Binance Hacker Put Millions Of New BNB In Circulation, What Does This Mean For Price?
October 07 2022 - 1:00PM
NEWSBTC
In the early hours of Friday, news broke that a hacker had been
able to successfully exploit the BNB Chain. However, unlike
decentralized finance (DeFi) hacks that have become prominent in
the crypto market, the hacker did not steal user funds. They had
actually brought new BNB coins into circulation, in what would be
one of the largest hacks recorded in crypto so far. Hack Puts New
BNB In Circulation The hack had happened directly on the Binance
bridge, where the attacker had been able to somehow convince the
bridge to send them millions of new tokens. The attack happened in
two waves, each transaction carrying 1 million new BNB. This
resulted in over $500 million worth of coins being sent into
circulation. Related Reading: Wash Trading Dominates Bitcoin
Volume, What Does This Mean For Price? The BSC Chain had been
quickly paused by the team before more damage could be done and
some of the coins gotten by the attacker were reportedly frozen,
leaving the hacker with about $100 million in their stolen loot.
Binance Coin dips following hack | Source: BNBUSD on
TradingView.com However, the damage had already been done and the
BNB price had tanked following the news. Now, as the network
continues to handle the aftermath of what could have been a
devastating hack, speculations have now turned towards what the
hack could mean for the value of BNB, at least in the short term.
Will This Affect Price? The price of any asset is affected by the
available supply and if a large amount of supply is put into
circulation at once, it can obviously have an impact on the price
of that asset. However, in the case of BNB, the exploit had been
stopped at the right moment, it seems, and the amount the attacker
had made off with had not been enough to have any significant
impact on the price of BNB. Related Reading: Brace For Impact: This
Expert Trader Says Cardano (ADA) Will See A 50% Decline The major
concern regarding price now springs up from the trust level in the
network. As has been the case in the past, hacks have usually seen
a drastic decline in investor trust, leading them to pull out their
funds but that has not been the case with BNB. In Binance’s case,
it had brought up questions about how truly “decentralized” the
blockchain is if it can be paused due to a hack. Besides a slight
dip in the price of the digital asset since the hack was made
public, BNB looks to be holding up well. It still maintains its
value above $280 at the time of this writing. Additionally, BNB is
backed by the largest crypto exchange in the world that holds
quarterly burns and the 21st burn is expected to happen sometime
this month. So the impact on the price will likely not be
significant in any way. Featured image from Freepik, chart from
TradingView.com Follow Best Owie on Twitter for market insights,
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