CREAM Drops On Hack Compensation News: Price Analysis

CREAM drops on hack compensation news that could inflate the token as we can see in our latest price analysis news today.

The price of CREAM fell again, continuing its drop in less than a month with the price of the Defi money market and lending service dropping on Saturday for the second time in 30 days. The first time came after an attack on CREAM’s token and the latest happened when Cream announced its plan to compensate the victims.

The recompense the victims of the attack, CREAM said it will issue to certain members that were affected in the hack, about 1.45 million tokens from the service’s treasury. While Cream has about 9 million coins outstanding, according to Coinmarketcap, about 150,000 of those are in circulation. However, the fast circulation and expansion of the coins, it is bound to affect the demand and the price per coin. The price of the coin dropped around $88 to as low as $51.78 according to MEssarei before rebounding to $56.44 and in the recent trading as well. Before the exploit, CREAM was trading above $152.

Adding momentum to the plunge on Saturday was most of the funds that were exploited in well-established assets like Ether. To get paid back with lesser-known crypto such as this one could leave a sour taste in the investors’ month after the increase of the coins in circulation which wasn’t a real factor after all. Still, as many victims of these attacks never see a piece of the compensation, the watered-down coin is still better than nothing.

As recently reported, Cream Finance suffered another hack attack which marked the third time the Defi protocol has been hacked. The DeFi platform is a lending and borrowing protocol that runs on the Ethereum network and the attack, a flash loan identified by PeckShield, resulted in the loss of cream tokens. This is, however, far from the first time that this platform suffered a major attack. Back in February the hackers made off with $37.5 million in a flash loan attack and tanked the price of CREAM by 30% in one hour. These frequent attacks prompted onlookers to call for bigger consumer protection in the DeFi industry including the chair of the Securities and Exchange Commission Gary Gensler. He spoke at the Yahoo Finance All Markets Summit and said that the decentralized space will not end well unless more robust consumer protections are brought in.

Source: https://www.dcforecasts.com/altcoin-news/cream-drops-on-hack-compensation-news-price-analysis/