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BSC Hack: Here's Main Factor Why BNB Price Remains Almost Unaffected, Per CZ

Fri, 10/07/2022 - 14:53
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Yuri Molchan
Binance CZ shared main reason for only tiny drop of BNB during massive hack of BSC
BSC Hack: Here's Main Factor Why BNB Price Remains Almost Unaffected, Per CZ
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The head of the largest exchange, whose blockchain was hacked and drained of a massive amount of crypto earlier today, has shared why he believes the price of BNB was almost unaffected by this attack.

He also shared the only thing that the Binance team can do to avoid these kind of problems in the future.

"BNB price dropped less than 5%"

Changpeng Zhao, often known as simply CZ, spoke to CNBC's Squawk Box today, regarding the hack of the BNB Chain (also known as BSC, Binance Smart Chain), after hackers managed to withdraw crypto worth half a billion USD as a result of a large exploit.

In fact, it was not BSC itself that was attacked by a cross-chain bridge and the BSC Token Hub. This hub is used for conducting cross-chain transfers between BNB Chain and BNB Beacon Chain.

CZ told the CNBC host, Joe Kernen, that the Binance team has been able to minimize the damage to less than $100 million by now. Responding to a question as to what needs to be done to prevent these kinds of exploits in the future, the head of Binance said that they need to learn from these situations and make their code stronger. Software codes are never bugfree, he added, especially those of a cross-chain bridge.

Related
Update: BNB Chain Announces Further Steps After 100 Million Hack

BNB price did not suffer, here's why

When asked where he sees the BNB market in five years, CZ stated that BNB has a lot of utility value – it can be used for paying transaction fees on BNB Chain, it can be used for buying plane tickets and food. Besides, BNB can be used for trading NFTs and for raising funds for a crypto project on Binance Launch Pad.

However, CZ stressed that the price of BNB went down less than 5%. In his opinion, this indicates that the confidence of the Binance community in this native token and in Binance itself is extremely strong.

He is extremely confident in BNB, too, since he spends most of his time working in this ecosystem.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.