Balance Coin Plunges 99% to $0.001209 on July 22 After Suspected Exploit on BNB Chain

According to PeckShield, Balance Coin (BLC), an algorithmic stablecoin designed to maintain a $1 peg, plunged 99% to an all-time low of $0.001209 on July 22 following a suspected exploit on BNB Chain involving unauthorized token minting, with estimated losses of approximately $915,000.

TenArmor identified two suspicious transactions linked to GemJoin and 42DAO, the organization associated with the Balance Protocol. On-chain analysis showed the first transaction minted approximately 4.5 million BLC tokens from a null address and transferred them to PancakeSwap V2 to exchange for BSC-USD and BTCB. A second attack approximately two hours later minted an additional 5.9 million BLC tokens. The unauthorized token creation flooded liquidity pools with new supply, creating severe selling pressure that drove BLC far below its intended $1 value.