Binance Smart Chain: Hacked

Earlier this morning the Binance Smart Chain was hacked for over $600M USD. As this is a developing story, we will get you up to speed and share new insights as we learn more.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

BSC funds moving cross chains

Since the hack of 2 million units of BNB has occurred, the hacker(s) are quickly moving funds across bridges, DEXs and liquidity pools in order to obfuscate the assets. This makes it harder for the assets to be "rolled back".

The latest tweet from the official BNB twitter page states, "initial estimates for funds taken off BSC are between $70M - $80M. However, thanks to the community and our internal and external security partners, an estimated $7M has already been frozen".

The problem here, other than the sheer size of the compromised funds, comes down to the veil of decentralisation theatre being lifted. Although not ideal, the ability to cancel transactions and freeze assets that don't comply with the central authorities is very much like the legacy financial system. Ultimately, BNB will move past this debacle and user(s) for the most part will be made whole but at the cost of no longer remaining neutral. Regardless of your views though, it might be an opportune time to consider buying the dip if you're a BNB fan.

DXY parabola remains intact

Raging US Dollar strength remains the constant theme of 2022. After a short pullback, many were calling that the top was in (again). Since the start of the year, the DXY is up over 25% and although we are ardent supporters of Bitcoin, ultimately believing it will win out as the harder currency, we have to recognise the systemic structural issues of other fiat currencies. These issues bring all the liquidity, flow and relative strength back to the US dollar, a case of being the cleanest shirt in a dirty laundry pile. With the release of US job reports happening later this evening, US inflation rate being released next week and the FED meeting on interest rates set to occur at the start of November, the only way this trade gets unstuck in 2022 will be for a monumental policy shift from the FED.

BTC/USD key levels

Bitcoin back below $20,000 USD again. This price action is completely anaemic and a traders' worst nightmare as the lack of volatility is causing plenty of false signals to occur. As it stands now, it's best to leave the 10% rangebound trading to the market makers. Look for a breakout to the upside with a close above $20,554. To the downside, watch for a breakdown of $18,549. One thing is for certain, volatility is coming.

ETH/USD key levels

The same "paint drying" price action is occurring on Ethereum. We are simply waiting for a breakout either way due to the muted volatility. The downside level is $1,241 USD, if we lose this handle then it's lights out on ETH. To the upside, we need to see $1,400 reclaimed for a strong run up to local highs. Either way, volatility is coming, it will simply be a matter of time.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

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