Binance has been on the news agenda a lot lately, so we decided to collect all the most important aspects for you. The suspension of Binance's own network due to the hacking of the firewall, the quarterly burning of BNB tokens and the results of the first month of automatic conversion of a number of stablecoins into BUSD.

We recently wrote that Binance had launched an automatic conversion of a number of stablecoins into its own - BUSD. At the time this step was evaluated positively by the teams that work with stablecoins, because the atomic BUSD conversion was supposed to make life easier for ordinary users. But there were also those who said that this step would benefit, first of all, Binance itself.

October 6 Delphi_Digital shared with users on Twitter data on how the market capitalization of BUSD and automatically converted stablecoins has changed.

According to the chart, BUSD's market capitalization has grown by 10% in a month. While the market capitalization of other stablecoins has declined. TUSD lost 17% of its market capitalization, USDC lost 11%, and USDP lost 5%.

It is curious what the indicators will be next month and whether there will be any reaction from the creators of USDC, USDT, TUSD and USDP.

The next day, on October 7, the Binance team tweeted about the suspension of its own BNB chain. At first, users were informed that the suspension was due to "irregular activity", but later it became known as an attack on the firewall bridge.

Later, it was revealed from an official BNB message that:

  • The attack occurred on the inter-network bridge between occurred between BNB Beacon Chain (BEP2) and BNB Smart Chain (BEP20 or BSC);
  • As a result of the attack, hackers managed to withdraw 2 million BNB;
  • The shutdown of the decentralized network became possible thanks to the joint work of the team and 26 validators from the BNB Smart Chain network.

As for the damage from the exploit, according to BNB statements, approximately 100-110 million dollars were withdrawn from the BSC network. However, a Twitter user conducted his own investigation by tracking the attacker's wallet on Debank and Block Explorer. According to his estimate, the attacker owns $410 million.

Also, it is interesting in this story on how quick Binance halted its chain. Didn’t look like a decentralized entity. Worked more like an army command.

Despite their troubles, Binance conducted its quarterly burn of BNB tokens. This time, the company destroyed 2.06 million BNB, which is approximately $547 million.

The burning of tokens is necessary in order to reduce the emission by reducing the amount of tokens. This helps to reduce the inflation rate and increases the value of the crypto asset.

While Binance is actively struggling with difficulties and trying to strengthen its position in the market, we will continue our observations and share the news with you.

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