Blockchain security firms linked the collapse to a suspected attack on 42DAO, the decentralized organization that governs the Balance Protocol ecosystem.
Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has fallen more than 99% following a reported exploit.
The stablecoin, the native algorithmic stablecoin of Balance Protocol, is currently trading at $0.001358, down from $0.9954, according to CoinMarketCap.
Blockchain security firm PeckShield on Wednesday said the depeg followed a $915,000 exploit of decentralized autonomous organization 42DAO, which governs the Balance Protocol and its BLC token.
TenArmor said it had detected a suspicious attack involving GemJoin and 42DAO on the BNB Chain.
This is a developing story and more information will be added as it becomes available.
Subscribe to daily byte-sized crypto news from Cointelegraph
SubscribeCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
More on the subject
