Balance Coin Plunges Over 99% After $915,000 42DAO Exploit Triggers Depeg
AI Market Summary
Balance Coin's >99% collapse after an exploit on 42DAO signals a severe stablecoin depegging and governance/security failure within the Balance Protocol ecosystem. Reports of suspicious activity on BNB Chain (via GemJoin/42DAO) raise near-term counterparty and smart-contract risk perceptions for related on-chain venues, potentially tightening liquidity and elevating risk premia across BNB Chain DeFi until exploit scope and remediation are clarified.
Impact level
● High
Affected assets
BNB/USDT-0.89%
AI Insight · BNB/USDTAI Insight
▼ Bearish
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ME News reported that on July 22 (UTC+8), the algorithmic stablecoin Balance Coin collapsed from $0.9954 to $0.001358, wiping out more than 99% of its value. Balance Coin is the native algorithmic stablecoin of Balance Protocol and is designed to maintain a 1:1 peg with the U.S. dollar.
Blockchain security firm PeckShield said the depegging followed a $915,000 exploit targeting 42DAO, the decentralized autonomous organization that governs Balance Protocol and its BLC token. TenArmor also flagged a suspicious incident on BNB Chain involving GemJoin and 42DAO. (Source: ODAILY)
