BNB CHAIN HACKED

Last week, we were seeing some green in the crypto market until we hear about the two macro economies new that end up affecting the crypto market. One of the news that affects the market is Opec's decision cut oil production by 2 million barrels per day. Of course, this shortened supply will increase inflation around the world, and when inflation increase, the federal reserve will be forced to continue raising interest rate to deal with inflation. Raising interest will affect many things and assets will continue to crash because many people will convert their assets into cash.

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Even if people continue to convert their assets into cash, a lot of the cash will be going into the government because of the high-interest rates. The September unemployment statistics for the US is another major factor that move the crypto market last week because the unemployment rate fall to 3.5%. Although the U.S unemployment rate fall to 3.5%, it still did not meet the FED target and that means the FED will continue to raise the increase rate. When the unemployment rate falls to 3.5%, the crypto market still drops and this is because investor always likes to price in what will happen over the next 6 months.

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Regulations are one major factor that has been hanging on the crypto market, one organization is set to draft regulatory suggestions for crypto this week. We don't know the specific date these recommendations will be out, but these recommendations will be rules that countries must follow. Regarding crypto regulation, some of the concerns have to do with on-chain censorship. On-chain censorship has to do with validators enforcing the laws of their countries on the blockchain they are securing.

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Ethereum start censoring sanctioned transactions, that is the transactions performed on tornado cash. Right now, about 45 percent of the Ethereum validator are censoring tornado cash transactions and any Ethereum validator leveraging flash boats has been censoring tornado cash-related transactions even they might not know. I will not be surprised if this on-chain censorship leads to enforcing KYC on Ethereum wallets.

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A few days ago, the BNB chain was hacked and stole 600 million dollars but the hack was able to get away with about 100 dollars BNB. What the hacker did worse was take advantage of a bug in the bridge between the beacon chain and Binance Smart chain to create 2 million BNB out of nowhere. Thereafter, the hack uses the stolen BNB to borrow different stablecoins out of decentralized finance protocol. Then they sent these different stablecoins to other cross-chain bridges and convert them to other cryptocurrencies. The BNB was forced to shut down for them to think of the next step to take and was very easy to shut down because the BNB chain only has 25 validators. Although no one knows who the hackers were, some people believe it is North Korea because they had done something similar in the past.