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December 30, 2020

Crypto Asset Built on Ethereum Rallies 6,548% in Just 24 Hours – Here’s Why

By Daily Hodl Staff

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.

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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.

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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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Featured Image: Shutterstock/IgorZh

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