Balance Coin’s algorithmic stablecoin collapses by 99%, and 42DAO suffers a $915k hacking attack

Blockchain security company PeckShield said on July 22 that the decentralized autonomous organization (DAO) 42DAO, which manages the Balance Protocol and the Balance Coin (BLC) token, suffered an exploit worth about $915k. The attack caused BLC to depeg, with the price collapsing to $0.001358—a drop of more than 99%.

BNB Chain GemJoin vulnerability: 42DAO loses $915,000

According to reports from PeckShield and TenArmor, the main known information about this incident is as follows:

Loss amount: about $915,000 (PeckShield data)

Attack chain: BNB Chain (TenArmor data)

Involved contracts: GemJoin (TenArmor labeled it as the contract involved in the suspected attack)

Attack target: 42DAO (a decentralized autonomous organization that manages the Balance Protocol and the BLC token)

Nature of the incident: PeckShield directly links the Balance Coin depeg with a suspected attack targeting 42DAO

Balance Coin crash data

According to CoinMarketCap data, Balance Coin’s (BLC) price performance after the attack is as follows: the prior price was $0.9954 (close to the USD peg target). After the attack, it fell to $0.001358, down more than 99%, and the peg mechanism completely failed.

Balance Coin is an algorithmic stablecoin designed to maintain a peg to the US dollar. This depeg indicates that its stability mechanism failed following the attack.

FAQ

How much was lost in the attack suffered by 42DAO, and on which chain did the attack occur?

According to PeckShield’s July 22, 2026 report, 42DAO suffered an attack loss of about $915,000; TenArmor confirmed that the attack occurred on BNB Chain and involved the GemJoin contract.

What is the current price after the Balance Coin crash, and how large was the drop?

According to CoinMarketCap data, Balance Coin fell from $0.9954 to $0.001358, down more than 99%, after completely losing its USD peg.

What is the relationship between Balance Coin and 42DAO?

Balance Coin (BLC) is Balance Protocol’s native algorithmic stablecoin, while 42DAO is a decentralized autonomous organization that manages the Balance Protocol and its BLC token ecosystem. This attack targeted 42DAO and directly caused BLC to depeg.