Cover Protocol Exploited: The DeFi Token Plunged 80%

There has reportedly been yet another DeFi exploit, which resulted in massive declines for its native token. This time, the victim was Cover protocol, and its COVER token crashed by almost 80% on Binance within minutes.

COVER has tanked by almost 80% before recovering to its current trading price. Regardless, the cryptocurrency is still down more than 50% from today’s high.
Cover Protocol Exploited: The DeFi Token Plunged 80%
COVER/BUSD. Source: TradingView

 

The team behind the protocol has so far failed to provide any explanation for the crash, which seems untypical, to say the least.However, members of the cryptocurrency community, including influencer Ivan on Tech, have revealed that the protocol has been exploited.According to another user, what transpired was the following. Someone minted fake tokens, provided liquidity through Balancer, staked the resulting BPT token, and unstaked real COVER tokens. In essence, the hacker has managed to exploit an infinite minting bug on the incentives contract.This is far from the first exploit in recent months as more and more DeFi projects continue to fall victim to hackers.As CryptoPotato reported earlier this month, Warp Finance also got exploited through a flash loan attack where the perpetrator made away with $7.7 million.Additionally, Binance has announced that it will suspend COVER trading following the exploit.Title: Cover Protocol Exploited: The DeFi Token Plunged 80%
Sourced From: cryptopotato.com/cover-protocol-exploited-the-defi-token-plunged-80/
Published Date: Mon, 28 Dec 2020 13:44:38 +0000

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Clint Lewis

Clint Lewis –Business I am Clint Lewis I have finished my four-year college education in English writing and I hold a master’s degree in Business from Stanford University. Writing about business and finance is in great interest. I have great command overwriting due to my five-year experience which incorporates articles, web substances, and web journals. I generally love to play with work, in both my profession and education.  I additionally had teaching experience of 2 years at the eminent college to show business and specialized composition and presently, I am working as an educator and preparing writer and creator. I am unimaginably social, and I love to travel and investigate the world.

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