CZ explains Binance's half-billion-dollar hack.
Bitcoin falls after the release of the job report.
And is Citigroup getting into crypto?
Stick around till the end of the video to find out.
My name is Frankie Candles.
And this is your nightly crypto news wrap-up.
Let's get it!
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What has to be done as an industry, we've just got to learn how to--
learn from this kind of mistakes and make our code more secure.
But software code is never bug-free.
But in the blockchain world, whenever there's a bug,
it could result in very large losses.
This is one of the case that happened.
But we were able to minimize quite a lot of the damage
to less than $100 million now.
There's a lot going on in crypto at the moment,
but the story of the day has got to be the Binance exploit
that went down late last night.
To be clear, the reason the price of BNB wasn't affected much by this hack
is because the hack wasn't against the Binance Chain.
It was against their cross-chain bridge the BSC Token Hub,
which is used to swap one crypto for another.
When Binance first learned about the exploit,
they immediately put out tweets assuring that the issue was contained,
they paused activity on BSC,
holders' funds are safe,
and that they would keep the community updated.
The question is,
how did this happen?
So the hacker used an exploit in the code
that forged security proofs into creating extra BNB tokens out of thin air,
and they tricked the BSC Token Hub into sending them 2 million of those BNB tokens,
which is worth about $566 million.
When the hacker tried to wash the money,
the validators halted the chain,
leaving around $429 million on the BNB Chain itself.
Using Venus, a lending protocol on the BNB Chain,
the hacker used the stolen BNB as collateral to borrow about $150 million in stablecoins.
$7 million of that froze before it could get transferred.
$6.5 million of that $7 million was frozen by Tether.
Anyway, once they got the stablecoins,
the money was spread around several other networks,
with $53 million of it sitting in this Ethereum wallet.
Overall, the cybercriminal made out with an estimated $110 million,
but it's still sitting in the networks it was sent to.
As for the BNB, it was frozen when the BSC was halted.
There will be a governance vote on if they should burn it or not.
BSC is now up and running again.
And The Block reports that they are holding a governance vote
for creating a bounty for catching hackers
where 10% of the recovered funds will be given as a reward.
There will be a bug bounty program
that will pay up to $1 million for each bug found on the BNB network.
I wonder how many hackers will reverse engineer hacks
and get paid to discover themselves.
Muahahaha!
Let's pass it over to Frankie Candles for a market watch.
Thanks, Frank!
Nice hat.
Alright, guys. Let's jump in and do a little market watch here.
We've got Bitcoin coming in at $19,568.
Down about 2% on the day
We've got Ethereum coming in at $1,333.
Down about 1.7% on the day
Now, I do want to bring you guys over to the Bitcoin chart
as we have taken a little bit of a tumble off of the job report that we got this morning.
And we are currently below our key level of support that we were talking about yesterday.
And that is the point of control coming in at $19,771.
This is the level that I am watching closely
because as we remain under this level,
it is showing that bears are in control
and that it could be possible that if we lose some of these other levels below us,
and it could be possible if we are not able to hold this local golden pocket,
that we will work our way back down towards the range lows at about $18,825.
And that is our Value Area Low.
As of right now, we are looking to print a green dot on the 4-hour chart,
and we do have money flow on these lower timeframes starting to move back to the upside,
so a short-term bounce could be possible.
However, with the daily red dot and the money flow crossover on the 4-hour
and as long as we remain underneath this point of control,
bears are in control, and we could expect lower prices.
If you guys want to follow me,
it's Frankie Candles on YouTube or @Frankie_Candles on all socials.
Back to the news.
Thanks, Candles!
It's funny how sometimes you can look at a chart and see the exact moment bad news came out.
Today, the bad news was the jobs report,
which comes out on the first Friday of every month.
As you can see in the charts,
the news caused Bitcoin to plummet as a direct result of the DXY pumping.
The job report itself showed that employment increased by 263,000 jobs
for the month of September,
which is the lowest monthly job report since December,
hence the negative price action.
Staying on top of these releases is very important as a trader,
and I have them all attached to alarms in my calendar
so I'm prepared for the expected volatility hours before it happens.
This includes Fed meetings, job reports, CPI data, things like that.
Trading this news can be a little bit sketchy sometimes,
but as long as you run a tight stop loss
and have a good idea of what direction the news will take you,
you should be pretty good.
Here's another pro tip.
Next Thursday, CPI data for September will be released at 8:30 AM.
So go ahead and set those alarms.
Banking Goliath Citigroup has been on the sidelines of crypto for quite some time.
As their institutional competition like JPMorgan, Goldman Sachs and Fidelity
have all been getting into the crypto game in one way or another,
Citigroup, not wanting to get left behind, finally joined the party.
They're not to the level of offering crypto to their clients or anything like that,
but they did help out in a seed funding round for a Hong Kong-based digital asset firm.
The firm known as xalts,
who wants to launch mutual funds and ETFs connected to digital assets,
received $6 million from the funding round.
Another backer of the funding round was Sandeep Nailwal,
who is also a co-founder for Polygon.
Citigroup's involvement isn't anything groundbreaking,
but to see them at least dip their toes in the water means a lot.
Love it or hate it,
crypto is oversaturated to the point where retail just can't move the charts like the good old days,
so the more institutional money that gets involved
is proportional to how ridiculously bullish the next bull run can be.
That's all I got.
Be blessed.
Frankie Candles out.