CZ Says Community Trusts Binance, as BNB Dropped by Less Than 5% Following BNBChain Hack

CZ remains confident of the community’s trust in Binance, as BNB only dipped by less than 5% despite the recent massive Binancechain hack.

Binance has positioned itself as one of the largest and most trustworthy entities in the cryptocurrency ecosystem. The firm has seen a massive expansion since its inception, building a solid community on its BNBChain network.

Binance CEO Changpeng “CZ” Zhao has reiterated his confidence in the community’s trust in Binance despite the hack a BNBChain-linked bridge recently suffered. According to CZ, BNB dipped by less than 5% after the hack.

CZ’s comments emerged following the hack, as CNBC hosted the 45-year-old Chinese-Canadian business executive on its Squawk Box show Friday. CZ was asked to share his outlook on BNB as it concerns his bullishness on the token, especially considering recent realities. Additionally, he was allowed to share more insight into the token’s utilities.

“BNB has many utility values: you can use it to pay for fees on the BNBChain blockchain network; you can use it to buy airplane tickets, buy food; and you can use it to raise money for your entrepreneur projects; you can use it to sell or buy NFTs,” CZ noted, as he sought to highlight several use cases for BNB.

He further said:

“You can see that even with such a hack that happened overnight, the BNB price dropped less than 5%. So that shows that the confidence on the community that holds BNB are (sic) extremely strong,” CZ added. 

"We can see that even with such a hack that happened overnight the $BNB price dropped less than 5%. That shows the confidence of the community— is extremely strong," says @cz_binance pic.twitter.com/AgwS854Quo

— Squawk Box (@SquawkCNBC) October 7, 2022

Furthermore, CZ mentioned that he remains a big believer in the BNB token, as he has dedicated most of his time to the project. Speaking further, Zhao expressed his confidence in the developers and the holders of the BNB asset. CZ also shared more insight on prospects following the hack. He noted that the team would learn from the mistakes to ensure that the project’s codes are more secure. 

“We just got to learn how we can learn from these kinds of mistakes and make our code more secure. Software code is never bug-free; we were able to minimize quite a lot of the damage.”

He acknowledged that software codes are oftentimes ridden with bugs. Notwithstanding, he admitted that bugs with blockchain codes induce more pain, as financial losses are experienced when these bugs are exploited. “We were able to minimize quite a lot of the damage to less than $100M now,” CZ remarked regardless.

Addressing the concerns of blockchain security, CZ pointed out that the BNB blockchain itself has “no problem,” as the hack occurred through the exploitation of a bridge. He similarly highlighted previous bridge hacks but noted that each bridge is different, so certain bugs unique to a bridge might not be discovered in time.

The BNBChain-linked Exploit

Recall that hackers recently exploited a bug in a BNBChain-linked cross-chain bridge overnight. The hackers were able to move up to 2 million BNB tokens ($566M) from the chain.

Notwithstanding, due to the Binance team’s swift response, the damage was minimized to an estimate between $100M and $110M. Binance had to temporarily suspend on-chain activities on the BNBChain to control the situation. Network activities are back up as of press time.

Following reports of the hack, BNB tanked by over 3%. The asset is changing hands at $282 as of press time, down 3.98% in the past 24 hours. BNB’s dip does not set it apart from the broader crypto market, as most crypto assets have also seen a dip in the past 24 hours.