Defi Altcoin project Conic Finance decided to close because it could not resolve the security gaps identified in the new version. The project, which could not recover after two separate attacks in 2023, finally ended its activities.
After the announcement, CNC Token painted the Altcoin market red
Following the announcement that Conic Finance will close, the local tokens of the protocol CNC lost more than 80 %to $ 0.01. However, the CNC Token was traded over $ 10 at the peak and the total market value was close to $ 50 million.
The project team said that they have worked for months on the new version of the protocol, but they could not close the security gaps. Even as a result of the activities carried out with the audit companies, the failure of the problems caused the team to lose confidence in publishing the new version.
In the development process, the departure of some members of the team from the project made things more difficult for the remaining developers. An investor expressed his confidence in the project with the following words:
I’m really sorry; I thought this idea made a great contribution to the defi ecosystem. When the hack attack took place, I lost 90 %of my assets, so I hurt about $ 80,000. Nevertheless, I did not sell and continued as a long -term investor.
Conic Finance and Curve Connection
Conic Finance offered users a system that allowed users to provide liquidity to the Curve protocol and diversify these pools. Curve is the second largest non -decentralized stock market in the Ethereum blocking, especially known for its deep liquidity for fixed coins.
However, the fall of Conic began with attacks in July 2023. 3 million dollars in the first attack, 300 thousand dollars lost in the second attack after a short time. The total amount of crypto assets deposited in the protocol was 156 million dollars before the attacks, while the attacks fell below 600 thousand dollars.
Rescue efforts
While many defi protocols could not recover after attacks, Conic Finance tried to reversed this situation by releasing a new version. At the beginning of 2024, this new version attracted over $ 30 million, but over time, investments decreased and fixed around $ 5 million.
Finally, Conic’s remaining developers closed new money entries to the platform by closing the liquidity pools of the protocol. The Omnipools automatically distribute the funds that users have launched to different Curve pools.
Michael Egorov, the founder of Curve, invested $ 1 million in Conic Finance after the attacks. The Conic team announced that unused funds will be returned to Egorov.
The closure of Conic Finance once again revealed how security vulnerabilities and hacking attacks in the defi world can permanently affect a project.
