The well-known blockchain security firm PeckShield tweeted that if the price of Binance Coin (BNB) significantly declines, a sizeable chunk of BNB may be liquidated.
The community disagrees, stating that the contrary is expressed by the evidence.
920,000 BNB may be liquidated if this occurs
According to a recent tweet by PeckShield, if the price of BNB drops by more than 20% from where it is now, 920,000 BNB, or around $204.8 million, will be liquidated and given to the BNB Chain team. This is done to mitigate the effects of Binance’s Venus Protocol exploit, which happened in the autumn of last year, and stop Venus from running out of fuel.
The BNB Chain team stated that none of these BNB tokens will enter the market in an earlier tweet, which has already been deleted and replaced by a new one.
According to a recently released tweet, should the BNB price drop from its current level of $222 per coin to $220, the hacker of the BNB Chain’s cross-chain bridge would assume control. They deposited 920,000 BNB to the Venus Protocol. This is less than half of the two million BNB that the exploiter was able to get away with following the attack in October 2022.
PeckShield also made reference to a recent tweet from BNB Chain, in which it is mentioned that the cross-chain bridge of the BNB Chain was hacked in October 2022.
According to the tweet, BNB Chain submitted a governance proposal in November 2017 that was approved by the neighbourhood in order to “whitelist liquidation of the BNB Bridge exploiter’s position exclusively to @BNBChain.” Its purpose is to safeguard “the misappropriated assets and preventing any further impact and sell off from liquidating.”
The “Smart Wallet” tracker @lookonchain initially tweeted about the potential liquidation of the aforementioned $204.8 million worth of BNB, but the BNB Chain team didn’t reply to that until today.
The $30 million in USDT that Binance delivered to the liquidation account will be utilised to settle the Venus Protocol debt owed by the BNB bridge attacker.
