Cover Protocol and Ruler is shutting down for conflicted emotions, price immediately dropped 15%
According to the official Twitter channel of the project, due to emotional conflicts, the Cover Protocol (COVER) protocol and the Ruler Protocol (RULER) subproject have officially stopped working permanently.
Cover Protocol is shutting down.
Please see medium article below.https://t.co/iujwDa6oN7
— Cover Protocol (@CoverProtocol) September 5, 2021
Cover Protocol and Ruler announces closure due to emotional conflict
According to information from DeFi project co-founder Ted’s Medium post, Cover was forced to shut down because the core developers of the project abruptly “said goodbye” to the project.
“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. After discussing with the remaining team and finalizing plans moving forward, it made sense that the remaining treasury funds be evenly dispersed to token holders”, the post stated.
After discussing with the remaining members and outlining plans, the team will evenly distribute the remaining treasury funds among COVER token holders.
“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,” said Ted.
Coming to this decision must have been extremely difficult. But with the small number of human resources remaining, it is difficult for the project to maintain Cover Protocol’s operation any longer.
If you are observant, you can somewhat feel that the project has had problems since March 2021. At that time, Yearn Finance said goodbye to Cover Protocol because of disagreements in development.
“I personally find it sad. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won’t trust them again”, Yearn’s Andre Cronje later expressed his disappointment in a (now deleted) tweet.
After that, Cover Protocol released COVER V2, which is seen as an effort to get up after parting with Yearn Finance and regain the glory of the past. But then the story can’t be changed, maybe like Cronje, we can’t trust Cover again.
It is known that the project will take a snapshot of the wallet holder from block number 13162680 to consider partial compensation. The refund is taken from the treasury and will not be received by project members.
“Compensation will be as of block number 13162680, and this will be used as the snapshot to distribute funds to holders from the treasury. Founders including myself will not take part in this”, he concluded.
Finally, Ted urges users to withdraw funds from the protocol as soon as possible because they can no longer maintain the user interface, and converting to etherscan is complicated. Moreover, if you are holding COVER on exchanges, you should quickly sell because the price will surely go to zero soon.
COVER/USD 4-hour chart | Source: TradingView
At the time of writing, the COVER price decreases by 15%, ranging at $226.
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