Binance has just announced that it is delisting the Cover Protocol token (COVER) and its associated trading pairs COVER/ETH and COVER/BUSD. The announcement comes as part of an ongoing troubled phase for Cover Protocol.
Cover Protocol has had a troubled time recently, with the protocol being hacked in 2020, Yearn Finance canceling their partnership, and several important devs and team members leaving the protocol.
The Binance Announcement
Binance announced on its website that it would be delisting and ceasing trading on all trading pairs for the Cover Protocol’s COVER token from 2021-09-24 08:00 (UTC).
Binance will also be removing the trading pairs COVER/ETH and COVER/BUSD. Binance will carry out an automatic settlement, following which it will cancel all pending orders before delisting the COVER/BUSD isolated trading pair on 2021-09-22 08:00 (UTC).
Binance also stated in their announcement that withdrawals of COVER from Binance will be supported until 2021-12-24 at 08:00 (UTC), and any deposits of COVER made after 2021-12-24 08:00 (UTC) will not be credited into trading accounts.
Binance regularly conducts reviews of each digital asset that they list on their exchange. If a token does not meet the required standard, then Binance delists the token in question for the safety of its users. The team at COVER had announced the shutdown of the COVER and RULER protocol projects on 2021-09-05.
Core Developers Abandon Project
Core contributor DeFi Ted announced that the Cover Protocol is stopping all support and development after core developers parted ways with the protocol. The COVER token plunged by 16% following the announcement as COVER token holders scrambled to sell their tokens and exit. At the time of making the announcement, COVER had a market capitalization of $21 million, and within hours of the announcement, the token value fell from $269 to $220.
The Yearn Break-up
Back in March, Yearn Finance had announced that it was ending its partnership with Cover Protocol. Yearn Finance announced the termination on Twitter, with Andre Cronje from Yearn Finance publicly expressing his disappointment. Yearn Finance and Cover protocol had partnered back in November, with the Cover protocol becoming Yearn’s backstop coverage provider, offering users reduced risk. While no official reason was given for the termination, it is highly speculated that it was due to the 2020 hack. Speaking of which...
The 2020 Hack Of Cover Protocol
The Cover protocol suffered a significant hack in 2020 when an unknown hacker tricked the protocol into minting 40 quintillion tokens. The hacker then cashed out the tokens before unexpectedly returning them and leaving a message for the Cover team. The Cover team back then immediately acknowledged the attack and set about with their investigation while also warning investors against buying the token.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.