Blockchain security firms linked the collapse to a suspected attack on 42DAO, the decentralized organization that governs the Balance Protocol ecosystem.
Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has fallen more than 99% following a reported exploit.
The stablecoin, the native algorithmic stablecoin of Balance Protocol, is currently trading at $0.001358, down from $0.9954, according to CoinMarketCap.
Blockchain security firm PeckShield on Wednesday said the depeg followed a $915,000 exploit of decentralized autonomous organization 42DAO, which governs the Balance Protocol and its BLC token.
TenArmor said it had detected a suspicious attack involving GemJoin and 42DAO on the BNB Chain.
This is a developing story and more information will be added as it becomes available.