Once popular SAFE/COVER token on Ethereum plunges 62% after community outrage

Published on by Cryptoslate | Published on

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The COVER token, originally called SAFE, relaunched after an initial dispute among within founding team.

As a result, Alan said Azeem is leaving SAFE and the SAFE team is creating COVER. "As the creator of SAFE, I acknowledge that mistakes were made in my handling of the SAFE token launch. I take full responsibility for my actions and no one else should be blamed except me. I apologize to anyone who was negatively affected and how I communicated. Testing in prod isn't always fun," Alan said at the time.

Fast forward a month, COVER launched, but with a surprising twist to its supply.

Rather than sticking to SAFE's initial supply, COVER is implementing a max supply of 160,000 tokens.

Max supply of COVER triggers outrage within the Ethereum DeFi space.

Early SAFE investors, DeFi analysts, and venture capitalists, harshly criticized COVER's maximum supply.

The investor said the "Reckless" decisions of COVER makes it unlikely.

"Early supporters of $COVER are now diluted by 5.8x. Was hopeful that COVER could be a viable addition to DeFi insurance, but the team's repeated reckless decisions suggests otherwise. Still Nexus Mutual's market to lose," Choi said.

The price of the COVER token is struggling to recover from its massive plunge, amidst heavy criticism from industry experts.

The implications of the COVER controversy on the broader DeFi space and the DeFi insurance market remain to be seen.