Earlier on Monday, Cover Protocol, a decentralized finance (DeFi) insurer suffered a minting attack and news of it caused the protocol’s price to fall by a whopping 97%. However, a couple of hours after the infinite printing scheme hack had taken place, a ‘white hacker’ known by the name of Grap Finance took responsibility for the minting attack on Twitter and stated that all funds that were taken had been returned. Initially, more than $4 million in funds had been withdrawn by the white hacker, which included around 1,400 ether, one million DAI and around 90 WBTC.
In almost 24 hours of the attack, there was a 95% fall in the price of COVER, as it was reduced to $50 per token. Nonetheless, the price is apparently moving up once again. Before the hacking incident occurred, COVER had been priced at around $859, before it fell. But, after the white hacker took responsibility and announced the return of funds, the price of the token once again rebounded and had reached $240. Before the minting exploit incident had come to light, Cover Protocol had announced that it was planning to roll out a new token via Twitter.
According to the announcement made by the company, the amount that was returned to them by the white hacker will also be delivered to the token holders. In addition, the DeFi protocol warned off all users and holders and told them not to purchase any COVER tokens for now. Grap Finance also added that they had returned the funds and no profits had been made. In fact, the white hacker bluntly told Cover Protocol that they need to pay attention to the vulnerabilities in their system and be mindful of security. No additional details were provided by the hackers about the nature of the attack or the reason for carrying it out.
However, it was noted by some observers that there was a possibility that it was just a publicity stunt, aimed at gaining a degree of popularity. There are also other observers who feel that this attack on Cover Protocol actually ended up saving it from a potential attack by black hackers, who wouldn’t have taken responsibility and returned the stolen funds. Instead, Grap Finance helped Cover Protocol in discovering the vulnerabilities in their system that other hackers could have exploited rather easily. In the meantime, there has been a 4,000% increase in the value of the COVER token.
This increase in price is probably because of the publicity relating to the protocol’s hack, along with the excitement about a new token that will be added to the MXC exchange. Sorawit Suriyakarn, the chief technology officer at Band Protocol, said that the hacking method that was used by the attacker was a new one and hadn’t been identified in any other type of attack. The purpose of Cover Protocol is to provide insurance to users and minimize the risk associated with smart contract failures. Recently, the firm collaborated with Yearn.Finance for offering more services.