A new hacking operation that affects a DeFi project, causing the project's currency to collapse.
According to what was mentioned in the source, the decentralized financing project “COVER” was hacked, which led to the collapse of the project’s digital currency named after the project.
Where the price of the digital currency "COVER" decreased by more than 95%, and the price of the currency decreased from $ 845 to less than $ 30, according to coinmarketcap.
The team behind the project has so far failed to provide any explanation of the crash and the breach.
Members of the cryptocurrency community, including Evan OnTech - a cryptocurrency influencer on Twitter - revealed that the protocol was being misused.
According to another user, what happened is as follows:
Someone smashed fake cryptocurrencies, provided liquidity through Balancer, and bet BPT coin through a bug and exploit a loophole in the "COVER" protocol.
The hacker was able to exploit this bug that allows him to infinitely coin the "COVER" cryptocurrency
The "COVER" project is not the only one that has fallen victim to such exploitative behavior as it was preceded by many of the decentralized financing projects that were badly exploited earlier.
At the beginning of this month, the “Warp Finance” decentralized financing project was exploited through a quick loan attack and hackers managed to steal $ 7.7 million.
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