An “overwhelming” number of attacks has forced InsureX to stop its token sale just two days after launching.
A report by
CryptoCoinsNews said the start-up was the first blockchain-based marketplace to be used for trading and managing insurance products. However, last week’s crowdsale was abruptly halted due to security attacks.
“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,” said InsureX, as quoted by the report.
Here’s the good news: InsureX reportedly has enough funding to execute its plans even with the short-lived sale. The aim is to offer a fully electronic and secure exchange for transferring confidential documents and data such as medical records and financial information.
“The project hopes to transform a sector that is currently encumbered by the slow bureaucracy of legacy systems,” said the company when it announced the token sale in June. InsureX operates as a Software as a Service (SaaS) platform and runs on the Ethereum blockchain.
The firm said traditional or manual channels introduce cost, as well as process delays and errors. “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,” said InsureX chief executive Ingemar Svensson.
“Blockchain technology presents an exciting opportunity to disrupt the insurance industry,” noted Svensson. According to the start-up, the use of blockchain technology will streamline the downstream processes for policies, premiums, and claims.
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