Balance Coin, an algorithmic stablecoin intended to maintain parity with the US dollar, has dropped more than 99 percent after an exploit on the Balance Protocol.

The token fell to approximately $0.001358 from near $0.9954. The incident involved manipulation of an abnormally low Bitcoin price feed from Binance, enabling unauthorized liquidations of collateral in multiple vaults.

Security firm SlowMist described the attack as a single-transaction sequence that exploited gaps in price protection and liquidation timing in the protocol’s Maker-style system. The attacker extracted assets and converted them for profit.

PeckShield estimated losses at $915,000 for 42DAO, the governance entity overseeing the protocol. Balance Coin is primarily backed by Bitcoin Cash.

The event contributes to ongoing challenges in decentralized finance, where smart contract vulnerabilities remain a target for attackers.