Binance CEO believes the BNB community is “very strong,” as the token drops less than 5% following the hack.
Following the theft of approximately $100 million in BNB Smart Chain (BSC) tokens by hackers on October 6, cryptocurrency exchange Binance briefly suspended operations of its blockchain network.
The crypto exchange said that a cross-chain bridge linking to its BNB Chain had been compromised, allowing thieves to steal BNB tokens from the network. However, the network has subsequently resumed functioning, with little affect on the token’s price.
On CNBC’s Squawk Box on October 7, Changpeng Zhao, often known as CZ in the crypto sector, indicated that despite the network’s hack, sentiment toward the digital currency remains ‘very high.’
“We can see that even with such a hack that happened overnight the BNB price dropped less than 5%. That shows the confidence of the community that hosts BNB is extremely strong.”
He continued:
“I’m very confident in the ability of the development in the community and of the holders in the community. This is an unfortunate event that happened but we can learn from it.”
What occurred?
The hackers specifically targeted BSC’s cross-chain bridge BSC Token Hub – the link between BNB Beacon Chain (BEP2) and BNBChain (BEP20 or BSC), resulting in the suspension of chain operations.
“We just got to learn how we can learn from these kind of mistakes and make our code more secure. Software code is never bug free,” CZ said.
According to PeckShield, a blockchain security and analytics startup, the losses caused by the hack might be in the $580 million range.
Price analysis for BNB
Given the current developments surrounding the token crypto trading analyst Altcoin Sherpa believes it is recommended to avoid trading BNB for the time being.
“BNB: Obviously the talk of crypto rn w. the hack going on, scary stuff. Probably best to not trade this but from a pure TA standpoint, this area should be ok to enter given the EMAs and S/R flip. I’ve got a bag I still hold.”
BNB is now trading at $282, down 3.66% in the last 24 hours and 0.09% in the past seven days. According to statistics obtained by Finbold from CoinMarketCap, the entire market value of the digital asset is $45.5 billion.
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