BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

The world’s largest cryptocurrency exchange is observing an attack on its token chain and cryptocurrency. In response, Binance Coin’s price began falling on the charts making the investors highly concerned.

Binance Coin Chain - Exploited!

While reports of an exploit began appearing on October 6, there was no verifiable source that could confirm it. PeckShield alert first notified Binance and then revealed to the world that about 1 million BNB was claimed by the exploit. In the same tweet, Peckshield alert mentioned that $586 million in total had been exploited.

Moments after Peckshield alert informed the world, Binance announced the confirmation of this news. While Binance officially called the chain just under maintenance, the crypto exchange stated that all deposits and withdrawals on the BNB Chain had been suspended. 

Much clearer confirmation came at the hands of Binance Coin Chain's social media account. Reiterating the suspension of the services, the account tweeted, 

“To confirm, we have suspended BSC after having determined a potential exploit. All systems are now contained, and we are immediately investigating the potential vulnerability. We know the Community will assist and help freeze any transfers. All funds are safe.”

However, the reason behind the exploit, and the current status, have still not been revealed. But the impact of the same is already beginning to appear on the price.

Binance Coin takes a hit

Trading at $284.1, Binance Coin noted a straight price fall of almost 4% in October despite the presence of an active uptrend. The black dots of the Parabolic SAR highlight that the altcoin is still in an uptrend on the broader timeframe. 

Binance Coin 24-hour price chart

This verifies that the fall in price was triggered by the exploit. Since, over the last few weeks, the price has mostly remained sideways bound, we shouldn’t be worried about excessive fluctuation on the charts. Stuck within the $260 to $340 range of highs and lows since mid-August, BNB is mostly likely going to continue making no major change on the charts,