Crypto Market Sell-Off Continues as DeFi Platform Cream Finance Crashes Again

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Crypto Market Sell-Off Continues as Cream Finance Crashes Again

No, you’re not going crazy. The decentralized finance platform, CREAM, was hacked for the second time in less than a month. A hacker stole up to $230 million worth of various cryptocurrencies, including ETH. CREAM is offering a generous compensation plan for its users who have been affected by the hack.

Cream Finance (CREAM), an Ethereum-based decentralized finance project, lost price again on November 13. In fact, in less than a month, it had experienced two crashes.

During the first hacking incident in October, hackers stole as much as $130 million worth of cryptocurrencies, mainly CREAM tokens, but also other cryptocurrencies such as Ether.

That was the third time the platform had been hacked this year. On November 13, the price again collapsed, but this time it was because the platform wanted to compensate its victims.

CREAM announced that as compensation it would give 1.45 million CREAM tokens to victims. New tokens will be created for this purpose.

Due to the very low number of tokens in circulation, it is also a huge increase in the supply, so it is likely to negatively impact the price.

In just 2 hours, the CREAM token was down 37.5% from $88 to $55. At the end of October, the token had already fallen from $154 to $100, a steep drop of 35%.

This translates to a price loss of 64% since the end of October. It may also not help that investors are now being compensated in CREAM while larger crypto such as ether were also stolen.

 Some people, however, argue that the victims should be grateful that they received any compensation at all.

Several DeFi projects have already been targeted by flash loan attacks this year. As a newly emerging market, the underlying code is vulnerable to abuse and many projects are still in their infancy.

 Also, the products are often not audited.Despite this, the market continues to grow rapidly. DeFiLlama reports a new record of $275 billion worth of total value locked in (TVL) DeFi projects has recently been reached.

Via this site.

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