Security

Cryptofinancial Impact: Binance Hack

Looking into the Binance exchange hack

Using Inca’s Splunk-based Cryptofinancial data solutions, I take a quick look at the recent Binance exchange hack.

On May 07, 2019 over 7,000 BTC was successfully transferred from the Binance hot wallet, an amount currently worth more than $40 million.

View of Binance BTC Transactions. Source: <a href="https://inca.digital/products#data">Inca Digital</a>
View of Binance BTC Transactions. Source: Inca Digital

The CEO of Binance, Changpeng Zhao, quickly responded to the hack on twitter telling customers that the loss would be covered from the exchange’s Secure Asset Fund for Users (SAFU). Initially, there was discussion of potentially Pushing for Bitcoin Rollback. This would be near impossible to achieve and likely would have caused a serious dispute within the bitcoin community, something Changpeng Zhao recognized:

Snapshot of <a href="https://twitter.com/cz_binance">CZ Binance Tweets</a>
Snapshot of CZ Binance Tweets

We can visualize the community responding to and discussing the event in Inca Digital, real-time. By parsing the mentions and sentiment of natural language activity related to Binance, we can see a large increase in buzz following the hack. Binance is currently being discussed heavily in comparison to events associated with other exchanges.

Exchange Sentiment Comparison (24h). Source: <a href="https://inca.digital/products#data">Inca Digital</a>
Exchange Sentiment Comparison (24h). Source: Inca Digital

Natural Language Analysis of Binance Mentions (7d). Source: <a href="https://inca.digital/products#data">Inca Digital</a>
Natural Language Analysis of Binance Mentions (7d). Source: Inca Digital

Despite the negative press, the community seems to be acknowledging Binance’s swift response to the issue. This, however did not stop the price of BNB from quickly responding:

Price for BNB across INCA trusted exchanges (24h). Source: <a href="https://inca.digital/products#data">Inca Digital</a>
Price for BNB across INCA trusted exchanges (24h). Source: Inca Digital

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