Binance CEO said that altcoin investors trust Binance as the price of BNB dropped by less than 5% after the BNB Chain attack.
Binance CEO is confident altcoin investors are confident
CZ is confident in the community’s trust in Binance as BNB only dropped less than 5% despite the big BNB Chain hack of the day. Binance positions itself as one of the largest and most trusted exchanges in the cryptocurrency ecosystem. The firm has seen expansion on a global scale since its inception. Moreover, it has built a solid community on the BNBChain network.
Binance CEO Changpeng “CZ” Zhao reiterated the community’s confidence in Binance despite the recent hacking of a BNB Chain-linked bridge. As CZ noted, BNB dropped less than 5% after the hack.
CZ guested on CNBC today to talk about the incident. CZ was specifically asked to share his view on BNB. While trying to highlight various use cases for BNB, CZ stated:
BNB has many utility values: you can use it to pay fees on the BNBChain network; you can use it to buy plane tickets, buy food; and you can use it to raise money for your entrepreneurial projects; You can use NFTs to sell or buy.
He further said:
Even with such an overnight hack, you can see the BNB price drop by less than 5%. This shows that the trust in the community holding BNB is extremely strong.
"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— is extremely strong," says @cz_binance pic.twitter.com/AgwS854Quo
— Squawk Box (@SquawkCNBC) October 7, 2022
Furthermore, CZ stated that he has great faith in the BNB token as he dedicates most of his time to the project. Later, he expressed his confidence in the developers and BNB investors. CZ also shared more about the prospects after the hack. He noted that the team will learn from mistakes to make the project’s codes more secure:
We need to learn how to learn from such mistakes and make our code more secure. Software code is never error-free; We were able to minimize quite a bit of the damage.
CZ later admitted that software codes are often full of bugs. That said, Blockchain-coded bugs cause more pain. Because when these errors are exploited, financial losses are experienced. In CZ’s words:
“We have now managed to minimize quite a lot of damage, with less than $100 million in losses.”
Addressing blockchain security concerns, CZ stated that the attack took place through the exploitation of a bridge. He also shared that BNB Chain itself is “no problem”. He similarly highlighted previous bridge hacks, but noted that every bridge is different, so some bridge-specific bugs may not be discovered in a timely manner.
BNB Chain hack attack
As cryptokoin.com reported, hackers recently exploited a bug in a BNB Chain-linked cross-chain bridge overnight. Hackers have seized up to 2 million BNB tokens. That’s roughly $566 million.
However, thanks to the quick response of the Binance team, the damage was reduced to an estimate of between $100 million and $110 million. Binance had to temporarily suspend activities on BNBChain to control the situation. Network activities backed up as of press time.
After reports of the attacks, BNB dropped over 4%. BNB is changing hands at $283 as of publication, down 3.98% in the last 24 hours. BNB’s decline does not separate it from the broader crypto market, as most cryptocurrencies have also seen a dip in the past 24 hours.
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