Balance Coin Suffers Catastrophic 99% Loss Amid Suspected Exploit

The crypto market has suffered another blow as Balance Coin plummeted more than 99% in value following a suspected exploit on BNB Chain. The stablecoin, designed to maintain a $1 peg, fell from nearly its intended value to an all-time low of $0.001209 on July 22.

Blockchain security firm PeckShield estimated that approximately $915,000 was lost during the suspected attack. TenArmor reported detecting two suspicious transactions connected to GemJoin and 42DAO, which is associated with the Balance Protocol ecosystem.

The unauthorized minting of new BLC tokens greatly increased their availability for sale, pushing the stablecoin far below its intended value. The incident highlights the ongoing risk of unauthorized token creation in the crypto market.