Drama Ridden Cover Protocol and Ruler Protocol Shuts Down After Development Team Leaves Suddenly
Decentralized insurance provider Cover Protocol has announced its shut down after their development team left the project. Its sister firm, a smaller lending platform, Ruler, is also shutting down.
The news sent the prices of the tokens of both the platforms crashing with COVER down more than 22% since the Cover team first announced it on Saturday, to trade at $215, while RULER is down over 90% during the same period to trade at $1.2.
The community manager DeFi Ted didn’t reveal why the development team left but said,
“The decision to do this did not come easy and is a final decision the remaining team made after reviewing the path forward after the core developers suddenly left the projects.”
The remaining team has decided to disperse the remaining treasury funds to token holders as a creditor payout, for which a snapshot will be taken at block number 13162680.
Going forward, the team will not be continuing with the RULER & COVER token or contracts, and the UI will be shut down.
The Cover protocol, however, has always been plagued with issues. Last December, it was the victim of a white hat attack. In March this year, DeFi blue-chip Yearn Finance canceled its plans to merge with Cover.
COVER Protocol was also a rebranding from yieldfarming.insure project (SAFE) about a year ago. The launch of the yieldfarming.insure project was a debacle in itself which later gained support from Yearn’s Andre Cronje and FTX CEO Sam Bankman-Fried as advisors, and even the relaunch wasn’t without any issues.
DeFi Ted now warned users to withdraw any funds from both protocols as soon as possible.