Cover Minutes: Price drops 97 percent due to hack
Cover, a peer-to-peer platform in the DeFi space, has been hacked.
A suspected hacker has outsmarted the staking protocol cover and catapulted the token offer into inflation by printing over 40 trillion „coins“ .
Surprisingly, the alleged attacker gave the money but with a message back :
„Next time you take care of your own business.“
In the hack, the attacker initially liquidated over 11,700 coins on the decentralized exchange aggregator 1inch after inflating the token offer according to data from the Ethereum wallet explorer Nansen . In total, the hacker had stolen over $ 5 million from the project by the time we went to press.
Cover Protocol addressed the incident in a message on its Discord group, stating:
„The Blacksmith farming contract was hacked in order to mint an infinite number of $ COVER tokens. We have restricted access to coins on the farming contract to stop the attacker. If you offer liquidity for $ COVER tokens ( Uniswap or Sushiswap), please remove them immediately. “
According to the Cover Protocol team, the problem only affected the token offering. Money held in claim / noclaim pools is still safe. The project says it is investigating the incident.
The attack caused a massive drop in the COVER token price. It fell more than 97 percent while earning negative comments from the crypto community. Back in November, Cover was one of the DeFi protocols that merged with Yearn.Finance .
Cover is the latest victim of opportunistic, for-profit attacks against numerous protocols among the DeFi projects in a malicious hack this year.
As Cointelegraph reported, the mass of DeFi hacks over the course of the year is one of the biggest disappointments in the crypto space for 2020. However, data manipulation is considered easy to do in many projects.