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BNB sides with bulls as Binance adopts safety measures to combat DeFi hacks

  • A Joint Anti-Scam Campaign was launched by Binance to combat crypto-related scams.
  • High-profile hacks have eroded customers’ confidence in centralized exchanges. 

The world’s largest cryptocurrency exchange, Binance was at the center of a sensational $570 million hack in October last year.

Hackers exploited a bug in the BNB chain’s smart contract and transferred about 2 million tokens into their wallets. Following the hack, Binance had to immediately suspend withdrawals and deposits.

One of the biggest breaches in the crypto space, the incident raised questions on the security of decentralized finance (DeFi). But the question is- Have corrective measures been taken?

Read Binance Coin [BNB] Price Prediction 2023-24

Binance launches anti-scam campaign

On 5 March, Binance announced that it will partner with law enforcement agencies worldwide to combat crypto-related scams.

The exchange said that it launched the Joint Anti-Scam Campaign which will include sending alerts, crime prevention messages, and other helpful tips whenever users initiate a withdrawal on Binance.

The exchange added that it started this campaign with Hong Kong first and the project showed good results.

Hacks have dented traders’ confidence

It’s important to note that these high-profile hacks coupled with the FTX collapse, have eroded customers’ confidence in centralized exchanges (CEXs).

Analysis from Dune Analytics revealed that trading volume on CEXs dipped considerably since November while decentralized exchanges (DEXs) saw a substantial uptick.

From about $1 billion at the start of October 2022, the daily DEX volume exploded beyond $6 billion in a month’s time.

Source: Dune Analytics

Additionally, as per Binance’s proof of reserves data, its total balance dropped from $44.4 billion in early October to $33 billion by the end of December, a fall of nearly 21%. This indicated that liquidity on the exchange was impacted to a great extent.

How much are 1,10,100 BNBs worth today?

Binance has been facing a lot of regulatory heat of late. As per a report by Bloomberg, a U.S. Securities and Exchange Commission (SEC) lawyer has said that most of the SEC staff believed that Binance.US was operating an unregistered securities exchange.

At the time of writing, its token BNB exchanged hands at $290.39 with slight gains from the previous day, as per CoinMarketCap. As a result of increased scrutiny from U.S. regulators, the coin lost 10% of its value over the past month.

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