Balance Coin depegged to $0.001358 following a reported $915K exploit targeting its governing DAO on BNB Chain.
Balance Coin, an algorithmic stablecoin pegged to the US dollar, collapsed over 99% after a suspected exploit drained $915K from 42DAO, its governing decentralized autonomous organization. The token fell from $0.9954 to $0.001358, according to market data.
The depeg followed reports of a security breach involving 42DAO and GemJoin on the BNB Chain. Blockchain security firms PeckShield and TenArmor detected the attack, which targeted the protocol’s governance structure. Balance Coin was designed to maintain parity with the dollar through algorithmic mechanisms.
No immediate market reaction details were provided, though the exploit highlights vulnerabilities in decentralized governance models for stablecoins.