- Cream Finance faces two dramatic plunges within a month after the massive exploit
- Cream’s team plans to compensate the victims of the massive attack
- The team would be utilizing the remaining tokens from the treasury and will move their remaining token allocation
Cream Finance is a decentralized finance (DeFi) based protocol. Being a part of the Year Finance ecosystem, the project offers financial services to individuals, institutions, and other protocols in the sector. Last month the DeFi protocol faced a flash loan attack where the hackers drained more than $130 million dollars worth of crypto assets. After CREAM became a target to a devastating exploit, the price of the crypto token had faced a bigger dip. Notably, the brains behind the protocol recently planned to compensate the victims of the attack while inflating the token’s supply. But their good intention again caused a dramatic plunge in the price of the cryptocurrency. CREAM’s price has faced two consecutive plunges within just a month.
Cream Finance exploit brought huge impact on price
DeFi has potentially been considered as the mainstream banks killer. However, the industry remains hot and risky due to its decentralized nature. Late-last month, the DeFi money market Cream Finance has been a target of a noxious attack. The malicious actors had drained more than $260 million in funds from the protocol. According to experts in the industry, the attack was likely one of the second-largest exploits to date.
Following the hack, the majority of Ether-based pools were emptied at the time. However, $40 million was only left in the CREAM pool. In contrast, just four-days before tha exploit, Cream Finance had a $300 million worth value in the Ethereum market.
As the hacker made away with more than $130 million in a flash loan attack, the price of C.R.E.A.M plunged dramatically. Before the exploit, the cryptocurrency was trading near the price level of more than $152. However, after the exploit, the price declined near the level of $99.
CREAM’s team plans to compensate victims
On Saturday, the brains behind the DeFi protocol came up with a compensation plan. According to an official Medium blog, Cream Finance has plans to distribute 1,453,415 C.R.E.A.M tokens to the victims of the major exploit. To compensate, the team would be utilizing the remaining tokens from the treasury and will move their remaining token allocation. Moreover, the team also underscored that there won’t be any more allocations to the team.
Indeed, the victims can claim the tokens, through its official platform. However, the claim process will be available only for a year.
Following the latest announcement of compensation, the price of CREAM tokens faced another bigger plunge. According to data from CoinMarketCap, currently only 150,000 of the protocol’s 9 million outstanding coins are in circulation. Notablu, such a quick increment in supply of the coins in circulation has dramatically affected the demand. Indeed, over just 24-hours, the price of C.R.E.A.M declined from above $87 to less than $51.
Two consecutive dips in a month
Cream Finance is witnessing a really hard time. Over the last one month, the DeFi protocol has seen two consecutive dips. Before the exploit, the tokens were trading at the price level of above $152. However, at press time CREAM is trading at the level of $54.84.