In recent days, as BNB's cross chain hacker Venus account positions have begun to clear, external encryption KOLs have begun to focus on discussing BNB's future trends. Pessimists believe that BNB may follow the same path as FTT and lead to a collapse, and even compare the historical trends of the two, causing community panic
In recent days, as BNB's cross chain hacker Venus account positions have begun to clear, external encryption KOLs have begun to focus on discussing BNB's future trends. Pessimists believe that BNB may follow the same path as FTT and lead to a collapse, and even compare the historical trends of the two, causing community panic. As follows:
The question is, how much pressure will BNB's recent liquidation cause on the market? First of all, the conclusion is that there will be no significant impact. The BNB position liquidation on Venus will be taken over by the BNBChain team, and it will not be thrown into the market, let alone large-scale serial liquidation.
The cause of the incident began in October last year when a hacker used a vulnerability in the BNB cross chain bridge BSCTokenHub to steal approximately 2 million BNBs. At that time, the BNB was priced at $280 and had a total value of approximately $560 million. Subsequently, the hacker deposited 924821 BNBs into the loan agreement Venus, lent approximately $152 million in stable currency (including 116 million USDT and 36 million USDC), and transferred them to other chains.
After the accident, BNBChain immediately released a new version of BSCv1.1.15, which can prevent hacker account related activities. At the same time, the BNBChain node program uses blacklist and pause functions to prevent the flow of stolen funds and potential attacks. Simply put, the hacker's wallet address assets (the remaining 1.02 million BNBs and other stable currency assets in the wallet) are restricted from being transferred - to some extent, the wallet assets have been permanently frozen, and only 900000 BNBs have been truly stolen by the hacker.
At this point, the only headache for all parties is how to handle BNB assets that are already collateral in Venus? Direct zero cost recovery and destruction means Venus will face a huge deficit of $150 million, and Venus' depositors clearly do not agree; If the Venus agreement is left to operate on its own and reaches the clearing price, it will automatically be thrown into the market, and a large amount of BNB will lead to chain clearing, further suppressing the price of BNB, which is also not in Binance's immediate interest.
In the end, Binance decided to bear the losses and proposed a proposal called VIP-79 in the Venus community, which was approved. The specific content was to use a whitelist address controlled by the BNBChain core team as the only clearing agent for the position, in order to safely control this ultra large BNB supply and avoid direct chain liquidation. Moreover, Binance has promised that the cleared BNB will not be thrown into the market, but will be destroyed after recovery
At that time, the clearing price of the BNB position on the Venus hacker address was about 220USDT, and the spot price of BNB approached this point. BNBChain then transferred 30 million USDT to the whitelist address as backup clearing funds to prevent the impact of short-term price drops. Interestingly, in the following weeks, BNB prices began to rise, hitting 400USDT at one point and getting further away from the liquidation threshold. Discussions about BNB liquidation selling pressure also gradually decreased
Until June 12th of this year, BNB prices continued to decline, once again approaching the clearing line of $220, attracting the attention of the encryption community. BNBChain also promptly replenished $30 million in stable currency to address the challenge. This time, the BNB price remains strong around $220 and has started to rebound, once again avoiding liquidation.
It was not until August 18th that the BNB position in the Venus hacker address began to clear (with a health coefficient below 1), as the BTC price plummeted and the BNB price ultimately broke through $220. On chain data shows that on August 18th, a total of 6.7431 million vBNBs (VenusBNB) were liquidated, and BNBChain addresses paid over $30 million to recover approximately 140000 BNBs. At this point, the BNB clearing price decreased to around $211, leaving 784615BNB in the hacker's address. As follows:
On the evening of August 21st, the price of BNB fell below $211, triggering another liquidation, with a total of approximately $6.88 million being liquidated. The BNB was cleared and BNBChain paid over $3000 to recover approximately 156200 BNBs. As follows:
As of now, there are 628337 BNBs left in the hacker account position, and the Venus account health coefficient has returned to 1.07. According to estimates, the next round of liquidation price is approximately $199- the current BNB price is $213, which needs to be reduced by 6.5%. The loan amount for this account is approximately $94.21 million, and the breakeven point between debt and collateral is approximately $150: in other words, as long as BNB remains above this price, Venus will not experience financial losses.
Overall, in the past few days, BNBChain has paid a total of $60 million to recover 296400 BNBs, with little impact on the market. BNB prices have dropped from a low of $220 to $203, with a maximum drop of 7.7%. Currently, BNB prices have only fallen by 31% compared to $220 on the 18th, while BTC prices have decreased by 2.3% over the same period.
However, under the agitation of those with intentions, BNB seems to have become the twilight of the end, even the second FTT. In fact, the situation Binance is facing this time is completely different from FTX: FTX misappropriates assets, resulting in a gap of tens of billions of dollars. Binance only settles $150 million in hacker debt, and the entire process is transparent and public
I don't understand why people are worried about this small $180 million liquidation. BNB is not some random garbage with zero liquidity, and Coin Security can easily handle this issue. They have dealt with bigger things in the past. I can understand the risks Venus faces, but I think Binance can easily handle nearly $200 million liquidation and even destroy these tokens. "commented Abdul Rafay, co-founder of cryptocurrency investment platform Zignaly.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
