Balance Coin crashes 99% after reported $915K exploit

[Oshosondy]

Know the type of fiat stable coins that you will be buying, I do not bring this type of news to this forum before, but I am always reading about stable coins that depegged.

The last one that I read were exploit and depeg of the platform stable coin followed and it happened again, this time to Balance Coin after an exploit which you can read on https://cointelegraph.com/news/algorithmic-stablecoin-balance-coin-plummets-99-after-exploit?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed

Balance Coin, the native stablecoin of Balance Protocol, is trading at $0.001358 at the time of writing, down from $0.9954, according to CoinMarketCap. That is according  to the news, but right now the coin price is $0.0007976.

[OmegaStarScream]

Looking at CMC's trading volume for the past year, it looks like the coin has went days, or sometimes weeks without barely any volume. Not making light of this, as I'm sure there are some people who lost money, but let this be a lesson to stay away from this type of stablecoins. You would think after what happened with Luna, people would steer away from those already.

[$crypto$]

Looking at CMC's trading volume for the past year, it looks like the coin has went days, or sometimes weeks without barely any volume. Not making light of this, as I'm sure there are some people who lost money, but let this be a lesson to stay away from this type of stablecoins. You would think after what happened with Luna, people would steer away from those already.

This is an Algorithmic stablecoin, isn't it? Not backed by real fiat or gold, DAI is a stablecoin backed by crypto assets while Balance coin relies solely on demand and supply.

At least that's what I read in the article.

I do not know why there are some people who believe in this obscure stablecoin, like you said the volume in February of this year aja $0 no activity whatsoever.

[elda34b]

The exploit sounds small compared to other chases. But from the lack of volume, I guess it make sense that it de-pegged hard to less than a cent or so. I guess people who buy this rely more on speculative side of things instead of actually using the token themselves. Makes no sense to pick this one compared popular stable coins.

[Oshosondy]

Looking at CMC's trading volume for the past year, it looks like the coin has went days, or sometimes weeks without barely any volume. Not making light of this, as I'm sure there are some people who lost money, but let this be a lesson to stay away from this type of stablecoins. You would think after what happened with Luna, people would steer away from those already.

This is an Algorithmic stablecoin, isn't it? Not backed by real fiat or gold, DAI is a stablecoin backed by crypto assets while Balance coin relies solely on demand and supply.

At least that's what I read in the article.

I do not know why there are some people who believe in this obscure stablecoin, like you said the volume in February of this year aja $0 no activity whatsoever.

Yes, according to Coinmarketcap, it is an algorithmetic stable coin



Luna stable coin (UST) will not teach many people a lesson which was also an algorithmetic stable coin that people also suspected will depeg in the past and it depegged.

Such stable coins supposed not to exist anymore, but crypto is just very bad in some aspects.

[JeffBrad12]

Many of these hacks always involves oracle, the missing price protection is dead giveaway. Small defi project with low amount of tvl can't protect themselves from these kind of hack, they don't have money for a bug bounty and don't have money to get proper audit.
If they don't have money for keeping up the security, they shouldn't create a defi protocol because it involves people's money. The bitter truth.