SAFE Token Pumping Hard After Getting Revived as COVER Protocol

The DeFi sector is always buzzing, if not for price moves or new innovations, then all the drama. After the SushiSwap debacle, this week, the center of the controversy is the SAFE token.

The token has gotten a new lease on its life with its relaunch as COVER protocol. Meanwhile, SAFE token pumped hard, about 250% to a new peak of $800, currently it is trading at $676.

This is because deployed SAFE pools will continue to distribute SAFE to stakers and the token holders will be migrated to COVER in over a month, once the new project’s beta is released.

$SAFE (now $COVER) recovering.

Crypto is so unique that the community may eventually forget founders lied and pumped & dumped.

Send it. https://t.co/uWkBX0nkbP

— Alex (@classicmacro) September 17, 2020

The anon creator of the SAFE protocol acknowledged his mistakes in “handling of the SAFE token launch.”

He has now withdrawn from the university and received a generous grant of $25,000 (and 5 ETH) from Yearn’s Andre Cronje and another from BlueKirby.eth to fully focus on this project.

The project is retaining the core developers of SAFE and lists Cronje and FTX CEO Sam Bankman-Fried among others as advisors.

The protocol will enable users to buy and sell COVER on anything and is expected to have an MVP in beta testing by November 1, 2020.

This time, the “valueless” governance token (COVER) will be obtained via “Shield Farming” for a fairer distribution versus “stake farming.”

Before SAFE relaunched as COVER

The yieldfarming.insure project, launched by an anonymous developer, distributed SAFE governance tokens to users who lock up insurance-related crypto assets like wNXM – the wrapped Nexus Mutual tokens and yNFT where a cover is converted into an NFT.

Much of the hype behind this project was driven by SAFE wanting to be like DeFi blue chips YFI and NXM. The insurance-related assets staked on the platform are actually underwritten by Nexus Mutual.

I've researched $SAFE extensively and it does look legit. No product yet though so the warning is appropriate.https://t.co/VrYWp7urVg

— Alex (@classicmacro) September 15, 2020

Insurance protocol Nexus Mutual took to Twitter to clarify that “SAFE mining is completely separate to Nexus Mutual. It is not developed or endorsed by the mutual or the team.”

The recently launched project started to gain traction after the report that Chef Insurance received a $25k grant from Cronje.

The price of the SAFE token peaked at over $4,000 after four staking pools with assets yNFT (ETH), yNFT (DAI), WNXM, SAFE-DAI Bal LP opened, only to fall like hard rock on reports of it being a scam.

$SAFE will likely end up as a ponzi after all. There is a chance team in charge ends up developing something. And there is a chance the head developer starts anew and airdrops to prior token holders. High odds it will die as another ponzi after all. Sad. https://t.co/Wg3IsevVTx

— Alex (@classicmacro) September 16, 2020

“The SAFE story is a great example of a “fair launch” of a token without product, in which whales farmed early and dumped on the masses, followed by the anon team unleashing a sh*tshow,” said trader and economist Alex Kruger.

This $SAFE sh*t has been at the same level of $SUSHI. Shorter duration, less money involved, less public exposure, and scammier.

— Alex (@classicmacro) September 16, 2020

In this week’s drama, the pseudonymous developer Chef insurance accused the project investor Azeem Ahmed of unethical decisions while Azeem hit rebuttal and shared his side of the story.

After coming clean about all that went behind the project, Chef Insurance gained community support and now he has launched the latest COVER version.