TL;DR Breakdown
• The DeFi network protocol suffered a hack that caused it to lose its reputation.
• Rules and Cover developer Ted invites users to take a compensation plan.
The DeFi network protocol, backed by the Ruler and Cover group, announced the closure of its online facilities after some internal problems. Recently, DeFi Ted announced that the project would be ending after the massive resignation of its developer.
The Ethereum based decentralized finance team promised various payment services and protocols against virtual hacking. The DeFi network allowed clients to invest in backing tokens under a clause that promised significant returns.
What happened to Ruler and Cover’s DeFi network?
By December of last year, the Ruler and Cover network had a cyber-attack that caused the loss of 40 quintillion tokens; the total amount of stolen tokens was not specified. This virtual attack caused the DeFi network to increase its supply of tokens, causing the plan to have no purchasing power. According to statistics, the decentralized finance company lost about 97 percent of its revenue in that month.
However, something very strange happened within the company because the cybernetic hacker dared to return the stolen money, but not before leaving a clear message: “Next time, take care of your own shit.”
Even though Ruler and Cover recovered their stolen funds, this cyber attack did not go unnoticed by customers and crypto fans. The attack revealed how fragile the network is and that it could suffer a new cyber attack again at some point.
Ruler and Cover reputation permanently destroyed
Ruler and Cover went from being one of the most famous DeFi protocols to losing great interest among users. The decentralized finance network is remembered for linking with crypto companies like Cream Finance and SushiSwap. However, this partnership only lasted four months because Ruler was having trouble accepting the new proposed renovations.
After the closure announcement, Defi Ted, the company’s most enigmatic developer, said it would create a compensation plan for his clients. After fixing the legal issues and liquidating the retiring developers, Defi Ted believes it was only fair to reward customers. The developer aims to give the remaining funds from the treasury to the clients evenly.
At least 13,162,680 blocks will be designated to calculate treasury funds and distributed equally among the DeFi network users. Rules developer warns that holders should withdraw their earnings soon, as the platform could close unexpectedly.
As the decentralized finance firm’s native token, the Cover has lost over 8 percent of its value since Defi Ted said the platform would shut down. The token went from $233 to $213; the number of operations grew because investors sought to withdraw their funds. Users who wish to stick with these decentralized finance protocols can contact companies like Nexus Mutual.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
