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Binance Coin: BNB token price slides amid fallout from $100 million hack

By Raphael Sanis

Edited by Charlie Mellor

09:36, 10 October 2022

BNB cryptocurrency in a red bubble
Following the hack, BNB has dropped by 7% over the past month – Photo: Shutterstock

Binance’s BNB cryptocurrency witnessed a sharp price drop over the weekend as its native blockchain saw a $100m hack on 6 October.

BNB to USD

A vulnerability on the BNB Chain’s cross-chain bridge, known as the BSC Token Hub, saw roughly $570m worth of BNB targeted by an attacker. However, Binance CEO Changpeng Zhao said the hacker was only able to escape with around $100m.

Zhao reassured investors via Twitter that the issue was “contained” and their funds were safe.

BNB’s bearish price 

The price of BNB was hit hard by this attack. It fell by 6% on 6 October, the day of the attack, from a daily high of $297.70 to a low of $279.80.

Despite the resolution of the hack, it continued to plummet throughout the following days. It stooped to a low of $275.46 on 9 October.

At the time of writing, on 10 October, BNB was trading at around $273.77, down 4% over the past seven days and 7% on the previous month.

DOGE/USD

0.12 Price
-2.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BCH/USD

378.75 Price
-2.820% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

XRP/USD

0.63 Price
+6.500% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

64,746.75 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

However, it has managed to sustain its position as the fifth largest cryptocurrency by market capitalisation.

A suspended blockchain

After news broke of the $570m hack, Binance suspended part of its blockchain.

The BNB Chain is split into two, the Beacon Chain and the BNB Smart Chain (BSC). It is BSC that is dedicated towards the smart contract functionality, giving the blockchain the power to run decentralised applications (dApps) and communicate with other blockchains.

However, this cross-chain capability was responsible for the recent hack with the attacker exploiting the BSC Token Hub cross-chain bridge.

BSC was briefly suspended after the exploit to minimise the damage. The blockchain was then back up and running on 7 October. It said in a blog post:

“Decentralised chains are not designed to be stopped, but by contacting community validators one by one, we were able to stop the incident from spreading… This delayed closure, but we were able to minimize the loss.”

The post concluded: “A new on-chain governance mechanism will be introduced on the BNB Chain to fight and defend future possible attacks.”

Markets in this article

BNB/USD
Binance Coin / USD
579.40 USD
-2.66 -0.460%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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