Many people have overlooked the impact of this Binance hack.
Binance was hacked for $6.34 billion. Although $2.8 billion was later intercepted, the intercepted funds were mostly stablecoins, and whether they’re frozen or not won’t affect coin prices.
But the remaining $3.6 billion is different. Those are crypto assets, and the hackers will definitely sell them. Binance says it will replenish its treasury, but that money will come from its own cold wallet and SAFU fund. Essentially, that adds $3.6 billion in supply to the market.
Binance may even have to sell its own coins to make up for those stablecoin assets. In the current market, it’s hard to absorb such a large supply. Market makers propped things up for a while recently, but it now looks like they’re about to pull their orders too.
$btc $eth
Binance was hacked for $6.34 billion. Although $2.8 billion was later intercepted, the intercepted funds were mostly stablecoins, and whether they’re frozen or not won’t affect coin prices.
But the remaining $3.6 billion is different. Those are crypto assets, and the hackers will definitely sell them. Binance says it will replenish its treasury, but that money will come from its own cold wallet and SAFU fund. Essentially, that adds $3.6 billion in supply to the market.
Binance may even have to sell its own coins to make up for those stablecoin assets. In the current market, it’s hard to absorb such a large supply. Market makers propped things up for a while recently, but it now looks like they’re about to pull their orders too.
$btc $eth
