Last Updated on November 4, 2022 by Bitfinsider
The original panic, which Gala Games later said was unjustified, arose after a single wallet address appeared to generate almost $2 billion GALA tokens out of thin air, as detected by blockchain security firm PeckShield on November 3.
Fears that the strange behavior was the result of an exploit or rug pull drove the GALA token price to plummet 25.6% from $0.0394 to $0.0293 in a 130-minute period late on Nov. 3, according to CoinGecko data.
Gala Games, on the other hand, took to Twitter on November 4 to dispel the “FUD” around their native token, explaining that “plenty of people are tossing about phrases like ‘hack’ and ‘rug.'” Neither of them are true.”
Gala Games’ blockchain president, Jason Brink, revealed that the strange behavior seen on the decentralized exchange (DEX) PancakeSwap was carried out by pNetwork, which was striving to deplete the liquidity pool in order to protect it from a potential vulnerability.
The answers appear to have alleviated some of the panic, with the GALA token price having recovered somewhat from its 24-hour low of $0.0293 to presently sit at $0.352.
Gala Games confirmed the security of all GALA tokens on Ethereum and GALA-related assets on the GALA bridge. The team, in collaboration with pNetwork, informed the community of its intention to “temporarily cease” bridge transaction operations.
Brink also warned against purchasing pGALA on PancakeSwap “for the time being.”
“A new pGALA token will be issued to replace the previous compromised one,” pNetwork said, adding that it will be delivered to individuals who had pGALA before the pool was drained.
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