Binance Coin (BNB) Continues to Fall as Bitcoin Breaks $6000

Binance Coin (BNB) Continues to Fall as Bitcoin Breaks $6000

Binance Coin started 2019 with a strong rally over the previous year, with the coin rising 300 percent through the first four months.

While other cryptocurrencies benefited from the market rally at the beginning of April, BNB continued to outpace the rest, eclipsing its previous all-time high price of $24.50 established in January 2018. However, the price of the currency took a plummeted earlier in the week, as investors responded to news a massive hack impacting the cryptocurrency exchange. The coin has since continued to fall with the broader altcoin market, as BTC surges past $6000 and seeks to further consolidate market dominance.

Binance Coins situation makes for an interesting case-study into cryptocurrency. While the currency has become massively popular thanks to its issuance and close-relationship with the worlds leading cryptocurrency exchange, its also beholden to sudden turn-of-events such as the most recent hack.

Binance was quick to update investors and traders on the status of the security breach, but reported losing 7000 in BTC in addition to a substantial amount of user data siphoned.

We have discovered a large scale security breach today, May 7, 2019 at 17:15:24 (UTC). Hackers were able to obtain a large number of user API keys, 2FA codes, and potentially other info. The hackers used a variety of techniques, including phishing, viruses and other attacks. We are still concluding all possible methods used. There may also be additional affected accounts that have not been identified yet.

Binance claims that the stolen funds were taken only from their hot wallet, thereby sparing the bulk of investor funds, but amounted to 2 percent of the exchanges entire BTC holding. However, the exchange was quick to clarify that the comically self-referential #SAFU Fund will cover losses related to the hack, meaning no trader will lose money because of the most recent security breach.

Nonetheless, investors appear wary to trade in BNB as they were just a week ago. Binance Coin may have led the marketplace in price gains since the start of the year, but is now looking at a potentially severe correction as the exchanges security reputation takes a hit.

Exchange hacks may be a dime-a-dozen in cryptocurrency, but investors are still struggling with the idea of putting money into BNB given its close relationship to Binance. It is worth noting that the currency is capable of operating independent of the exchangelike all cryptocurrenciesbut denotes a substantial amount of its value from the activity generated by Binance.

Binance has managed to generate intrinsic value for BNB, particularly to users of the exchange, by offering trading fee discounts. In addition, the exchange requires investors to hold a substantial amount of BNB in order to participate in Launchpad coin offerings, again blurring the line between the centralization of the cryptocurrency and its use as a tool on the exchange.

As of writing, BNB is down over 8 percent on the day, with the price slipping to $19.25. The majority of the altcoin market has also experienced a price retraction, with BTC dominance approaching its highest point since December 2017.

The post Binance Coin (BNB) Continues to Fall as Bitcoin Breaks $6000 appeared first on Ethereum World News.

09.05.2019 / 12:10 36
Bitcoin at $6000 Could Prove Pivotal for Institutional Investors Bitcoin at $6000 Could Prove Pivotal
As the crypto markets make a slight recovery following their plummet earlier in the week, all eyes turn to the continued price gains of Bitcoin.
Binance Coin (BNB) Falters Pushing Bitcoin Dominance Index to 2019 High Binance Coin (BNB) Falters Pushing
Binance Coin (BNB), the best performing cryptocurrency in 2019, is having hard times maintaining its recent gains despite major developments.
Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise Altcoin Trouble Ahead? Bitcoin (BTC)
On April 23, the crypto markets took a turn that have some questioning the outlook on altcoins. While the altcoin market has been holding its own
Weiss Ratings Suggests Binance Coin (BNB) Could be the Next Bitcoin Weiss Ratings Suggests Binance Coin
While the entire market of cryptocurrency has had a strong 2019, one coin in particular has managed to post 300 percent gains since the start of the
Binance Coin Becomes First Crypto to Surpass January 18 All-Time High Binance Coin Becomes First Crypto to
Binance Coin has had a stellar performance since the beginning of 2019. Up more than 315 percent since January 1. BNB has managed to surpass its
Institutional Investment In Bitcoin Futures Dropped During Price Correction Institutional Investment In Bitcoin
Institutional investment in Bitcoin Futures dropped over the last week, as the crypto markets experienced a price correction following their bullish
Comments (0)
Add a comment
Comment on