GALA Gulps 30% Losses Amid $1B Hack Rumor…

Key Takeaways:

GALA, the native token of Gala Games, tanked nearly 30%
The fall comes amid rumors that hackers had compromised the network
pNetowkr later clarified that the newly minted $1 billion tokens was not a hack

YEREVAN (CoinChapter.com) — GALA price took major blows on Friday amid rumors that hackers had stolen $1 billion from the ecosystem in the latest exploit. The active utility token of the Gala Games ecosystem tanked nearly 30% before the developers clarified that the apparent hack was an internal job to protect the investors’ funds.

What caused the GALA price to tank?

As Thursday closed, investors noticed that one address had minted over $1 billion worth of GALA tokens. So naturally, this raised suspicions among the community. While some thought this was an attack on the token, others suspected a rug-pull by a major whale.

As a result, panic selling ensued, causing the price to tank.

“Breaking! $GALA has been exploited! Someone has minted $1 billion worth of Gala tokens TWICE and is dumping them… Drained a pancake swap pool to zero,”
digital creator Meg Bzk wrote on her Twitter handle.

Minutes before the news broke, the price of GALA hovered around the $0.04026 mark. Within hours, it had tanked to $0.02881, nearly 30%.

GALA, the native token of the Gala Games ecosystem, price tanked nearly 30% amid fears of a hack. — GALA, the native token of the Gala Games ecosystem, tanked nearly 30% amid fears of a hack. Credit: CoinMarketCap

No one hacked GALA, pNetwork clarifies

Hours after the panic sent GALA tanking, pNetwork clarified that hackers had not compromised GALA. pNetwork enables cross-chain asset transfer for tokens.

“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 further stated.

pNetwork also clarified that they had to redeploy pGALA due to a misconfiguration on the p.Network bridge, assuring that all GALA tokens on Ethereum are safe.

GALA was not hacked, according to a clarification by the pNetwork. GALA price had tanked 30% — GALA was not hacked, according to a clarification by the pNetwork.

Calling on the community to stop buying Gala from PanchakceSwap, the network warned that they risk losing their newly-acquired tokens as they will be unredeemable.

Meanwhile, the team also announced that Gala Games would create a new pGALA token to replace the old compromised one and airdropped it in the coming days to those who had pGALA before the pool was drained.

Warning investors not to fall victim to any scams, pNetwork clarified that the new token had not been issued yet, informing them that they will officially update about the same.

Worried about your tokens? Read our extensive report here about the steps you can take to protect them from hackers.