Core developers of Cover Protocol abandons the Ethereum DeFi insurance project
The announcement of core developers abandoning the Cover Protocol insurance project was made by a core contributor “DeFi Ted” through a blog post on Medium. Cover price plummeted 16% as trading volumes soared.
Cover Protocol is a DeFi insurance cryptocurrency project which is minted on Ethereum. The project will no longer receive any support and development after the core team’s engineers left suddenly.
It was written in the blog post that “After discussing with the remaining team and finalizing plans moving forward it made sense that the remaining treasury funds be evenly dispersed to token holders.”
“DeFi Ted” is the insurance coin’s core contributor. He made the announcement on early Sunday morning. With a market cap of around $21 million, the price fell over 16% within hours of making the announcement, from $269 to the low $220s.
The trading volumes of 24 hours surged from below $4 million to nearly $20 million. DeFi Ted had also advised the coin holders in the blog post to “withdraw any funds from both protocols asap, as we can no longer maintain the UI.”
DeFi Ted expressed his sadness by saying that “I was extremely disappointed to learn that the development team was leaving so suddenly, especially given the time we had spent together building out the protocols and following the vision they had.
The vision they had set was the DeFi insurance coins. It could cover investors from losses in projects and that would end in calamity.
The Cover Protocol allowed its users to stake COVER coin and to put it up as collateral by receiving smart contract tokens. This would execute claims to insure the coin holder against losses from hacks, exploits, and rug pulls in Ethereum DeFi projects gone awry.
CBW - External Analyst