Cover crypto to shut down. What happens to token holders now?

Highlights

  • Cover protocol reported to shut down its project on 5 September after its core development team suddenly left the project.
  • All token holders would be compensated from its treasury on block number 13162680.

The cryptocurrency space has been buzzing this year after Bitcoin touched new highs. However, it is a very unpredictable and volatile market.  An example of that is Cover protocol, a DeFi crypto that has been making news recently due to the project shutting down its operations.

Cover protocol is a decentralised finance insurance cryptocurrency which has been built on the Ethereum blockchain.

Cover protocol’s price performance

Cover protocol, whose governance token is COVER, is trading at US$ 328.13, up by 124.85 per cent in the past 24 hours as of 14 September. It has a market cap of US$ 25,825,771, and its total volume is at US$ 98,639,543, up by 1832.44 per cent in the last 24 hours.

It is up by 120.40 per cent from its all-time low, which it reached yesterday, on 13 September, at US$ 144.72. COVER has a market rank of 708 as of today.

What happens now to COVER token holders?

COVER reported earlier this month that it plans to shut down the cryptocurrency project as its core developers suddenly abandoned the project. One of Cover protocol’s core contributing team members, DeFi Ted wrote a blog post on 5 September, thus informing the public.

According to the blog post, the remaining team have agreed to evenly distribute the project’s treasury funds to COVER and also RULER token holders.

Ruler protocol is another DeFi app focused on lending and borrowing which was developed by the same team.

The compensation will be made on block number 13162680 to all token holders and will be considered as a credit payout.

The coin had earlier suffered a major white hat hacking incident in December 2020, which resulted in up to 40 quintillion COVER tokens being stolen and then eventually returned.

But the incident shook the trust and faith in the coin, consequently causing its merger with DeFi yield optimiser platform Yearn Finance to end in March this year.

Bottom Line

The cryptocurrency and DeFi space can offer crypto enthusiasts exciting and huge returns with the right investment, but one must also look at a digital asset’s core team experience and project roadmap to ascertain the longevity and viability of the project, as can be seen from the shutdown news of COVER.

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