Gala Games, a blockchain gaming company, urged its community to calm down after misplaced concerns of a multibillion-dollar rug pull or hack caused GALA token temporarily to crash at 25.6%
Gala Games later claimed that the panic started after one wallet address appeared in order to create more than $2 billion GALA tokens. This was flagged by PeckShield, a blockchain security firm.
Fears that this unusual activity was an indication of an exploit or rug pulling caused the GALA token’s price to fall by 25.6%, from $0.0394 down to $0.0293 in a 130-minute period late on Nov. 3 according to data from CoinGecko.
Gala Games, however, took to Twitter to dispel the “FUD” surrounding its native token on Nov. 4, explaining that “lots people are throwing around words like “hack” and “rug”. This is not the case.
Update for everyone: There is a lot of FUD surrounding $GALA…lots and lots of people throwing around words such as “hack” or “rug”. These are not the facts.
This is the true story. Read this update from @BitBenderBrink, and @pNetworkDeFi . https://t.co/ruI16v2Lkv
Gala Games – Spider Tanks LIVE! (@GoGalaGames)
November 4, 2022
Jason Brink, Gala Games’ president for blockchain, explained that the unusual activity on Decentralized Exchange (DEX), PancakeSwap was done by pNetwork. They were trying to drain the liquidity pool to protect it from a possible vulnerability.
$GALA is a concern. Please read this thread by @pNetworkDeFi before you panic.
TLDR: Everything is fine. You have seen activity on @PancakeSwap. This is because pNetwork is trying to drain the liquidity pool. GALA on ETH remains unaffected.
Do not buy $pGALA on PancakeSwap for now https://t.co/bAnHxlVcp1
— Jason Brink aka BitBender (@BitBenderBrink)
November 3, 2022
also confirmed that there was a misconfiguration in a separate tweet. pNetwork is the cross-chain interoperability link used by Gala Games on BNB Smart Chain. Peckshield also tweeted to confirm that it coordinated the white hat attack to stop pGALA being exploited.
Yes, we realized that pGALA was no longer considered safe and coordinated the white hat operation to stop pGALA being maliciously exploited. Although funds are safe, users shouldn’t transfer or purchase/sell pGALA via pancakeswap.
— pNetwork (@pNetworkDeFi).
November 3, 2022
These explanations seem to have calmed panic. The GALA token price, which has partially recovered from its 24-hour low at $0.0293, now stands at $0.352.
Related: Play-to-earn Crypto Games Hack a ‘Matter of Time:’ Report
Gala Games confirmed that all GALA tokens and GALA-related assets on Ethereum were safe. Together with pNetwork and the team, the community was informed of their decision to temporarily suspend transaction activity on the bridge.
Brink advised PancakeSwap not to purchase pGALA “for now.”
“A new pGALA token” will be created to replace that which was compromised, pNetwork stated. It will be sent out to all those who had pGALA prior to the pool’s drain.