- Crypto analyst says BNB could see a massive decline if it doesn’t reclaim $240.
- BNB hacker loses tokens used as collateral for loan on Venus Protocol following BNB price decline.
- He Yi says Binance will burn the BNB collateral once the account is liquidated.
With the effect of the market decline still fresh, BNB could be expecting more troubled days ahead. According to Twitter crypto analyst Ali Charts, the recent market downswing shows that several altcoins could be teetering on the edge of a bear fall.
Notably, the analyst mentioned that if BNB fails to reclaim $240 as support, then the token could see a decline of 20 – 30%. BNB, which is the native token of the BNB Chain ecosystem, has seen unease these past few days due to the sudden market crash last week.
Negative sentiments in the crypto market increased last week after Bitcoin, the largest cryptocurrency, saw a sharp decline in its price. Several major cryptocurrencies also posted similar losses, culminating in what has been an overall market downturn.
In related news, the effect of the market decline seems to have hit the hacker behind the BNB exploit last year. The attacker, who cart away over $600 million in the BNB Bridge exploit last October has been negatively affected by the drop in BNB price.
The hacker had reportedly borrowed nearly $150 million in stablecoins on Venus Protocol using tokens from the October exploit. According to multiple reports, the hacker used 900,000 BNB worth about $197 million at Friday’s market price as collateral on Venus. As soon as the BNB price fell below $220, the collateral holdings in the cryptocurrency wallet were instantly liquidated.
Blockchain news outlet Wu Blockchain reported that the address has 784,616 BNB collateral and a $124 million USDT and USDC debt position. The report further added that He Yi, co-founder of Binance, informed the community that the collateral of Venus is covered by Binance.
Per the report, once the price of BNB falls, Binance will liquidate in time. However, Yi assured that the liquidation would not affect the secondary market price of the token.
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