After the hacker attack, the value of a certain altcoin plummeted to nearly zero

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After the hacker attack, the value of a certain altcoin plummeted to nearly zero

2026-07-23 12:11:56

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Algorithm stablecoin Balance Coin suffered a oracle attack and lost more than 99% of its value.

Algorithm stablecoin Balance Coin lost more than 99% of its value after an attack on its oracle pricing mechanism. The token's price fell from about $1 to $0.0014, almost wiping out its nominal market value of about $3.5 million.

According to blockchain security company SlowMist, the attacker transmitted an abnormally low bitcoin price to the protocol, causing a vault that should not have been liquidated to be liquidated. The attack resulted in approximately $912,000 in assets being withdrawn from the 42DAO protocol in a transaction.

Slow Fog stated that the root cause of the attack was that the protocol accepted the low BTCB price offered through Median Oracle without adequate inspection. According to reports, attackers used the "poke" function in the Spotter module and the "bark" function in the Dog module to introduce manipulated prices into the system.

According to analysis by security companies, the Spotter module lacks security mechanisms such as price deviation control, maximum depreciation limit and minimum price protection. Therefore, abnormally low prices are recorded directly in an accounting module called VAT. The Dog module's ability to use updated prices without any waiting periods or additional oracle verification allows attackers to immediately liquidate multiple vaults backed by BTCB. The breached collateral was then converted into other assets, resulting in a profit of approximately $912,000.

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