TechFlow News, December 31 — Binance has released a resolution plan regarding the COVER incident. Binance stated that in addition to the official token swap program by the COVER team, it will use its "SAFU Fund" to compensate users who purchased COVER on Binance after the snapshot time and suffered losses. The specific compensation plan is as follows:
According to the project team's announcement, the COVER team will conduct a token balance snapshot at Ethereum block height 11541218 (December 28, 2020, 16:11:06 Hong Kong time) and issue new COVER tokens at a 1:1 ratio. Binance will compare this official snapshot time with Binance’s COVER trading suspension time (December 28, 2020, 20:40 Hong Kong time):
Users who did not trade: If their holdings at the time of the project's official snapshot match their holdings when Binance suspended trading, they will receive new COVER tokens at a 1:1 ratio;
Users who bought after the snapshot:
For the portion held at the time of the project's official snapshot, users will receive new COVER tokens at a 1:1 ratio;
For the net purchases made after the snapshot, users will be reimbursed in BUSD and ETH based on their actual purchase cost. All related expenses will be fully covered by Binance's "SAFU Fund." The total amount disbursed from the SAFU Fund is approximately $10,107,505 USD (including 8,171,634.10 BUSD and 2,581.16 ETH).
Users who sold after the snapshot: They will receive new COVER tokens at a 1:1 ratio based on their holdings at the time Binance suspended trading;
Users who deposited prior to suspension: Deposits made from other addresses to Binance between the official snapshot time and the trading suspension can be withdrawn by users at their discretion.
Note:
New COVER tokens will inherit the existing COVER ticker symbol. The old COVER tokens will be renamed as COVEROLD;
Binance will distribute new COVER tokens upon receipt. Compensation in BUSD and ETH will also be distributed simultaneously. A separate announcement will be made once distribution is complete;
Deposits and withdrawals for COVER will remain suspended until the official token distribution by the COVER team is completed. The resumption time will be announced separately;
Binance will later evaluate whether to list trading for the new COVER token.
