“All is well” – Gala Games pleads for calm after multi-billion dollar hacking scare

“All is well” – Gala Games pleads for calm after multi-billion dollar hacking scare

Blockchain gaming company Gala Games urged the community to calm down after misplaced fears of a multi-billion dollar rug pull or hack caused the GALA token to temporarily crash 25.6%.

The initial panic, which Gala Games later suggested was unfounded, came after a single wallet address appeared to mint over $2 billion of GALA tokens out of thin air – which was flagged by blockchain security firm PeckShield on November 3rd.

Fears that the unusual activity was a sign of an exploit or blanket move caused the GALA token price to drop a dramatic 25.6% from $0.0394 to $0.0293 over a 130-minute stretch late on November 3, according to data from CoinGecko.

However, Gala Games took to Twitter on November 4 to remove the “FUD” surrounding its original token, explaining that “a lot of people are throwing around words like ‘hack’ and ‘blanket’. Neither of those are the case.”

Gala Games president of blockchain Jason Brink explained that the unusual activity detected on decentralized exchange (DEX) PancakeSwap was carried out by pNetwork, which was working to drain its liquidity pool as a means of protecting it from a potential vulnerability.

In a separate tweet, pNetwork, the cross-chain interoperability bridge used by Gala Games on the Binance Smart Chain, confirmed that a “misconfiguration” event occurred. It also responded to a tweet from Peckshield to note that it “coordinated the white hat attack” to prevent pGALA from being exploited:

The explanations seem to have calmed some panic and the GALA token price has since partially recovered from its 24-hour low of $0.0293 to now stand at $0.352.

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Gala Games confirmed that all GALA tokens on Ethereum and GALA-related assets on the GALA bridge were safe, the team, along with pNetwork, informed the community of their decision to “temporarily suspend” transaction activity on the bridge.

Brink also advised against buying pGALA on PancakeSwap “for now.”

“A new pGALA token will be created to replace the old compromised one” that will be sent to those who owned pGALA before the pool was emptied, pNetwork said.