P2P Insurance Marketplace Cover Protocol Shuts Down

Cover Protocol (an insurance marketplace based on a peer-to-peer sharing system), under the Innovation Zone of Binance, shuts down following the exodus of its central developers. An announcement of “shutdown” was posted by the blog on the authorized Twitter handle of Cover Protocol. The blog mentioned that it was not an easy task to take such an extreme decision. However, after many struggles, the team has decided this as all the chances were closed due to the sudden exit of the primary developers of the project.

An extensive and steady process to re-stabilize the operations was triggered after a hack fell on the firm in the last year. The decision was therefore taken to put a stop to such a situation. “DefiTed” expressed on the blog that it was disappointed on knowing that the development group was at once leaving the program, particularly at such a time when there is a possibility for doing some mutual work for constructing the latest protocols in complete accordance with their vision.

The aforementioned program was hacked on December 28th, 2020, and the hacker was successful in duplicating the local COVER token along with swapping those for WBTC, DAI, and ETH, to collect up to $4 million in cryptocurrency. Nonetheless, even though the hacker (as he was a white hat) paid the money back, it was unable for the project to move further as it lacked a strong basis for doing so.

It is noteworthy that this attack was not something latest for the projects based on BSC (Binance-Smart-Chain). Multiple attacks had been witnessed by it on its DeFi programs during the last few months. One of them occurred in July on the projects which the Chainswap was hosting. The attack caused millions to be lost. In the meantime, in May, JulSwap (JULD) and BurgerSwap (BURGER) underwent flash-loan-attacks, due to which approximately $7.2M vanished. Responding to this, BSC had stated that such attacks were organized and targeted.

Moreover, Chanpeng Zhao (the CEO of Binance) had also commented on this. He pointed towards the recent hack of Poly Network in which an amount of roughly $611 million was lost and said that there is no surety for anything to be secured. He additionally expressed that a joint suspension should be put on the assets that were stolen by the hackers. Notwithstanding the efforts of the exchanges to prevent such actions, the consumers are still at risk, as is evident by these DeFi hacks.

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