Bitcoin Forum

https://binance.zendesk.com/hc/en-us/articles/360028031711-Binance-Security-Breach-Update

Now that the once unthinkable has actually happened, Binance has been hacked to the tune of 7000 BTC (estimated $41 million in currency today), how will this affect the brand name that came from nowhere to become the market leader?

Will another name, maybe an existing reputable exchange top spot or maybe a start-up will? Maybe Binance will not be affected by the negative press.

What do you think the future holds for Binance?

Even with the hacked case and the daily trade volume on the binance exchange is still stable. I believe there are only a few candidates for that Okex, and digifinex maybe but at this time the brazillian bitcoin exchange site has taken the first spot of the exchange site with the largest daily trade volume. A big business will always create domination or monopoly and i will remove a new start-up to take a chance on this case. Im still holding my binance right now.  8) it looks so bright.  8)

It seems that not much will happen in the short term. I think it pretty much depends on how they handle the case now. They should make all errors that were made as transparent as possible to regain the trust.
On the other hand they just opened their new DEX. While it is not a true DEX in terms of decentralization, user do own their own private keys which should prevent such grave security breaches in the future.

No exchange is impervious to hacks. CZ has tweeted that Binance will make good the loss by using their reserve funds so it should work out fine. 

I don't see any competitors for Binance. Can you write some exchange with 100% 'hack' defense and such support from different sides? And I don't talk about SAFU and other sources for returns. I don't think that we saw real 'hack' but at the current conditions Binance don't have replacement

i don't understand because if it's not wrong, in the past binance has also been hacked, then binance got back up carrying a BNB token, is it possible for me to misread that?

this time it happened again and that's the reason i didn't use binance so far, with this incident of course it will have a bad impact on the crypto market. this event seems that binance will indeed lead a new market with sharp decline and chaos

Yes it is true Binance still looks to be a great investment but for many investor confidence has now been shattered.

Of those few candidates that are out there that could take the top spot from Binance, they need to step up their game to show they are better and more secure.

I have seen how new projects for Exchanges have come out, but to match the level that Binance has is very difficult, even though they have managed to Hack the Exchange for so much money, I'm sure Binance will have a way of how they can recover, and everything to improve, because it is necessary to emphasize that they have a big security problem.

The closest Exchanges which can compete with Binance are Bittrex, Bitfinex, Bitmex, because they are Exchanges that have had time and have a reputation. Due to all the problems the Exchanges have had, thanks to the Hacking that happened there, all the Exchanges must have plans of action before possible Hacks, the security in the Exchanges must be increased quickly, but as happened to Binance, It can happen to any Exchange level 1, no Exchange is free of danger, you just have to take care of yourself. But there are many competitors.

If it gets hacked just one more time then maybe those same people will not be bothered using Binance again. An exchange is only good if people use it, so far Binance does not seem to be affected but in future we will see.

I think their reputation will on edge if they get hacked again. Even they said user's balance is not affected, but people will choose more trustable site for them to trade. Or maybe Binance will make new promotion again to attract users back to trade in them.

Will they announce in detail what the hack was? I doubt it. They will lose trust of investors and customers if they do not elaborate on how the hack took place.

They said they need around 7 days before customers can withdraw and deposit but we will see what happens.

As you said an unthinkable actually happened, so it's too early to comment for a new name to take the position.
Yes, it happened and it was totally unfortunate but we should give some time to CZ to sort things out and do whatever it's necessary to solve the issue.

Most of the big exchanges got hacked at some point IIRC and Binance is not an exception here IMO. Just give some time to CZ to see what he does...

There's always time for rise and fall and becoming at the top won't last forever. I had that on my mind that there will be another market leader but it is so soon to think about that. But now, with this incident probably some big traders would actually shift to another aspiring market leader in terms of exchange.

What would that be? I don't know but I have a candidate on my mind. With the situation now, let's all wait and see on how Binance will clean this mess and what will be the reaction of those affected ones.

I was  sad when I read this news, What happened to the binance is a black point in the history of the binance platform, I see that all sites are vulnerable to hacking when its protection is not strong, 7000 BTC is a significant amount was a tough lesson for a big platform like the binance platform, Binance should address the causes of hacking and strengthen security screening of the platform, They must compensate people who have been stolen on their platform, Because this is the fault of the platform in that because it's could not block this withdrawal in time, I think that the future of binance will be very difficult if they continue this poor protection and certainly there will be another market leader, But if they review the mistakes and correct them and returned again with an integrated security system, i think hackers will have no place in this platform.

That hack was not the fault of Binance, it is more of a human error that's why they got hacked.

This kind of news won't make Bitcoin price go down since it wasn't a direct attack to the said exchange unlike to other exchanges.

And always remember that there is no perfect system here no matter what human do, there is always a human error on it if it fails.

Most customers don't care because their funds aren't affected.  People will continue to use Binance like nothing ever happened.

I don't believe CZ will pull an exit scam, he is already a billionaire what else could he possibly want.  Ultimately 7k bitcoin isn't much for a company that is capable of making billions per year.

Kinda tough question ???
After the recent news, Binance already lost more than 7000 BTC and they should think hard about re-branding to decentralised exchange in order to get bakc the confidence of crypto traders.

Only if there’s an exchange who can really beat binance on top, and we can’t control this one since traders will have to choose on what exchange to be use. I still prefer binance and the hack is normal on every exchanges, i believe they don’t want this to happen that’s why they will shoulder that money, investors will decide for the new market leader.

They had no choice but to cover losses otherwise what was the alternative?

In the long term Binance will recover from this incident and as long as another hack does not occur things should continue calmly for Binance and its innovations.

The problem of the great dominance that Binance is exerting on the current market, is that these vulnerabilities can destabilize in an important way the cryptoeconomy since everything seems to indicate that nobody is safe in this space, and it is difficult to decide to invest before such an uncertain panorama.

At the moment I do not see, however, who can dispute that domain to Binance, although as a Decoin investor I would like to see that new exchange demonstrate all the potential it has through a more aggressive marketing strategy.

Unthinkable? Did people actually think Binance was never going to get hacked? Every single cryptocurrency exchange is vulnerable to getting hacked, the only reason why there are some that haven't been hacked is because they aren't a target, but sooner or later they will become the next target, that's why people should own their privates keys and not keep their coins in exchanges.

Nothing's gonna happen to Binance. This is simply a small bump in the road for them, give it a few days maybe weeks and everyone will forget about it.

yes, this is just another way for corrections, but i see this bad news didn't have a significant impact on cryptocurrencies price,,
and now bitcoin price already move up and cross $6000, also i believe binance users will stay with binance  ;)

Despite of the hacked incident in Binance and the suspension of deposits and withdrawal on the exchange, Binance is still the top one in volume. And traders keep on trading on this exchange that looks like nothing happens. Binance is still reigning the market, we cannot change that fact but if two or more hacking incident will hit Binance again, traders will find another exchange.

If in your opinion this was not a "real" hack then what was it?

Losing 7000 BTC is a big issue so please explain what this attack was in your opinion.

Still cannot believe in this fairy hack. What if it is just the anti-PR. Binance is really serious entity with real volumes. OKEX has made the proposal to Binance users to transfer the assets with bonuses. Have something to think about.

I am sure that this situation can be used by many competitors of Binance as a chance to take some of the market share of the leader but how they gonna do that remains to be seen. Will they say that they have the stronger security technology that Binance is using? Or will they boast of a fund that can cover any loss due to hacking? Not unless they can convince the public that they can offer better, then I think Binance will continue its dominance most especially if people of Binance will get their acts together in assuring the users that things will gonna be fine and that they will do everything they can to ensure the same breach will never happen again. Actually, this is the real time for Binance competitors to inspect their security fences as all exchanges can be the target of hacking anytime.

I never heard of that before. Please confirm details about when Binance was hacked in the past. How many times in total has Binance been hacked?

Do you think Binance is not safe? No it is the most targeted one, if you use and hold coins in many other exchanges, you should try to withdraw your coins before complaining about Binance.

Everyone should be discussing how to create better decentralized exchanges and not creating  many more centralized exchanges that may eventually get hacked. I guess we haven't learned anything yet

So in the long term what do you see Binance doing? And what do you see Binance competitors doing to capital on this issue by attracting Binance customers?

To me Binance will still be considered a market leader, it isn't going to just die down because of 7000BTC, it doesn't even affect the market. Tracking who hacked and jailed them may really be a good marketing for the exchange in the end.

They were the first to convince more exchanges not to support BSV, I don't think its enough for CW to be laughing now. Binance did more damage to them.

There is nothing to really worry about here, they only lost some few coins that they will surely cover up but they have never lost their strategy, hyping is not what is building Binance reputation but their good products, hard work and strategy.

It’s just a onetime mistake that would never occur again, and the love people have for Binance is too much for people to start belittling them, after all I have my coin in their exchange, and despite all the news which they have come to clarify, I still feel confident keeping some of my coins on their exchange, although I have majority of the long term holding in a personal wallet, but my trading coin is still in their wallet.

I have to agree with this. If they get hacked again both Binance and their customers will be on edge.

I just find it hard to trust any exchange anyway but if it has been hacked it really makes it difficult to use them again.

I think that Binance will be fine and will remain a very important exchange. Yes this has certainly been bad publicity, but they have responded reasonably well. I would expect the coin and the exchange to recover in the not-too-distant future.

Honestly? For me this event only brings more popularization and also become an advertising for binance

Look at the effect in the market?the price of bitcoin grows higher after the hack and we are seeing some investors that has not affected of the hacks and continues their holdings and tradings in this top exchange

So basically? Binance will remain high rank exchange

Yes, I agree with you. I don't think that will give an effect to traders or an investor because of the hacking news. Binance still operates after the hacking and it still stable right now. Binance itself still confident that there is no need to worry from that news and everything is under control. I believe binance will be fine and still going strong than the other exchange and I am sure that they will not disappoint their members.

I don't think that there is a time for choosing the new market leader after the hacking that happened in binance because of binance still the top exchange. But perhaps, there is news that still wants to spread bad news because of the hacked because they want to make people panic and sell at a low price.

You have an interesting valid point too.

Binance should be given time to sort this mess out but what can other exchanges do to try to take market share from them because of the hack?

Should users be concerned that not all the facts have been released therefore it is possible they are hiding something?

If they ever lose the second chance investors are giving them again, then that might really be the end of the hype, which they really need to brace up for, because they have too many enemies that will do everything possible to bring them down as they are threat to a lot of them.

I trust them though and I believe they would have learnt from their lesson, probably they allowed the whole hype thing on the media about them to get into them that they forgot there was a need to thoroughly lose every lop holes that their attacker might use against them, well, I am glad my coins are still intact in my wallet and I believe it will even be more safer now.

If you believe your coins are more safer since the hack then I applaud your stance and hope you are right.

I completely agree with you when you say that Binance must have many enemies and competitors as well as those targeting it trying to steal funds.

I don't see any forthcoming. Do you know why? It's because Binance has raised the bar so high. From its large community to its seamless operation and liquidity. Even Okex and Coinbase can attest that Binance is currently operating in a league of its own and its qualities unmatched

binance will not affected by this issue my friend
but another exchange platform will got more attentions from crypto traders after this hacked issue,
and maybe bittrex and bibox will move higher because of this  ;)

If Okex and Coinbase are in the best position to capitalise on any bad news from Binance but they cannot make up ground, what can any new competitor do to take on Binance if existing exchanges cannot make a full challenge.

The hack incident is affected the price of binance coin for sure, that's why the price of binance coin was fall down a few days ago but it's not anymore.

The increase of crypto market is also one of important thing, makes binance coin strong again. In my opinion Binance is still the biggest exchange even with the hack incident, binance name still fine.

 This is just a minor serbsck of which Binance will surely overcome. For the fact that daily trade volume has not dropped is an indication that no exchange can take their place anytime soon

Maybe they will move higher but another thing to note is that maybe other exchanges will have to review their own security too. The first thing to understand is why and how the hack occurred.

When Binance will open up and explain to everybody what happened then things will be easier to understand.

lets not forget that Binance (like its predecessors) has gained its popularity and high volume the same exact way that OP is asking. there were other exchanges before Binacne which were at rank one and had the highest volume. then they started having problems and Binance swooped in and replaced them. in fact every couple of years we see a replacement like this. if i recall correctly this is the list of exchanges that replaced each other as number one in the past 5 years:
Cryptsy ---replacedby--> Poloniex ---replacedby--> Bittrex ---replacedby--> Binance ---replacedby--> ???

i think binance will be the top choice of majority, even there is a recent hack on the exchange.. still dominating the market as the top exchange

With the brand name "Binance" surely it is still on to a big thing. Even if the 7000 BTC hack did not affect investor confidence, how can you be sure a second hack will also result in investor confidence?

Every financial institution has its own level of security implemented to secure their users for sure.
But yet hackers find a way in, there could be two reasons for this (1) hackers are introducing new tactics every time (2) insider job.

It makes sense for me, that when a hack happens even after the tight security that already existed, the exchanges will make their security more tight to prevent future hack attempts through new tactics. I will not comment on "insider job" thing as it is not related to security. It's just a case that someone inside the company is cheating the owner maybe and it requires a lawsuit against that insider and it will be easy to recover the hacked funds.

As long as users funds are not harmed, users should not be worried. Binance is the current top altcoin exchange and it's established, so I think Binance will do everything it needs to protect user funds. Just my low brainer opinion.  :)

I think people will think twice about leaving their funds on binance. Many were probably using it as a safe wallet, but as funds are no longer safu they will probably dump their BNB tokens and switch to another exchange

since the emergence of binance continues to grow and become one of the biggest exchanges and is in great demand by traders and now is the beginning of this exchange hacked and I hope this makes them improve the security sector and become stronger because of course we want binance not as cyptopia repeatedly HACKS and makes this exchange not good anymore

It is interesting their daily rate has not fallen but would it survive another round of negative press if there was another hack?

Possibly one more hack will surely make them go low, but in the present scenario they have come up with their own reserve to keep the users without getting affected of loss. This could've never been possible with other leading exchanges. Anymore they'll make further developments to keep the security systems more effective with advanced security tools.

Last week hacking at binance, in my opinion did not have a big effect on their exchange. He said the amount was only 2% of the amount they held. Binance himself confirmed that other funds were safe and stored in cold storage.
https://twitter.com/cz_binance/status/1053562586749227008

So there is nothing to fear now and binance will continue to grow, this is only a small matter for binaries and will not have a big effect. Binance users also feel relaxed because binance professionals are handling this.

The question Op needs to ask himself is what impact will having a new leader make in this cryptocurrency, even if anther exchange top Binance now which I absolutely doubt, there is no assurance that they will not be scammed too because these scammers are no respecter of men or exchanges.

Binance hired top security experts that no exchange will be able to afford to pay them, and these experts are among the people know to be the best in their field but yet, hackers still defeated them, so this new leader op clamored for, how do they intend to handle hackers more than what Binance is doing?

An excellent post. One of the first in this thread mentioning cycles with periodic changes that allow a rotating "top" exchange.

You rightly said, once upon a time it was Cryptsy, MtGox followed by a long chain of other exchanges which led to Binance. The chain does not stop there, it is continuous so the top spot will continue changing hands.

Maybe within the next year or so another "new" exchange will come along offering something unseen and innovative, which will see Binance losing the top spot.

Many users of cryptocurrency express their opinion that the hacker attack on binance was nothing more than a fake hacking.  And it will be very unpleasant, if indeed it turns out that the binance trading market will be found to be a fraud.

Many have attempted in the past, but Binance remain the top dawg despite the recent hacked. So I don't think that there will be a new challenge coming in the next years or so.

They have established themselves and having CZ as CEO has something to do with it. How many exchanges right now do we have that we know as active as CZ in twitter? None. So him as the head of Binance is also solid and has built a solid reputation already.

I suspect many users must have already started signing up for other exchanges just to see what their set-up is like and to keep as back up in the event Binance gets hacked again.

it also makes sense, if we look at the old adage that the wheel is always spinning, sometimes it is above but there is a possibility that it will also be at the bottom, maybe that also applies to the current favorite market which tends to be replaced with another.

When the binance opens the shooting process, the market is going to happen. This may be the largest of recent manipulations. I really wish it wasn't that annoying.

Thank you for your views but can you explain what makes you hold those views. Is it because of customer service or ease of use or something else?

Well, if the higher ranks on Binance team suggested that thing. Why not reconsider the idea? New market leader means new strategies on how they will manage the security if a particular exchange and also new SOP. I guess, there is a huge positive impact if ever they will gonna replace the current leader of their company.

Apparently since the hacking that was given to Binance, the market started to rise, maybe the Hacker is selling cheap to the Strong Hands or in the market in general because they were more than 7k of bitcoins, and when selling the volume may be has increased, and all this increase in the price of bitcoin is because they are in staggered sales produced by the sale of the same bitcoin.

If so, there are many possibilities that the market reaches a bit faster to the period of bullish trend, of course, it is a theory that I have, what happens is that it is very strange that since Binance hacked the price of bitcoin has increased It's like a positive effect.

There is also the possibility that every time the bitcoins disappear the market moves faster and is much more concentrated, because its value increases, maybe because it is a currency with a limited supply.

In fact you have to wait or see how many bitcoins have been bought lately to see if the sales are equivalent to the number of bitcoins that were stolen from binanance, everything is in the possibilities.

Is going to take start-up a huge amount of time and dedications to start any dominance now in the cryptocurrency space There are already tons of better exchanges out there and is no doubt that the Event at Binance is not going to affect their exchange that much since users are compensated already and more security actions will be put in place for sure

If you talk about security issues, there really isn't anything that is 100% safe. but in my opinion Binance is the fastest coin service so that it ranks top of the coin business. Why? because they charge a very small and cheap fee of only 0.1% and their services are very fast and reliable. Their coins were also liked by traders. So I Think Binance will not be affected by the negative press.

So if Binance announce the real reasons how the hack happened and tighten security, would that mean you would feel confident in continuing trading there?

The number of withdrawals immediately after Binance re-opens for full business will be a good indicator of what the future holds for Binance.

Nope it's impossible that the team behind will approve that suggestion. because the hack issue is not meant to happen wherein just a coincidence because of human errors,  and now for sure they're keep improving their security to convince users to get back their trust instead searching for new leader because in fact like what they said it's just a human error and they can fix it as soon as possible to prevent another scenario.

Binance is no longer unbreakable and it is time for more equality at the top. The dominance of ine exchange is unhealthy, switch to kraken which is the safest exchange according to reports

See even we have faced many issues with the exchange past but many people trading in those exchanges, Once they start activating the withdrawals and deposits why are you considering it for only withdrawal. Already they mentioned we are going to return the funds to the investors who lost through the #SAFU.

That is probably what most people will think but how many will actually take their funds out of Binance after withdrawals and deposits are resumed?

Hacked news about Binance did not affect the market and not effect to the platform too.  Binance still be the best crypto exchange platform.

I'm still trading in Binance even after the hack, I didn't really stop trading there... It is because I like Binance as it is one of the top altcoin exchange and I don't have a better option. It's like a personal choice.

Binance said they will compensate those who lost due to the hack with their SAFU funds...
I had read somewhere that it is only 2% of SAFU funds needed to compensate. So you can see Binance has a strong backup system for traders and also have the intention to compensate.
I just hope Binance will make their security system stronger from strong and best from better. And users also need to do their part in order to secure their accounts.

Those who lost trust and those who fear will definitely leave Binance, and there is nothing Binance can do.

Surprisingly the hack did not affect the median price of Binance.

I still think that too much power in the hands of one individual is not a good idea,

binance is very strong in the matter of a stable price field and in my opinion binance is very good in choosing tokens that do not harm investors, yesterday the binance has been hacked in my opinion this is not detrimental to the person who is trading on the exchange and still smooth. because all the exchanges can be hacked at any time by people who are not responsible

Seems they have understood that if they get hacked again they will lose many users so they must be focusing on security.

Binance is holding too many coins from people that do not want to download and sync blockchains for every coin they have. That is the biggest reason people target exchanges.

Ye, it's a big mistake. But Binance is full of such traders that don't want to hold in the cold storage because it's impossible. I'm afraid MtGox recurrence only. Holdings 'as is' not bad. But with too much pseudo traders it can become dangerous

The world of MTGox was very different than it is now. I dont think something similar would happen with binance as everything has matured since then. There will always be risks, but something of the likes of MRGox wont happen again.

Yes the days of MtGox are gone but when other exchanges go the same way such as Cryptopia and others then people rightly still worry.

Maybe Binance will not go that way but the hack exposes flaws in Binance and serves a reminder to us all that crypto on any exchange will never be fully safe and secure.

I hope other exchanges step up and show others t hat they can compete with Binance and not allow Binance to dominate so easily.

All exchange has flaws none can be regarded as 100%, binance is not an exception of those flaws but at least they know how to serve their customer better, probably playing the game much better than the rest, before it was polo, kraken, bittrex..... but not any more, the market is open for competition any exchange that thinks they have what it takes to be at the top should bring it. 

thats the excess from binance,
binance always give their customers the best service
and thats make binance always become the top marketplace in this industry my friend

Actually, Binance was not effected at all, because they have followed a great strategy. From the very beginning, they said, yes we were hacked, but no worries, we will improve ourselves, all funds are being restored and we are going back to normal schedule. Users were pretty pleased to hear that and as far as I know there was no big negative hype wave against Binance or something like that.

You remind me of Polo, an exchange that used to have the largest volume in the middle of 2017. But I see they don't take that opportunity to grow more, and Bittrex is same.

Well, Binance still account for most of the trading volume especially altcoins
They are doing kinda great, aside from exchanges, they also provide academy which is in fact a really great section
Then now they have margin trading, soon we will have margin lending in my opinion

They are doing this one stop crypto solution as their goal i guess

and now traders' growth and trust are turning to binance. it is not impossible that there will be exchanges that become competitors even better with better features and make traders comfortable there.

Agree,they do retain their reputation not just like on what happened to Polo and Bittrex where they dropped their rankings after facing some issues.
Binance do somehow able to divert that negative impression or views after the hack by that SAFU solution.Nothing been affected when it comes to users funds
which I do believe the best thing that they have done into those situation and now we are seeing they are still on the top.

when binance is still making updates from the platform to make it comfortable from the traders there it will be good. can be a way to maintain the community. indeed, the exchange should be like that, many events and updates, it makes the exchange last.

you cannot judge a person in only one mistake.. CZ did an amazing job for his exchange.. binance and bnb is still stable even there is a hacking incident.. user's are growing as well

Practice shows that not one cryptocurrency can not linger in its price at the same level for a long time.  Of course, if this does not apply to a stable coin, although BNB is not.  I think that today we should be more attentive to Binance, because certain reasons may lead to lower prices for BNB.

Do you believe this hacking thing is really happened? I really not sure and accept that hacking has been done by some other people. If such hacking incident happened and Binance lost big funds meansthey will never go for creating their Dex exchange after it.

We need to understand Binancs is one of the centralised cryptocurrency which is more volatile than the other top cryptocurrencies in the market list

After a long period formed in the market under the ingenious leadership of CZ, Binance became the largest Exchange in the cryptocurrency market. This is really huge success that Binance has done. I think the development of Binance will not stop here and in the future what can happen, BNB coin is a very good investment option.

Do you think Binance will be the top exchange after 12-18 months?

Binance is now exchanged with very large volumes. So the exchange becomes a role model to compare the price increase of the coin from another exchange. The future of Binance is very good and if the price of Bitcoin being able to climb will certainly give a positive impact. And will make Binance coin price continue to grow.

Before you think the unthinkable, first thing you need to ask is why Binance would really broadcast what does not happen when they know that it could really work against them real hard. No matter how strong they think they are, that event that occurred is still a stigma that will stick with them for the rest of their life, look at how people has already listed them as exchanges that has once been hacked and cannot be trusted for security reasons.

So, please tell me, on what ground would they come up with such issue without it happening. If they are creating a DEX exchange, is it still not one of the reason of security that made them do so, because we all know that DEX is still the most secured exchange and the best. So the hacking really happened and thank God it was quickly curtailed.