CNA Insurance excludes NFTs from coverage of $20M trust policy
CNA Financial, the seventh-largest commercial insurer in the United States, has excluded nonfungible tokens (NFTs) coverage from Schwab Strategic Trust’s policy worth $20 million. In a filing submitted to the U.S. Securities and Exchange Commission, the insurer attached an exclusion to the document, mentioning that the bond does not cover any “loss, damage, claim, occurrence, or suit related to NFTs.” With the section attached to the policy, any losses related to NFTs will not be covered by the insurer. NFTs gained popularity in the bull market of 2021, with various celebrities and companies jumping on the trend. However, a couple of years later, NFTs showed a steep decline in terms of their prices and trading volume. On Aug. 3, NFTs showed a drop in terms of gas usage, signaling a shift in the landscape. Despite the drop in interest in NFTs, some celebrities and businesses continue to dive in. On Sept. 4, soccer star Cristiano Ronaldo said that he planned to release more NFTs in the future while being put through a lie detector test. The lie detector test was done to celebrate the launch of his second NFT collection with crypto exchange Binance.
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