Bearish
🤖 100%
Balance Stablecoin Nosedives 99% as $1M Exploit Drains Bitcoin Vaults
Balance stablecoin collapsed 99% after an attacker fed a fake low bitcoin price to its lending system, triggering unwarranted liquidations and draining $1 million in bitcoin. The stablecoin lost its peg almost entirely.
Catalysts
- ▼ Attacker manipulated bitcoin price feed
- ▼ Liquidation of safe vaults
▼ Show FAQ (2) ▲ Hide FAQ
Why did the Balance stablecoin lose 99% of its value?
The stablecoin was backed by bitcoin vaults; when these vaults were liquidated due to a false low price, the stablecoin's collateral was drained, causing a loss of confidence and 99% devaluation.
Can the Balance stablecoin recover?
The article does not mention recovery plans; with $1 million lost, a full recovery would require external capital or compensation from the team, which is uncertain.