$915K Exploit Sends Balance Coin Plummeting 99% in Value

$915K Exploit Sends Balance Coin Plummeting 99% in Value

Security experts in the blockchain space have connected the dramatic price drop to what appears to be a cyberattack targeting 42DAO, the autonomous decentralized entity responsible for overseeing the Balance Protocol network.

An algorithmic stablecoin known as Balance Coin, which was engineered to preserve a fixed value against the US dollar, has experienced a precipitous decline exceeding 99% in the wake of what has been identified as a security exploit.

The digital asset, which serves as the primary algorithmic stablecoin within the Balance Protocol network, is presently valued at $0.001358, representing a dramatic fall from its previous price of $0.9954, based on data from CoinMarketCap.

On Wednesday, blockchain security company PeckShield reported that the loss of the dollar peg occurred after a $915,000 exploit targeting the decentralized autonomous organization known as 42DAO, the governing body responsible for overseeing the Balance Protocol along with its associated BLC token.

Meanwhile, TenArmor reported that its systems had identified what appeared to be a malicious attack that involved both GemJoin and 42DAO operating on the BNB Chain network.

This is a developing story and more information will be added as it becomes available.