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A relatively new crypto asset built on Ethereum soared more than 6,548% within a day after the entity behind the project dropped a bombshell on the industry.
Grap.Finance (GRAP) is a fork of the YAM protocol, which is a decentralized protocol that uses rebasing strategies to achieve price stability. Its supply is designed to expand and contract based on market conditions.
GRAP’s value plumetted to an all-time low of $0.009 on December 11th.
It then skyrocketed to a high of $0.718 on December 29th from a low of $0.0108 on December 28th, representing growth of 66x in less than 24 hours.
Source: CoinGecko
GRAP’s ascent comes after the project publicly admitted that it was the white hat hacker that successfully attacked peer-to-peer coverage market for decentralized finance (DeFi) Cover Protocol (COVER).
The hack exploited a bug on the project’s shield mining contract, Blacksmith, and allowed the attacker to mint 40 quintillion COVER and decimate the protocol’s supply.
Next time, take care of your own shit.@CoverProtocol @chefcoverage https://t.co/ks94ucdoRQ
1. No gains.
2. The Obtained Funds from LP has been returned to COVER.
— Grap.finance (@GrapFinance) December 28, 2020
Although GRAP returned the funds, Cover says it plans to take a snapshot of the network prior to the attack, launch a new crypto asset, and distribute the coins to token holders.
“Hello everyone, we are exploring providing a NEW COVER token through a snapshot before the minting exploit was abused. The 4,350 ETH that has been returned by the attacker will also be handled through a snapshot to the LP token holders. We are still investigating. Do NOT buy COVER.”
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The post Crypto Asset Built on Ethereum Rallies 6,548% in Just 24 Hours – Here’s Why appeared first on The Daily Hodl.
