tl;dr: Seeing is believing in crypto.  One of the strongest memes in the space is “Don’t Trust, Verify.” A look at Nexus Mutual.

So, with that in mind, let’s look at just one example from the leading crypto-insurance company, Nexus Mutual (NXM).

Disclosure: I’ve profiled NXM before and I am a member of the mutual

At the time of this writing, NXM has seen sales quintuple in the last 3 months to $15 million. One year ago, revenues were $250,000. 

The value of the crypto asset behind it has grown more 500% since January.

You don’t have to take my word for it. 

Everything I’ve said is 100% verfiable on the Ethereum blockchain. The same cannot be said for traditional early stage high growth companies.

The upside potential for Nexus Mutual is notable, as the current Total Addressable Market (TAM) in the crypto-finance industry (usually called “DeFi”) is just about $4 billon (at the the time of this writing).

The crypto-finance market itself is experiencing rapid growth. The total value of deposits was just $1 billion in June.

Two years ago, the industry didn’t -and couldn’t- exist.

It’s as if a company’s P/L statement were available online every second of everyday…and you knew for a fact that it was accurate.

DeFi’s stratospheric growth over the past few months is the big story in the crypto sphere and it’s a powerful one. W

e’re basically watching, in real-time, the emergence of a new model for financing public-blockchain based start-ups and projects. 

There are sure to be bubbles and crashes as the markets for lending, borrowing, deriatives, options, and synthetic assets matures and evolves. 

That was true in the South Sea Bubble, which everyone remembers. What they don’t remember is that though this bubble was related to one company, it was the mechanism that mattered. The joint-stock company, has been with us ever since. That was the financing innovation.

Similarly, while names like Compound, Balancer, dydx, Aave, MakerDAO, Synthetix, Curve, and YFI may seem foreign today, in the Crypto Futura, some of them will be as well known as Chase, Citi, HSBC, and JP Morgan.

The innovation in financing is here to stay.

So is the insurance that will come with it.