News broke on Friday that a hacker had successfully exploited the BNB Chain. The hacker, however, did not take user funds. This is in contrast to the DeFi (decentralized finance) hacks that are becoming increasingly popular in the crypto market. In what is likely to be the biggest crypto hack, they had already brought BNB coins in circulation.
Hack Introduces a New BNB to Circulation
It had taken place on Binance Bridge, and the hacker had managed to persuade the bridge to issue millions of new tokens. Each transaction carried 1,000,000 new BNB. The attacks took place in two waves. The attack resulted to more than $500 million of coins going into circulation.
Before further damage was done, the BSC Chain was quickly stopped by the team. Some of the stolen coins were also reportedly frozen by the attacker.
After hack, Binance coin dips| Source: BNBUSD on TradingView.com
The BNB price plummeted after the news, but the damage was already done. While the network is still trying to deal with the effects of what could be a disastrous hack, there are speculations about what this hack might mean for BNB’s future value.
What effect will this have on the price of your product?
Supply affects the value of assets. If there is a lot of supply, this can have an obvious impact on their price. BNB was the exception to this rule. The attacker made off with a small amount, but it did not have a significant effect on its price.
Trust in the network is the main concern when it comes to price. Hacks are known to cause a decline in investor trust and prompt them to withdraw their funds. However, this is not the case for 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.
BNB seems to be in good shape, with the exception of a modest drop in price for the digital asset after the hack was publicized. At the time this article was written, it still has a value of $280. BNB is also supported by the largest cryptocurrency exchange in the globe, which has quarterly burns. This month’s 21st burn will be held sometime during the month. The price impact will not likely be large.
Featured image by Freepik. Chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…