The attack on BNB Smart Chain was one of the most talked-about events in the cryptocurrency world last year. The destruction of a bridge worth $568 million between chains shook the market. What were its effects and how did it impact other currencies such as Bitcoin and Ether?
In October 2022, the cryptocurrency market was shaken by news of an attack on the BNB Smart Chain. Due to a breach in the inter-chain bridge security, hackers acquired over 2 million BNB coins, estimated to be worth close to $568 million.
However, this story doesn’t end with the attack itself. On August 18, 2023, we witnessed another significant event. Over $53 million was liquidated on the Venus Protocol lending platform. This money was meant to secure a loan of 30 million Tether (USDT), taken out by the aforementioned hacker, and the funds were tied to the BNB Smart Chain.
The aftermath was felt throughout the market. Market capitalization fell by 6%, significantly affecting other cryptocurrencies and causing the value of BNB to drop below $220.
It wasn’t only BNB that felt the consequences of this turmoil. Bitcoin experienced a significant drop, with its price falling below $27,000. Even though this cryptocurrency is slowly recovering, there aren’t promising signs of significant gains.
Ether also suffered due to these events. Its value dropped below $1,700. Thanks to the Lookonchain portal, a sale of Ether by one of the market’s whales was detected, amounting to almost $41 million. According to unofficial sources, this decision allowed him to avoid a potential loss of $5 million.
The total drop in market capitalization amounted to as much as $1.1 billion. Investors are eagerly awaiting a rebound, trying to capitalize on every opportunity currently offered by the cryptocurrency market.
Hacking attacks on cryptocurrency platforms are not new, but their scale and impact on the global market continue to surprise. The events related to BNB Smart Chain serve as another reminder that the world of cryptocurrency, although promising, also carries risks.
