Algorithmic stablecoin Balance Coin lost its peg sharply on July 22 after a suspected security incident, falling from about $0.9954 to $0.001358, a drop of more than 99%. Blockchain security firm PeckShield said the depeg was tied to an attack that cost roughly $915,000 at 42DAO, the decentralized autonomous organization tied to governance of the Balance Protocol ecosystem and its BLC token. Separately, security firm TenArmor said it had detected suspicious attack activity on BNB Chain involving GemJoin and 42DAO. As of now, the project team has not released a detailed explanation of the incident or outlined any follow-up response. The event adds another case of an algorithmic stablecoin breaking its peg after a security issue, though the precise cause has not yet been disclosed by the project.
Algorithmic stablecoin Balance Coin suffered a sharp depeg on July 22 following a suspected security incident, with its price falling from about $0.9954 to $0.001358, a decline of more than 99%.
Blockchain security firm PeckShield said the depeg was linked to an attack worth about $915,000 against 42DAO, the decentralized autonomous organization that governs the Balance Protocol ecosystem and its BLC token.
Another security firm, TenArmor, said it had detected suspicious attack activity on BNB Chain involving GemJoin and 42DAO.
The project team has not yet disclosed the detailed cause of the incident or any follow-up handling plan.
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