After experiencing a massive growth of 30.9% in the past 30 days, Cover Protocol is being delisted by Binance. Find out why!
In an announcement that came as a shock to many users, Binance has announced the delisting of the Cover Protocol (COVER) token from its crypto exchange. In an official announcement, the largest cryptocurrency exchange in the world mentioned that it has thoroughly reviewed the COVER project and found that it doesn't adhere to multiple requirements which include:
- Team commitment to the project
- Safety and stability of the network
- Total trading volume and liquidity of the project
Other factors can be found here in the official announcement.
What Will Happen to Your Cover Protocol (COVER) Tokens on Binance?
If you have invested in the COVER token on Binance, then it is a good idea to convert your holdings to either ETH or BUSD, as both COVER/ETH and COVER/BUSD trading pairs will be removed from the cryptocurrency exchange by the 24th of September. For traders who still hold the COVER token, they will automatically have their holdings converted to BUSD on 22, Sep 2021 by Binance.
What Is Cover Protocol (COVER)?
Named initially as SAFE, the Cover Protocol (COVER) had to be rebranded as the initial launch with the name 'SAFE' wasn't exactly a hit. The idea behind the Cover Protocol was to prevent DeFi users against any risks related to smart contracts. The Cover Protocol's ecosystem is run by fungible cover tokens which are created when a user deposits their funds into a smart contract hosted on the network.
The Cover Protocol was destined to fill the void between conventional and decentralized finance, as it opened a new pathway to DeFi for all investors out there. It was marketed as a decentralized, limitless, and scalable solution that didn't require KYC verification to buy coverage on the network.
With such huge potential, it came as a shock to many, when it was announced that the Cover Protocol (COVER) was coming to an end.
The Real Reason Behind Delisting Cover Protocol (COVER)
In a blog post written by one of the core contributors of the Cover Protocol, DeFi Ted, it was announced that the COVER and RULER (another token created by the same team) will be shut down as the core development team has left the projects abruptly.
DeFi Ted shared the sentiments of the COVER token holders and said:
‘’I want to personally say that I was extremely disappointed to learn that the development team was leaving so suddenly, especially given the time we had spent together building out the protocols and following the vision they had.’’
The blog post also highlighted that although the protocols will be shut down, both RULER and COVER tokens will continue to give 'creditor payouts' meaning the treasury funds will be distributed evenly among the token holders of COVER and RULER.
It must be noted that this announcement was made on Sep 5, 2021, after which the COVER token price plunged by 16% and currently trending at $191.83. This post also caused panic among COVER token holders as everyone wanted an exit as soon as possible, which caused the trading volumes to go from $4 million to $20 million.
Will The Cover Protocol (COVER) Bounce Back?
Many crypto users hoped that the Cover Protocol (COVER) will take them to the moon after the token crossed the $400-mark in the last 30 days, however, the abandonment of core developers killed the project.
Is Cover Protocol (COVER) a Good Investment?
However, this may not be the end of the COVER project, as a new development team that is committed to the project may just be the thing that DeFi Ted and his team need. Till then, it is not a good idea to invest in the COVER token and it is better to look for other great projects that offer similar or greater returns.
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