Dear CoinEx users,
After the COVER smart contract experienced an infinite minting attack on 2020/12/28, a large number of minted COVER tokens (greater than the COVER circulating supply) were bought by arbitrageurs on decentralized exchanges and deposited on CoinEx, causing the price of COVER to decrease at an alarming rate, and resulted in many CoinEx users experiencing significant losses. What's more, the COVER team was unable to provide any funds beyond their original compensation plan.
After reviewing the latest compensation plan from the COVER team, we realized that a large number of CoinEx users who bought COVER on CoinEx after COVER’s proposed snapshot time at 2020/12/28 8:11:06 AM (UTC) would have their tokens become worthless. In response to this, CoinEx has decided to proceed with a plan that upholds our core principle of protecting our users.
As described in COVER’s compensation plan, the COVER team will take a snapshot of all COVER balances at an Ethereum block height of 11541218, 2020/12/28 8:11:06 AM (UTC) (“ETH Snapshot Time”) and distribute a new COVER token at a ratio of 1 COVER-old = 1 COVER-new. We will also incorporate the time that COVER trading was halted on CoinEx, 2020/12/30 20:00 PM (UTC) (“Trading Stop Time”) into our plan:
· For CoinEx users who did not trade COVER: If a user’s COVER balance on CoinEx at the ETH Snapshot Time was equal to their balance at the time of the Trading Stop Time, then this user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the ETH Snapshot Time.
· For CoinEx users who bought COVER after the ETH Snapshot Time: f a user’s COVER balance on CoinEx at the ETH Snapshot Time was lower than their balance at the Trading Stop Time, this user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the ETH Snapshot Time.
· For each user’s net purchased COVER amount, CoinEx will compensate users with USDT out of pocket with the price that they originally purchased the COVER tokens.
· For CoinEx users who sold COVER after the ETH Snapshot Time: If a user’s COVER balance on CoinEx at the ETH Snapshot Time was higher than their balance at the Trading Stop Time, this user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the Trading Stop Time.
Please note:
· COVER-new will assume the COVER ticker going forward. COVER-old tokens will be delisted on CoinEx.
· CoinEx will complete the distribution of COVER-new, USDT to all affected and eligible users as part of the compensation plan will be distributed after receiving the new COVER token. A further announcement will be made once the distribution is complete.
· Both deposits and Withdrawals for COVER-old will be closed after this announcement. A further announcement will be made once COVER-new tokens have been distributed.
· CoinEx will determine whether or not to open trading for COVER-new at a later date.
CoinEx Team
December 31, 2020
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Announcement on COVER Incident Resolution Plan
