BNB community is ‘extremely strong’ as token dips less than 5% after hack

Binance CEO says BNB community is ‘extremely strong’ as token dips less than 5% after hack

Following the theft by hackers of over $100 million worth of BNB Smart Chain (BSC) token on October 6, the cryptocurrency exchange Binance temporarily paused operations of its blockchain network.

The crypto exchange announced that a cross-chain bridge connecting with its BNB Chain had been hacked, giving cybercriminals the ability to steal BNB tokens from the network. However, since then, the network has resumed operations with not much impact on the price of the token.

Speaking with CNBC’s Squawk Box on October 7, Changpeng Zhao, more commonly known as CZ within the crypto space, stated that sentiment around the digital asset remains ‘extremely strong’ despite the network suffering a breach.

“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 added:

“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 happened ?

In particular, the hackers targeted BCS’s cross-chain bridge BSC Token Hub – the bridge between BNB Beacon Chain (BEP2) and BNBChain (BEP20 or BSC) – resulting in the suspension of operations on the entire chain.

“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,” said CZ.

An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly.
— CZ 🔶 Binance (@cz_binance) October 6, 2022

According to the estimates by the blockchain security and analytics company PeckShield, the losses could be estimated to be around $580 million.

BNB price analysis

Given the latest news around the token crypto trading analyst Altcoin Sherpa opined that it would be prudent to avoid trading BNB for the meantime.

“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 EMAs. Source: Altcoin Sherpa

Currently, BNB is trading at $282, down 3.66% in the last 24 hours, and down marginally 0.09% across the last seven days. The total market worth of the digital asset is $45.5 billion, according to data retrieved by Finbold from CoinMarketCap.

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