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Gala Games was not hacked and they want you to know that. In fact, the blockchain gaming company tweeted to debunk the “FUD” surrounding the decline of their original coin, GALA. While the community was concerned that a hack or a backstroke was the cause of the 90% price drop, Gala Games assured the public that “neither of these is the case.”
Actually no. In fact, Gala Games was not hacked. Instead, the price drop started when PeckShield, a Blockchain security firm, noticed about $1 billion GALA marked by a single wallet. They notified Gala Games via Twitter that the problem came from a “misconfiguration” with pNetwork, a platform that allows cross-chain operation.
Essentially, Gala Games is partnering with Polygon to use pNetwork. Ideally, the deal allows users to trade their assets with low gas fees. However, the bridge became defective, causing many coins to be minted at once. Some feared that the Gala Games were hacked, but in fact they were not. pNetwork replied to PeckShield, says that “pGALA was no longer considered safe.” Then pNetwork led a white hat hack to prevent pGALA from being “maliciously exploited.”
Jason Brink, Gala Game’s President of Blockchain, explained that “Everything is good. The activity you’ve been watching @PancakeSwap pNetwork is working on emptying the liquidity base.”
In fact, the white hat hack happened to protect users’ assets. According to pNetwork, it is necessary to redistribute pGALA. For this reason, pNetowk drained the pool of pGALA on PancakeSwap. Because of this, users should not buy or sell on PancakeSwap for the time being. According to pNetwork“Money is safe, but users should NOT transfer or buy/sell pGALA on pancake exchange.”
Jason Brink of Gala Games echoed the same sentiment when he Tweeted“Don’t buy $pGALA on PancakeSwap for now.”
In temporary measures, moderators suspended the GALA bridge. While redemptions are not processed and users may not complete transactions, GALA has informed the community that the funds are safe.
Not to mention, pNetwork will send an uncompromised GALA token to users in the next few days to replace the previous one. This, according to pNetwork will arrive “in the coming days to those who had pGALA before the pool was emptied.” As such, GALA has advised users not to trade with pGALA until they have new tokens in hand.
Initially, Huobi noticed a large influx of tokens being exchanged. This was early into the event, later called a misconfiguration. Due to the sudden rise and the fear of Gala Games being hacked, the prices of GALA fell by as much as 90%. Huobi removed GALA soon after.
Gala Games wants everyone to know that this was not a hack. For now, players are advised not to buy GALA with PancakeSwap and wait for new pGALA tokens to be sent. Administrators suspended the pNetwork bridge until further notice.