Balance Coin Crashes More Than 99% After 42DAO Hit by $915,000 Exploit
AI Market Summary
Balance Coin's >99% depeg after an exploit against 42DAO undermines confidence in algorithmic stablecoin designs and highlights governance and smart-contract risk. Reports tie the incident to suspicious activity on BNB Chain, potentially elevating near-term risk premia for BNB-chain DeFi and increasing scrutiny on associated protocols and liquidity venues. Broader crypto sentiment may weaken as stablecoin reliability is questioned.
Impact level
● Medium
Affected assets
BNB/USDT-0.90%
AI Insight · BNB/USDTAI Insight
▼ Bearish
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Balance Coin, an algorithmic stablecoin under the Balance Protocol designed to track the U.S. dollar, plunged from $0.9954 to $0.001358, wiping out more than 99% of its value, according to Odaily Planet Daily.
PeckShield said the token's loss of its peg followed an exploit at 42DAO, the decentralized autonomous organization that oversees Balance Protocol and its BLC token. The attack reportedly resulted in losses of $915,000.
TenArmor also flagged suspicious activity on BNB Chain, saying it detected an apparent attack involving GemJoin and 42DAO.
