Cover Protocol token price plummets 33%

DeFi project yearn.finance announced today that it will end its merger with Cover Protocol.

We have decided to end the previously announced merger process of Yearn and Cover. Both protocols will continue to operate independently. yVault depositors who have previously purchased Cover protection are unaffected by this.

— yearn.finance (@iearnfinance) March 5, 2021

Cover is dedicated to creating peer-to-peer insurance coverage markets in the decentralized finance space. The collaboration of the two projects was announced in November. Yearn.finance founder André Cronier then announced that Cover would become the base coverage provider for the project he founded and the decentralized finance market as a whole.

“The merger of the two projects will allow us to optimize, scale up and strengthen the work that is already underway,” he wrote.

Nevertheless, today in yearn.finance it was reported that the further work of the projects will continue independently of each other.

“Depositors of yVault who have previously purchased cover from Cover will not be affected by this announcement,” they wrote.

The developers did not name specific reasons for the termination of cooperation.

“Personally, it made me very sad,” wrote Cronier. – I really respected, trusted and believed in the Cover team. Lesson learned. I won’t believe them anymore. ”

Against the background of today’s announcement, the price of the COVER token has dropped 33% to $ 630. This is not the first such collapse for COVER. At the end of December, its price dropped by 65% ​​for a short time when the project was attacked, but in mid-February it reached new highs of about $ 1,700. The consequences of the exploit were then quickly eliminated, but the rupture of an important partnership could become a longer-term negative factor for the price of the token. According to some opinions, the decision to end cooperation may be related to the December events.