📰 Binance CEO Changpeng Zhao announced that they do not sell Bitcoin to protect the price of BNB. This claim concerned a fragile DeFi loan on the Venus protocol that was at risk of liquidation if the value of BNB dropped. 💡
- In October 2022, a hacker generated 2 million BNB and deposited 900,000 of them to Venus, taking out a loan worth $150 million in exchange for USDT and USDC.
- If the price of BNB drops, there is a risk of liquidation and the possibility of a major BNB market crash.
- However, analysts think that BNB Chain will not affect the market in case of liquidation.
Stating that Binance and BNB Chain are separate companies, analysts stated that Binance is unlikely to finance the loan by selling BTC. Changpeng Zhao also shared similar views. 🚀