Balance Coin (BLC) Plummets 99% Following 42DAO Exploit
DeFi protocol 42DAO's security breach triggers catastrophic crash for Balance Coin.
1Historic Collapse of Balance Coin
Balance Coin (BLC) lost over 99% of its value after DeFi protocol 42DAO suffered an exploit worth approximately $915,000. The token plummeted from nearly $1 to fractions of a cent, marking one of 2026's most dramatic crypto crashes.
2Oracle Manipulation Triggers Crisis
Blockchain security firm PeckShield identified manipulation in 42DAO's Median Oracle. The system accepted an abnormally low BTCB price, initiating liquidation. Vulnerabilities in the Spotter poke function facilitated the attacker's exploit.
3Mass Liquidations in Single Transaction
The manipulated price entered the protocol's accounting system and was processed without verification by the Dog module. This allowed the attacker to instantly liquidate multiple BTCB vaults in one transaction, as documented by SlowMist.
4Market Reaction Turns Violent
BLC's price dropped from $0.997 to $0.0025, a 99.75% loss in 24 hours. The token's market cap collapsed to $12,000 with trading volume at $94,900. Over 1,600 transactions occurred, with buys slightly outnumbering sells.
5Mounting Security Issues in DeFi
The 42DAO incident follows a series of DeFi exploits in 2026, including Allbridge's $1.65M theft in July and Syscoin's bridge exploit minting 5B SYS tokens in June. Inadequate security measures continue to enable such attacks.
6Wake-Up Call for Crypto Security
The 42DAO case underscores critical vulnerabilities in price feed mechanisms and liquidation processes. Protocols must now prioritize strengthening oracle validation and implementing delay mechanisms to prevent similar catastrophes.
Original article: CryptoPotato — Balance Coin (BLC) %99 Çöküş Yaşadı: 42DAO Güvenlik İhlali Kurbanı