This Binance-related entity intends to sell $205 million worth of Binance Coin (BNB) if its price action turns negative
Prominent blockchain security company PeckShield has taken to Twitter to announce that a substantial amount of Binance Coin (BNB) may be liquidated if the BNB price takes a major bearish turn.
However, the community disagrees, claiming there is data that expresses the opposite.
920,000 BNB may be liquidated if this occurs
A recent tweet posted by PeckShield stated that should BNB decline more than 20% of its current price level, 920,000 BNB worth roughly $204.8 million would be liquidated to the BNB Chain team. This is to soften the consequences of Binance’s Venus Protocol exploit that occurred in the fall of last year and prevent the shortfall of Venus.
In an earlier tweet, which has now been removed (replaced by a new one instead), the team of the BNB Chain claimed that none of these BNB tokens would hit the market.
The newly published tweet says that the hacker of the BNB Chain’s cross-chain bridge made a deposit of 920,000 BNB to the Venus Protocol, and should the BNB price fall to $220 per coin from the current level of $222, they will take over that position. This is nearly half of what the exploiter managed to get away with in October 2022 after the hack — two million BNB.
#PeckShieldAlert ~$204.8M worth of $BNB faces 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 referred to a recent tweet of BNB Chain, which mentions the October 2022 hack of the BNB Chain’s cross-chain bridge.
The tweet says that in November last year, BNB Chain filed a governance proposal passed by the community in order to “whitelist liquidation of the BNB Bridge exploiter’s position exclusively to @BNBChain.” The goal of this is to secure “the misappropriated assets and preventing any further impact and sell off from liquidating.”
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 about the possible liquidation of the aforementioned $204.8 million worth of BNB was first published by “Smart Wallet” tracker @lookonchain a week ago, but the BNB Chain team responded to that only today.
The $30 million in USDT that was sent to the liquidation address by Binance will be used to repay the debt of the BNB bridge attacker in the Venus Protocol.
#Million #BNB #Liquidated #Happen