In today's edition of YIYL, we put our laser eye'd focus on one of the biggest shitcoin casinos in the space, Binance. The exchange that no one knows where it really is, but has global reach and continues to gobble up normies money who want to get into tokenised gambling space felt it wasn't enough to simply have a large share of the KYC market.
So they pulled some Cosmos SDKs and forked some ETH code and viola, Binance Smart Chain, was born, a proof of stake chain where Binance runs all the nodes and you're just using it because it's cheaper to DEGEN on here than on ETH so all those priced out of trading on ETH came to Binance.
That didn't last very long with L2s and other shitcoin EVM chains springing up to replicate the Binance model, but because BSC was first, and have the backing of the exchange, they were always going to retain their position as the second grifter to Ethereum.
A bridge towards fucking nowhere
This week we saw the relatively popular blockchain Binance Smart Chain do some pretty dumb shit. Oh before I forget they are dropping the smart and I guess this is a great time to do it.
Binance is trying to rebrand as "BNB Chain" and while they focus more on marketing and less on security, they were left red-faced as they chose to halt when a user was able to move at least $100 million of crypto off the chain.
While most reports quote the $100 million number, some claim it could be as high as $600 million and I guess we will have a blockchain post-mortem once the dust settles.
If we have a look at their chain data and the users wallet there are over 400 million in the wallet right now.
How did it all go down?
According to Zane Huffman, who works at Vesper Finance, a platform that gives users access to out-of-the-box DeFi earning strategies,
The user is no ordinary player but a massive whale who was able to obtain 2M BNB tokens through the official BNB Chain (BSC) bridge. While researcher Igor Igamberdiev notes that the attacker registered as a relayer for the bridge shortly before the exploit.
According to reports the BSC token hub bridge had a broken proof verification that lets hackers forge arbitrary messages and continue to request/mint assets which resulted in extra BNB
This hack is similar to the recent Ronin and Harmony Cross-Chain Horizon Bridge exploits and if you remove all the mumbo jumbo it boils down to a double spend.
Since the exploit, the user has already begun to try and muddy the waters but with value of this size, it's going to be tough. The user has tried since to bridge some of those assets to multiple other chains — there are $53M in assets on Ethereum and almost $49M on Fantom, according to reports from DeBank.
CZ exposed once again as a larper
As you can imagine, once a hack of this size goes down these so-called advocates for decentralisation are quick to throw that out the window. The first thing they would do is take the chain offline so that they could do the patchwork and stop anyone else from using the chain during that time.
This sounds more like a bank than a network, but hey what do I know right?
Naturally the ever smiling big head running the show, Binance CEO Changpeng Zhao ("CZ") tweeted that:
"An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC."
A BSC developer later confirmed that
"we coordinated with validators to temporarily suspend BSC after having determined an exploit on a cross-chain bridge, BSC Token Hub- which resulted in extra BNB".
The value of the $BNB token dropped from $293.10 to $280.40 after the news. How a hack of over 100 billion confirmed can only trip off 10% of the price is beyond me, I mean if this doesn't ruin your fiath in a network, you're clearly not paying attention and you're here to gamble.
BNB price chart - coingecko.com
It's really crazy how all is forgiven in shitcoin land and everything is chalked up to that's how it is, just the price of innovation. Hacks like these that create additional inflation due to bridge double spending not only hurts the network but all users who hold this token are effectively diluted by this new inflation that is going to get dumped sooner or later.
Now in shitcoin land people don't care about the economics only that the price goes up in dollar terms so they will hold on and continue to be diluted. I am sure Binance will recover from this and continue to rek retail with its host of products, as the sheep line up to let CZ take their money for total nonsense.
Sources:
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When you are in control of all the validators. You can halt the entire network and block the hacker's address, which is completely against the philosophy of decentralization.
Lol welcome to the conversation, look how many validators are on any POS chain, its tiny and decentralised theatre
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