- PeckShield, a well-known blockchain security firm, has recently used Twitter as a platform to notify the public about the possibility of a significant liquidation of Binance Coin (BNB) if the price of BNB experiences a significant downward trend.
- According to a recent tweet from PeckShield, if the price of BNB were to decrease by more than 20% from its current level, approximately 920,000 BNB valued at around $204.8 million would be liquidated to the BNB Chain team.
PeckShield, a well-known blockchain security firm, has recently used Twitter as a platform to notify the public about the possibility of a significant liquidation of Binance Coin (BNB) if the price of BNB experiences a significant downward trend. However, the community holds a different perspective, asserting that there is contrary data available to support their viewpoint.
Potential Liquidation Alert: 920,000 BNB at Risk in Bearish Scenario
According to a recent tweet from PeckShield, if the price of BNB were to decrease by more than 20% from its current level, approximately 920,000 BNB valued at around $204.8 million would be liquidated to the BNB Chain team. This action aims to mitigate the consequences of the Venus Protocol exploit that took place in the previous autumn and prevent a shortfall in Venus.
In an earlier tweet, which has since been replaced, the BNB Chain team stated that none of these BNB tokens would enter the market.
However, the new tweet reveals that the hacker responsible for the BNB Chain’s cross-chain bridge made a deposit of 920,000 BNB into the Venus Protocol. If the price of BNB were to decline to $220 per coin from the current level of $222, the BNB Chain team would take over that position. Notably, this amount is nearly half of what the exploiter managed to obtain during the hack in October 2022, which amounted to two million BNB.
#PeckShieldAlert ~$204.8M worth of $BNBfaces liquidation if the price drops below -20% of its current value. The BNBChain’s Cross-Chain Bridge (0x489a) has deposited 920,000 BNB ($255,897,935) into @VenusProtocol, and their position is subject to liquidation at a price of ~$220… pic.twitter.com/uCoanA5aId — PeckShieldAlert (@PeckShieldAlert) June 12, 2023
PeckShield also made mention of a recent tweet by the BNB Chain, which discusses the hack that occurred in October 2022 involving the BNB Chain’s cross-chain bridge.
According to the tweet, in November of the previous year, the BNB Chain submitted a governance proposal that was approved by the community. The purpose of this proposal was to authorize the exclusive whitelisting of the exploiter’s position from the BNB Bridge to the @BNBChain. The objective behind this action is to safeguard the misappropriated assets and prevent any additional negative consequences or sell-offs resulting from the liquidation.
In November 2022, @BNBCHAIN submitted a governance proposal which was passed by the community to whitelist liquidation of the BNB Bridge exploiter’s position exclusively to @BNBChain core team for the purpose of securing the misappropriated assets and preventing any further… — Venus Protocol (@VenusProtocol) June 12, 2023.
A tweet regarding the potential liquidation of the mentioned $204.8 million worth of BNB was initially posted by the “Smart Wallet” tracker, @lookonchain, one week ago. However, the BNB Chain team has only recently provided a response to this tweet.
Binance has sent $30 million in USDT to the liquidation address, which will be utilized to settle the debt incurred by the attacker of the BNB bridge within the Venus Protocol.
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