Binance CEO said that altcoin investors trust Binance as the price of BNB dropped by less than 5% following the BNB Chain attack.
Binance CEO is confident altcoin investors are confident
CZ is confident in the community’s trust in Binance as BNB has only dropped less than 5% despite the big BNB Chain hack of the day. Binance positions itself as one of the largest and safest 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 belief in Binance despite the recent attack by a BNB Chain-contacted 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 the various use cases for BNB, CZ mentioned:
BNB has many benefits: you can use it to pay prices 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 belief in the community holding BNB is extremely strong.
Furthermore, CZ stated that he has great faith in the BNB token as he has devoted many of his time to the project. Later, he put his trust in developers and BNB investors into speech. CZ also shared more information on expectations following the hack. He noted that the team will learn from mistakes to make the project’s codes more believable:
We need to learn how to learn from these kinds of mistakes and make our code more believable. Software code is never inaccurate; We were able to minimize most of the damage.
CZ later admitted that software codes were often flawed. He said, however, that the Blockchain-coded flaws are causing more pain. Because when these misconceptions are abused, financial losses are experienced. In CZ’s words:
“We have now managed to minimize quite a lot of waste with less than $100 million in waste.”
Addressing blockchain security concerns, CZ stated that the attack occurred through the exploitation of a bridge. He also shared that BNB Chain itself is “no problem”. He highlighted the previous bridge hacks in a similar form, but stated that every bridge is different, so some mistakes specific to a bridge may not be discovered in time.
BNB Chain hack attack
Koindeks.com As we reported, hackers recently exploited a fallacy in a BNB Chain-connected cross chain bridge overnight. Hackers have seized up to 2 million BNB tokens. That’s roughly $566 million.
In contrast, damage was reduced to a mid-$100 million to $110 million claim, thanks to the quick response of the Binance team. Binance had to suspend activities on BNBChain indefinitely to control the situation. Network activities backed up as of press time.
In the wake of the attack reports, BNB fell by 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 many cryptocurrencies have also seen a dip in the past 24 hours.