Listed in Binance’s Innovation Zone, Cover Protocol, a peer-to-peer insurance marketplace that closed after its main developers left. The blog published in Cover Protocol official Twitter identifier, announced the “closure”. As mentioned in the Blog,
“The decision to do this was not an easy one and is a final decision made by the remaining team after reviewing the way forward, after the main developers suddenly abandoned the projects.”
The decision to shut down came after a long and tedious process of trying to stabilize operations, after it was hacked late last year. “DefiTed” posted on the blog,
“I personally want to say that I was extremely disappointed to learn that the development team was leaving so suddenly, especially given the time we spent together developing the protocols and following the vision they had.”
The aforementioned project was attacked on December 28, 2020, in which the hacker managed to duplicate the native COVER token and exchange them for ETH, DAI, and WBTC, resulting in a loss of $ 4 million in crypto. However, although the “white hat” hacker returned the funds, the project could not find a solid foundation to move forward.
It is important to note that such an attack was not new for Binance Smart Chain (BSC) -based projects. He saw several DeFi projects being attacked in recent months. One such attack took place in July on projects hosted on the Chainswap protocol that resulted in a loss of millions.
Meanwhile, in May, BurgerSwap (BURGER) and JulSwap (JULD) suffered urgent loan attacks, losing about $ 7.2 million to the attack. At that time, BSC had issued a statement that these were targeted and organized attacks.
What’s more, Binance CEO Chanpeng Zhao had said, “nothing is certain,” while speaking of the recent Poly Network hack that lost nearly $ 611 million. Zhao also said that assets stolen by hackers should be jointly frozen. While the exchanges were interested in increasing security measures to deter such acts, users still remain at risk due to the recent increase in DeFi attacks.
This is a machine translation of our English version.
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