Home News CREAM’s price fell following the announcement of a refund

CREAM’s price fell following the announcement of a refund

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The price of Cream Finance DeFi (decentralized finance) protocol token has fallen by more than 35% after the developers announced a refund program for users affected by the October hacker attack.

Thus, the company will distribute more than 1.45 million CREAM among the victims. To do this, they will use the assets of the treasury of the project. As well as tokens allocated to developers. The latter will no longer receive allocations.

Moreover, users who managed to obtain a refund through the insurance projects Nexus Mutual and Bridge Mutual, do not participate in the program. Cream Finance noted that stacking participants will continue to receive remuneration. This also applies to long-term CREAM pools.

Decrease in the price of the token

The project team will focus on the development of the Iron Bank protocol (CREAM’s protocol-to-protocol lending platform). The developers “tightened the token listing strategy” and set limits on collateral for all markets. Also, started implementing “additional monitoring and notification solutions.”

At the time of writing, CREAM is trading near $50. On November 13, the price exceeded $88. Before the attack, the asset price was more than $155.

The decrease in the price of the token is associated with an increase in its supply. Therefore, the treasury and developers’ assets will enter the market. According to CoinGecko, 766,534 CREAMS are in public circulation. But now their number will increase significantly.

2021 hacker attacks

In 2021 Cream Finance suffered hacker attacks three times. Earlier in February, an unknown attacker exploited a vulnerability in Iron Bank and withdrew tokens totaling $37.5 million.

In August, the project lost $19M as a result of a flash loan hack. The damage amounted to 462,079,976 AMP and 2804 ETH (~ $19 million). Later on September 8, the hacker transferred most of the stolen amount of 5152.6 ETH to the multi-sig wallet of the project.

Previously in October, the protocol developers confirmed that they managed to return 5152.6 ETH. The hacker got 10% of the stolen funds (~515 ETH), as a reward for the discovered error. In the same month, an unknown person withdrew $130 million from Cream Finance, using an instant loan as part of a complex transaction.

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