DeFi insurance provider Cover is shutting down after the development team that serviced them both abandoned the projects.
September 6, 2021, | AtoZ Markets – A decentralized finance (DeFi) protocol called Cover is shutting down. The developer under the pseudonym DeFi Ted announced the closure of the cover Protocol peer-to-peer insurance market.
The announcement says that the decision is due to the “sudden” breakup of the team. Why the developers left the project remains unknown.
“After discussing with the remaining team and finalizing plans moving forward it made sense that the remaining treasury funds be evenly dispersed to token holders,” the announcement says.
The Ruler protocol lender is also shutting down. According to reports, the last distribution of tokens will take place at block #13162680. The founders of the project, as noted in the announcement, will not take part in the distribution of tokens.
Cover price crashes
The author of the statement recommended that users withdraw assets as quickly as possible. Against the background of the news, the price of the native token of the COVER project fell by almost 28% to $220. Market capitalization shrank to $17.4 million.
As users suggested, the project was closed due to a series of incidents. For example, in December 2020, an unknown person stole $3 million from the Cover protocol. According to unofficial reports, the attacker took advantage of an infinite mining vulnerability on a reward contract.
However, later the hacker nevertheless returned all the stolen funds. At the same time, Binance announced plans to spend $10 million to compensate for losses to users of the COVER token. A little later, yearn.finance announced the termination of its plans to merge Yearn and Cover altogether. What exactly then became the reason for the breakdown of the partnership is still unknown.
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