Binance's Resilience After Past Hack and CZ's Empathetic Leadership
According to Flood, Binance experienced a significant hack in the past but managed to recover strongly, showcasing its resilience. This background suggests that Binance CEO Changpeng Zhao's (CZ) empathetic approach is genuine, as he emphasizes industry solidarity rather than being snarky.
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On February 21, 2025, a tweet from the user @ThinkingUSD on Twitter highlighted the historical hacking incident involving Binance and the subsequent recovery of the exchange, emphasizing the strength and resilience of the cryptocurrency industry (Twitter, 2025). The hack in question occurred on May 7, 2019, when Binance suffered a security breach that resulted in the theft of 7,000 BTC, valued at approximately $40 million at the time (Binance, 2019). Despite this significant setback, Binance managed to recover and even thrive, with its native token BNB showing remarkable resilience. Post-hack, BNB's price on May 8, 2019, was $15.30, and by February 21, 2025, it had risen to $580.75, a growth of approximately 3,700% (CoinMarketCap, 2025). This event underscores the potential for recovery and growth in the crypto market, even in the face of adversity.
The trading implications of the Binance hack recovery are significant for traders. Following the hack, the immediate reaction in the market was a sharp decline in BNB's price, dropping to a low of $13.75 on May 7, 2019, before recovering to $15.30 the next day (TradingView, 2019). This volatility provided a buying opportunity for traders who believed in Binance's resilience. The trading volume on Binance surged by 25% in the week following the hack, indicating increased interest and confidence in the platform (CoinGecko, 2019). Furthermore, the BNB/USDT trading pair saw a trading volume of 1.2 million BNB on May 8, 2019, up from an average of 800,000 BNB per day in the preceding week (Binance, 2019). This data suggests that traders saw the hack as a temporary setback rather than a long-term threat to Binance's stability.
Technical analysis of BNB post-hack reveals several key indicators that traders could have used to make informed decisions. On May 8, 2019, the Relative Strength Index (RSI) for BNB was at 35, indicating an oversold condition, which often signals a potential price rebound (TradingView, 2019). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on May 10, 2019, further supporting the notion of an impending price increase (TradingView, 2019). Additionally, the on-chain metrics for BNB during this period showed a significant increase in active addresses, rising from 50,000 to 75,000 within a week of the hack (Glassnode, 2019). This surge in active addresses suggests growing user engagement and confidence in BNB despite the security breach. By February 21, 2025, the number of active addresses had grown to 500,000, reflecting the sustained growth and adoption of BNB (Glassnode, 2025).
The trading implications of the Binance hack recovery are significant for traders. Following the hack, the immediate reaction in the market was a sharp decline in BNB's price, dropping to a low of $13.75 on May 7, 2019, before recovering to $15.30 the next day (TradingView, 2019). This volatility provided a buying opportunity for traders who believed in Binance's resilience. The trading volume on Binance surged by 25% in the week following the hack, indicating increased interest and confidence in the platform (CoinGecko, 2019). Furthermore, the BNB/USDT trading pair saw a trading volume of 1.2 million BNB on May 8, 2019, up from an average of 800,000 BNB per day in the preceding week (Binance, 2019). This data suggests that traders saw the hack as a temporary setback rather than a long-term threat to Binance's stability.
Technical analysis of BNB post-hack reveals several key indicators that traders could have used to make informed decisions. On May 8, 2019, the Relative Strength Index (RSI) for BNB was at 35, indicating an oversold condition, which often signals a potential price rebound (TradingView, 2019). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on May 10, 2019, further supporting the notion of an impending price increase (TradingView, 2019). Additionally, the on-chain metrics for BNB during this period showed a significant increase in active addresses, rising from 50,000 to 75,000 within a week of the hack (Glassnode, 2019). This surge in active addresses suggests growing user engagement and confidence in BNB despite the security breach. By February 21, 2025, the number of active addresses had grown to 500,000, reflecting the sustained growth and adoption of BNB (Glassnode, 2025).
Flood
@ThinkingUSD$HYPE MAXIMALIST