Binance Coin (BNB) Plummets: $200 Million Losses Imminent
Key Points:
- Binance Coin (BNB) drops over 7% in 24 hours and 14% in 7 days due to increased regulatory scrutiny by the SEC and broader market trends.
- There is a potential liquidation of $200M on Venus DAO if the BNB price drops by 14%.
- The exploit on BNB bridge puts Binance Coin in a precarious position and highlights the vulnerabilities of the DeFi ecosystem.
Binance Coin (BNB) has been one of the most successful cryptocurrencies in recent years, experiencing a significant increase in value since its launch in 2017.
However, the coin’s value has plummeted recently following regulatory scrutiny by the Securities and Exchange Commission (SEC) and the complaint against Binance.US.
Currently, Binance Coin is trading at $260, which is a decrease of over 7% in the last 24 hours and 14% over the past seven days. The decrease in value is attributed to increased regulatory scrutiny and market trends.
The BNB bridge has suffered an exploit that has put Binance Coin in a precarious position, with a potential liquidation of $200 million on Venus Decentralized Autonomous Organization (DAO) looming if the price drops by 14% to $220. Venus DAO is a community-driven organization that governs the Venus Protocol, which is a decentralized lending and borrowing platform built on the Binance Smart Chain. The Venus Protocol allows users to borrow and lend cryptocurrencies and earn interest on their holdings.
According to researcher DeFi Ignas, the exploit occurred on October 7th, 2022, when an attacker minted 2 million BNB ($593 million) and deposited 900,000 BNB as collateral to Venus. They then borrowed other assets on Venus to launder as much money as possible, making this the single largest potential liquidation in all of Decentralized Finance (DeFi), with no possible solution to close the position.
The BNB Chain was halted to upgrade the network after the exploit, and the Binance Bridge hack now ranks as the third-largest overall hack. All three of the top hacks have been cross-chain bridge exploits, highlighting the vulnerabilities of the DeFi ecosystem.
To prevent any cascading liquidations, the BNB Chain will liquidate the position itself, according to Ignas. However, the good news is that Venus DAO has voted to whitelist BNB Chain as the sole liquidator of the Binance Coin exploiter address. This move should help to prevent any further market disruptions and provide some stability to the market.
Furthermore, the blockchain and data research firm Nansen has reported that the net outflows from major cryptocurrency exchanges Binance and Coinbase have decreased in the 24 hours following the news of the SEC’s lawsuit against Coinbase. The outflows retraced to $491.9M and $105.3M, respectively. This is in contrast to the situation 24 hours after the SEC sued Binance, when Binance’s netflow was $78M positive. However, after the SEC filed to seek a temporary restraining order to freeze Binance’s US assets, Binance’s netflow turned negative, dropping to -$123.6M.
The decrease in net outflows from Binance and Coinbase suggests that investors are becoming more cautious in light of the SEC’s legal actions against major cryptocurrency exchanges. The SEC’s lawsuit against Coinbase, in particular, has raised concerns about the regulatory scrutiny faced by the crypto industry as a whole. Overall, the recent events have had a significant impact on Binance Coin, and it remains to be seen how the market will react in the coming days.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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Binance Coin (BNB) Plummets: $200 Million Losses Imminent
Key Points:
- Binance Coin (BNB) drops over 7% in 24 hours and 14% in 7 days due to increased regulatory scrutiny by the SEC and broader market trends.
- There is a potential liquidation of $200M on Venus DAO if the BNB price drops by 14%.
- The exploit on BNB bridge puts Binance Coin in a precarious position and highlights the vulnerabilities of the DeFi ecosystem.
Binance Coin (BNB) has been one of the most successful cryptocurrencies in recent years, experiencing a significant increase in value since its launch in 2017.
However, the coin’s value has plummeted recently following regulatory scrutiny by the Securities and Exchange Commission (SEC) and the complaint against Binance.US.
Currently, Binance Coin is trading at $260, which is a decrease of over 7% in the last 24 hours and 14% over the past seven days. The decrease in value is attributed to increased regulatory scrutiny and market trends.
The BNB bridge has suffered an exploit that has put Binance Coin in a precarious position, with a potential liquidation of $200 million on Venus Decentralized Autonomous Organization (DAO) looming if the price drops by 14% to $220. Venus DAO is a community-driven organization that governs the Venus Protocol, which is a decentralized lending and borrowing platform built on the Binance Smart Chain. The Venus Protocol allows users to borrow and lend cryptocurrencies and earn interest on their holdings.
According to researcher DeFi Ignas, the exploit occurred on October 7th, 2022, when an attacker minted 2 million BNB ($593 million) and deposited 900,000 BNB as collateral to Venus. They then borrowed other assets on Venus to launder as much money as possible, making this the single largest potential liquidation in all of Decentralized Finance (DeFi), with no possible solution to close the position.
The BNB Chain was halted to upgrade the network after the exploit, and the Binance Bridge hack now ranks as the third-largest overall hack. All three of the top hacks have been cross-chain bridge exploits, highlighting the vulnerabilities of the DeFi ecosystem.
To prevent any cascading liquidations, the BNB Chain will liquidate the position itself, according to Ignas. However, the good news is that Venus DAO has voted to whitelist BNB Chain as the sole liquidator of the Binance Coin exploiter address. This move should help to prevent any further market disruptions and provide some stability to the market.
Furthermore, the blockchain and data research firm Nansen has reported that the net outflows from major cryptocurrency exchanges Binance and Coinbase have decreased in the 24 hours following the news of the SEC’s lawsuit against Coinbase. The outflows retraced to $491.9M and $105.3M, respectively. This is in contrast to the situation 24 hours after the SEC sued Binance, when Binance’s netflow was $78M positive. However, after the SEC filed to seek a temporary restraining order to freeze Binance’s US assets, Binance’s netflow turned negative, dropping to -$123.6M.
The decrease in net outflows from Binance and Coinbase suggests that investors are becoming more cautious in light of the SEC’s legal actions against major cryptocurrency exchanges. The SEC’s lawsuit against Coinbase, in particular, has raised concerns about the regulatory scrutiny faced by the crypto industry as a whole. Overall, the recent events have had a significant impact on Binance Coin, and it remains to be seen how the market will react in the coming days.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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