$1B Hack Scare Tank’s GALA Price By Almost 30%

by Arthur · November 3, 2022

A single blockchain address created over $1 billion worth of GALA tokens. Is Gala Games next in line to join a billion-dollar hack list? The team claims it isn’t.

Details are thin on the ground at press time, but there are growing tales of a potential exploit in the Gala Games camp. Twitter was full of users/analysts highlighting the news.

Once a pioneer in the games-to-earn space, Gala Games witnessed heightened speculation about an alleged attack. Fears of a potential exploit worth billions of dollars surfaced as the original GALA token price fell.

At press time, the respective token was trading at $0.033.

Table of Contents

Gala Games “hack” just a false alarm?

Blockchain security and data analytics company, PeckShield, traveled concerns to the team in the early hours of November 4th. Although it seems the problem was under control after maintenance was done on a “defective” PancakeSwap pool.

The play-to-earn platform took to Twitter to try to quell the chaos.

Soon, pNetwork, a multi-chain routing protocol for DeFi and gaming tokens, sheds some more light in one series of tweets. The first tweet read:

“A misconfiguration of the p.network bridge necessitated the redistribution of pGALA. We are working directly with the Gala team and with exchanges to provide the necessary pGALA balances to restore the functionality of pGALA deposits and withdrawals.”

It urged users to “not initiate exchanges to and from this pool.” Meanwhile, all ‘GALA tokens on Ethereum and the underlying bridge security’ remained safe.

3/n For now, we ask you to consider the existing pool invalid. Please do not initiate switches to and from this pool.

— pNetwork 🦜 (@pNetworkDeFi) 3 November 2022

The aforementioned team started the discussed drain of the pGALA PancakeSwap pool’s liquidity (of other currencies). Instead, a newly configured collection would replace the older version.

“A new pGALA token will be created to replace the old compromised one and sent in the coming days to those who had pGALA before the pool was emptied,” pNetwork said.

But the new token was not issued yet. Ergo, it asked to be careful.

Taking the hit

Despite reassuring tweets, it appears the damage is done. The respective GALA token saw a massive 30% price correction. Users and HODLers fearing the worst sold off their holdings when the price was reduced.

The fear was justified, given the volatile nature and ever-growing hacks within the DeFi sector.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information contained on our website is strictly at their own risk.