Oliver, the founder of the web3 insurance protocol InsurAce, said that in the FTX crash, many institutions suffered heavy blows, but at the same time, many small and medium users also suffered losses, and many users suffered great losses in their life savings.
In the traditional financial industry, there is an insurance infrastructure such as the US Federal Insurance FDIC (Federal Deposit Insurance Corporation), which can provide each depositor with an insurance amount of 250,000 US dollars. Similarly, there is the Singapore Savings Insurance Plan SDIC, which can protect each user. 75,000 Singapore dollars insured. When a financial institution goes bankrupt, the insurance plan will step in to provide such claims coverage for small and medium users.