DeFi Cover Protocol Hacked, COVER Price Fell 80%, Binance halts trading!

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DeFi Cover Protocol Hacked, COVER Price Fell 80%, Binance halts trading

A new DeFi protocol in turmoil, Cover Protocol has seen the COVER price drop by 80% following the revelation of an exploit of its protocol.

Coinmarketcap even indicates a 90% drop in the COVER price!

cover price falling

The Cover team is investigating the hack as indicated on its Twitter account.

YouTuber Ivan on Tech was one of the first to reveal an exploit of a security flaw in the Cover protocol.

According to the information available, a hacker managed to exploit an infinite token issuance bug via a Cover smart contract.

ledger nano x

The hacker allegedly issued fake COVER tokens which he then put into liquidity pools through Balancer, thereby staking BPT tokens and then withdrawing real COVER tokens.

Following these events, the crypto exchange Binance announced the immediate suspension of deposits as well as trading of the COVER token on the trading interface in order to protect users.

There is still little information on this matter and Binance therefore prefers to take the lead by stopping trading of this token which is listed on its trading platform.

We therefore have to wait for more information from the Cover Protocol team in order to learn more about this new hack of a DeFi protocol, which is surely not the last.

The DeFi decentralized finance industry is booming, with many protocols that are not always audited from a security point of view and are at the mercy of hackers looking for loopholes in smart contract protocols in order to steal cryptocurrency.