Cover Protocol crashes 40% after the decision to part ways with Yearn Finance as both protocols announced today so let’s read more in our latest altcoin news.
Both Cover Protocol and Yearn Finance announced that the merger process between them is coming to an end and the breakup resulted in Cover Protocol crashes 40%. Back in November 2020, YFI founder and one of the most influential people in the DeFi space, announced that they will join forces with the market coverage provider Cover Protocol but today, the team announced an end to the merger:
“We have decided to end the previously announced merger process of Yearn and Cover. Both protocols will continue to operate independently. yVault depositors who have previously purchased Cover protection are unaffected by this.”
In a deleted tweet, Cronje said that “this was very sad to see. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won’t trust them again.” Shortly after however, he said:
Deleted my previous tweet. It was an emotional response. Twitter isn’t the place for that. I often forget ethics and money don’t mix.
— Andre Cronje (@AndreCronjeTech) March 5, 2021
the team behind the Cover Protocol hasn’t provided any comments on the matter at the time of writing but said that they only parted ways with Yearn while saying that the users can still buy YFI coverage on the Cover Protocol. COVER’s price had an impressive run so far as its price increased from $380 at the start of the year to an all-time high of $1700 in two weeks’ time. Since then, it’s been mainly downhill from there. However, the news of the breakup took a toll on Cover’s dollar value and the cryptocurrency is now down by 40% at the time of writing.
Also, as recently reported, A suspected hacker exploited the Cover staking protocol and inflated the token supply by printing more than 40 quintillion coins. In a surprising move, the suspected attacker returned the funds with a note:
“Next time, take care of your own shit.”
In the initial exploit, the attacker managed to liquidate over 11,700 coins on the 1inch Decentralized exchange aggregator inflating the supply of the token according to the ETH wallet explorer Nansen. The malicious actor drained more than $5 million from the project as of press time. According to the Cover Protocol team, the issue affected the token supply with the funds held in the claim/no-claim pools are still safe.
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