Blockchain gaming company Gala Games advised its community for calm after misplaced fears of a multi-big rug pull or hack caused the GALA token to temporarily crash 25.6%.
The first panic, which Gala Games later implied was unfounded, came following a single wallet address made an appearance to mint over $2 billion GALA tokens from nothing — that was flagged by blockchain security firm PeckShield on November. 3.
Fears the unusual activity was an indication of an exploit or rug pull caused the GALA token cost to decrease an impressive 25.6% from $.0394 to $.0293 more than a 130-minute stretch late on November. 3, according to data from CoinGecko.
However, Gala Games required to Twitter on November. 4 to eliminate the “FUD” surrounding its native token, explaining that “lots of individuals are tossing around words like ‘hack’ and ‘rug’. Neither could well be the situation.”
Update for everybody – there’s lots of FUD available surrounding $GALA…many individuals tossing around words like “hack” and “rug”. Neither could well be the situation.
This is actually the real story – look at 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 Edge described the unusual activity detected on decentralized exchange (DEX) PancakeSwap was done by pNetwork, who had been trying to drain the liquidity pool as a way to guard it from the potential vulnerability.
Before you decide to panic about $GALA, please look at this thread from @pNetworkDeFi.
TLDR: Things are fine. The game you’ve been seeing on @PancakeSwap is pNetwork trying to drain the liquidity pool. GALA on ETH is totally unaffected.
Don’t buy $pGALA on PancakeSwap for the time being https://t.co/bAnHxlVcp1
— Jason Edge also known as BitBender (@BitBenderBrink) November 3, 2022
Inside a separate tweet, pNetwork, the mix-chain interoperability bridge utilized by Gala Games around the BNB Smart Chain, confirmed that the “misconfiguration” event required place. Additionally, it taken care of immediately a tweet from Peckshield to notice it “coordinated the white-colored hat attack” to avoid pGALA from being exploited:
Yes, we observed pGALA wasn’t that need considering safe any longer and coordinated the white-colored hat attack to avoid pGALA from being maliciously exploited. Money is safe but users shouldn’t transfer or buy/sell pGALA on pancakeswap
— pNetwork (@pNetworkDeFi) November 3, 2022
The explanations have the symptoms of quelled some panic, using the GALA token cost since partly retrieved from the 24-hour low of $.0293 to now spend time at $.352.
Related: Major hack on play-to-earn crypto games a ‘matter of your time:’ Report
Gala Games confirmed that GALA tokens on Ethereum and GALA-related assets around the GALA bridge were safe. They, together with pNetwork, informed the city of their decision to “temporarily suspend” transaction activity around the bridge.
Edge also advised to not buy pGALA on PancakeSwap “for now.”
“A new pGALA token is going to be produced to exchange that old compromised one,” which is delivered to individuals who owned pGALA prior to the pool was drained, pNetwork stated.
