- Cover throws in the towel after a long struggle
- Investors urged to withdraw funds
- The collapse follows a 2020 minting hack
The Ruler & Cover DeFi protocol insurance service has officially been laid to rest. “The decision to do this did not come easy and is a final decision the remaining team made after reviewing the path forward after the core developers suddenly left the projects,” – DeFi Ted. He also urged investors to withdraw their funds from the protocol as soon as possible.
Since the announcement, the Cover token has lost $45 in value, moving to $224 from $269. As traders struggle with the news, the trading volume has gone up to $19 million from $3.5 million.
Cover is a decentralized marketplace for investors that was created a year ago in DeFi protocols. It was a service that offers users cover against DeFi protocol hacks, exploitations, or rug pulling.
The collapse of Cover should come as no surprise after the December 2020 minting hack that left customers uncovered and investors at a loss. While the hacker returned the stolen 4350 ETH, the hack caused a 96% drop in the value of the Cover token.