Gala Games, the Blockchain gaming company has urged its community to calm down after there has been a misplaced GALA token hack fear. The fear of a multi-billion dollar rug pull has caused the GALA token to temporarily come down 25.6%.
Initially, panic came after a single wallet address had appeared to shift more than $2 billion GALA tokens out of thin air. On the 3rd of November, this was flagged by the blockchain security firm PeckShield. There were fears surrounding the event and people feared that this was an unusual sign of a rug pull or exploit. This caused the GALA token price to drop extensively to 25.6% from $0.0394 to $0.0293 over a 130-minute stretch, late on the 3rd of Nov. This data has been furnished by CoinGecko.
Today, the GALA games have taken to Twitter and dispelled the FUD surrounding the token. They explained that a lot of people have been tossing around the words ‘rug’ and ‘hack’. However, this is not the case, confirmed the company.
“Update for everyone – there is a LOT of FUD out there surrounding $GALA…lots of people tossing around words like “hack” and “rug”. Neither of these is the case.
Here is the real story – read this update from @BitBenderBrink and @pNetworkDeFi. https://t.co/ruI16v2Lkv
— Gala Games – Spider Tanks is LIVE! (@GoGalaGames) November 4, 2022”
Gala Games president for blockchain Jason Brink has explained that this unusual activity was detected on the Decentralized Exchange (DEX) PancakeSwap. This was performed by pNetwork. They were working to drain the liquidity pool to safeguard it from a potential vulnerability.
“Before you panic about $GALA, please read this thread from @pNetworkDeFi.
TLDR: Everything is fine. The activity you have been seeing on @PancakeSwap is pNetwork working to drain the liquidity pool. GALA on ETH is completely unaffected.
Do not buy $pGALA on PancakeSwap for now https://t.co/bAnHxlVcp1
— Jason Brink aka BitBender (@BitBenderBrink) November 3, 2022”
In a different tweet, the cross-chain interoperability bridge used by Gala Games on the BNB Smart Chain pNetwork has confirmed that a “misconfiguration” event had taken place. It has also responded to a tweet from Peckshield noting that it coordinated the white hat attack from preventing pGALA from being exploited.
“Yes, we noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited. Funds are safe but users should NOT transfer or buy/sell pGALA on pancakeswap
— pNetwork (@pNetworkDeFi) November 3, 2022”
The explanations appear to pacify the ongoing panic. The GALA token price recovered to some extent from its 24-hour low of $0.0293 to now sitting at $0.03481 (at the time of writing, Gala Coinmarketcap).
Additionally, the Gala Games have confirmed that all the GALA tokens on Ethereum and the GALA-based assets on the GALA bridge were safe. pNetwork and its team have informed the community of its decision to suspend the transaction activity for now on the bridge.
Brink has suggested not to buy pGALA on PancakeSwap as of now.
“A new pGALA token will be created to replace the old compromised one which will be sent to those who owned pGALA before the pool was drained.”