated smart contract functions.
Reporting a Hack
Hacks can be reported via the Incodium Mobile Wallet App. Additional personal information will be required at this point as well as specifying the size of the losses incurred and confirmation of the facts of the incident. This information is held in a separate secure database configured by Incodium and is deleted after compensation is paid. In the event insufficient information is provided the client will receive a request for further information through the mobile app. When these requirements are met and the information verified, the compensation will be paid.
The public sale of INCO coins completed on the 27th of August and the team are now in the process of getting the coin listed on exchanges.
November will see them launch on Ethereum’s Mainnet and the release of the Incodium Mobile Wallet in beta.
It is expected that the Incodium Mobile Wallet App v1.0 will be released in June 2019.
An Example Case
Imagine an exchange used by an investor who owns Incodium coin in an Incodium Mobile Wallet App is hacked and the user has losses totalling $8000 USD. Let’s assume that 1 INCO has a value of $0.30 USD. Lets also assume the investor is holding 1,100 INCO ($330 USD).
The compensation amount is calculated within the agreed compensation limit.
30 times the amount of Incodium coin = $9,900 USD.
The actual hacking damage is $8,000 USD
The compensation would in this circumstance be 26,667 Incodium coins which corresponds to a compensation amount of $8000 USD would be deposited into the users Incodium Mobile Wallet App. The figure of $8000 USD was chosen as it was the lower out of the three methods of calculating compensation.