DeFi project Cover Protocol nearly went bankrupt
The hacker found a vulnerability in the Blacksmith smart contract and issued over 40 quintillion additional tokens. Then after enjoying the chaos created, he returned the funds with an offensive comment
At the time of the hack, the project team was inactive. The developer of the Yearn.Finance platform, to which the token was added in November, said that they just overslept the event.
The hack did not affect the performance of the project, but only brought down the cost of the COVER token. In the morning, the native token was trading at $850, and after the incident, its price dropped to $25. Thus, the coin fell by 97%.
Cover appears to be the last Defi project to be hacked this year. 2020 was rich in various hacks and hacker attacks. We hope that 2021 will be more favorable to investors and developers.