Insurance giant excludes NFTs from $20m policy

What happened:

CNA Financial, one of the largest commercial insurers in the US, has decided not to cover nonfungible tokens (NFTs) in a policy worth $20 million. The exclusion was included in a filing submitted to the US Securities and Exchange Commission (SEC).

Details of the exclusion:

The filing specified that the policy does not provide coverage for any "loss, damage, claim, occurrence, or suit related to NFTs." The document defined NFTs as "any unique digital identifier connected to any digital ledger technology which may be used to certify authenticity or ownership of anything." This means that any losses related to NFTs will not be covered by the insurer.

Cryptocurrency vs NFTs:

While NFTs are excluded from the policy, the document clarified that "cryptocurrency" is not included in its definition of NFTs. This means that the policy does provide coverage for cryptocurrency-related losses.

The rise and fall of NFTs:

NFTs gained popularity in 2021, with celebrities and companies embracing the trend. However, their prices and trading volume have declined significantly since then. On August 3, NFTs showed a drop in gas usage, signaling a shift in the landscape.

Celebrities and businesses still interested:

Despite the decline in interest, some celebrities and businesses are continuing to explore NFTs. Soccer star Cristiano Ronaldo, for example, plans to release more NFTs in the future. Recently, he took a lie detector test to celebrate the launch of his second NFT collection with crypto exchange Binance.

Lufthansa introduces NFTs to loyalty program:

In addition to celebrities, companies are also incorporating NFTs into their offerings. Lufthansa, for instance, recently launched an NFT app that allows users to scan their boarding passes to redeem NFTs. These NFTs can then be used for rewards like flight upgrades or lounge access.