The .3 billion hack at Binance may dent confidence in crypto markets temporarily, but could also prompt exchanges to strengthen their security practices, according to Grayscale research head Zach Pandl.
In a Tuesday report, Pandl pointed to institutional custody as one way to protect crypto assets. He said crypto exchange-traded products hold assets with state-chartered banks and qualified custodians, and typically use offline storage, multi-signature wallets, SOC attestations and insurance.
Binance said it would cover all customer losses after the record hack on Thursday. The FBI attributed the attack to North Korea, while Kim Yo Jong, the sister of North Korean leader Kim Jong Un, rejected the allegation as “absurd rhetoric.”
The attack was followed by a market sell-off. Bitcoin fell below $77,000, while BNB dropped more than 8% over 24 hours by early Friday. By Wednesday, the total crypto market capitalization had risen 2% over the previous 24 hours to about $2.63 trillion, after reaching a weekly low near $2.55 trillion earlier that day. The market remained about $100 billion below its Oct. 28 level.
Bitwise head of research André Dragosch told Cointelegraph that recent outflows from US spot Bitcoin exchange-traded funds reflected a short-term risk-off environment rather than a structural shift in institutional sentiment.
Sources: Cointelegraph.