The decentralized finance project “Cover Finance” was subjected to a hacking operation that greatly affected the price of the digital currency “COVER” and made it fall freely from the price of $800 to $6 at the time of writing this article.

The sudden drop in the price of the digital currency “COVER” led to a significant loss in the portfolios of investors in the currency.

Holders of the “COVER” coin and users of the “Binance” platform have news that may relieve them somewhat, as the Binance platform announced yesterday that it will allocate more than 10.1 million dollars to compensate its users who were affected by the recent hack of the “Cover Finance” project.

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to compensate a total of $10,107,505 (distributed across 8,171,634.10 BUSD and 2,581.16 ETH) to affected and eligible users.

short topic…

– CZ Binance (@cz_binance) December 31, 2020

Binance announced the compensation as follows:

In addition to the compensation plan from the “COVER” team, Binance will use its insurance fund to compensate the amount of $10,107,505 (distributed as 8,171,634.10 BUSD and 2,581.16 ETH) to affected users who qualify for compensation.

The decentralized finance project “Cover Finance” hack:

Cover Finance is a decentralized finance project that offers a peer-to-peer insurance marketplace that allows users to purchase protection and insurance against the risks of DeFi projects being hacked.

Ironically, the project itself fell victim to a hack.

By exploiting a technical loophole in the project’s protocol, the hackers were able to create huge amounts of counterfeit cryptocurrencies and use them to retrieve the original cryptocurrencies, which they then dumped and sold on exchanges, causing the value of the coin to collapse.

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After a period of time announce Another decentralized finance project called “Grap Finance”, they are the ones behind the attack on “Cover Finance”, and they returned the money to “Cover Finance”.

The return of the funds was accompanied by a violent letter recommending more attention to the project.

Next time, take care of yourself.Tweet embed Tweet embed

1. No gains.
2. The money obtained from the LP was returned to COVER.

– Grap.finance (GrapFinance) December 28, 2020

Thus, the “Cover Finance” project came out with the least damage and did not lose money, but its digital currency “COVER” lost its value by 100%.

especially “CZ” CEO of Binance platform, what happened with the “Cover Finance” project is as follows:

COVER smart contract hacked.

Lots of users lost a lot of money.

Tell the project team that they cannot cover the losses.

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For our part, we made a simple decision, where we will use our money to cover the losses of our users, as we have allocated 10 million dollars for this.

After Binance announced the compensation process, it appeared that a large number of Binance Cano users were affected by the decline in the value of the cryptocurrency COVER.

Binance has taken a snapshot of all wallet balances affected by the coin, and the new COVER will be distributed in a one-to-one ratio with the old coin.

1 old cover 1 = new cover

It is not yet known whether Binance will reopen the trading of the new “COVER-new” digital currency or not.

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