NOIDA (CoinChapter.com) — PlayDapp has halted its PLA smart contract operations in response to a hack in which malicious elements illegally minted nearly 1.6 billion PLA tokens.
This was the second attack on the South Korean Web3 game development platform after hackers breached its PLA smart contract on Feb. 9 and minted 200 million PLA tokens. Blockchain security firm PeckShield first brought the attack to the GameFi platform’s attention.
PlayDapp Halts PLA Smart Contract
Following the second exploit by the hackers, the PlayDapp team announced its decision to halt the PLA smart contract. The unauthorized minting led to a substantial inflation of the token’s supply.
Pausing its smart contract operations was vital in halting the continuation of the hack. Moreover, recognizing the severity of the situation, PlayDapp announced a comprehensive recovery plan aimed at protecting its users and restoring trust in its platform.
The plan includes migrating from PLA to a new token, PDA, equipped with enhanced security features such as multi-signature implementation. Furthermore, the new token’s code will separate snapshot, pause, and burn authorities.
Moreover, PlayDapp coordinated with centralized exchanges (CEXes) to reimburse affected users on a 1:1 basis, according to their holdings, at the time of a forthcoming snapshot.
PlayDapp would establish a dedicated migration page and claim portal for victims of the hack not on CEXs. The firm stated that it would rigorously implement compliance through Know Your Customer (KYC) procedures.
PlayDapp Hack Impact On PLA Prices
Following news of the PlayDapp hack on Feb. 9, PLA prices, understandably, plunged to their lowest levels since Oct. 2023. PLA price lost over a fifth of its value since the day of the hack, forming a daily low near $0.143 on Feb. 13.
However, the PlayDapp announcement to launch a new token (PDA) due to the exploit and compensate users 1:1 per their PLA holdings resulted in buyers entering the market in droves. As a result, PLA price on Feb. 14 rose nearly 5% to reach a daily high near $0.153.
If the rally continues, the PlayDapp token might rise to the resistance near $0.155.
Flipping the immediate resistance could see PLA price reach $0.163, but it seems unlikely following the PlayDapp hack news. Moreover, even if the greed-fueled buying pressure propels the token to $0.163, the PlayDapp token would likely correct sharply.
Conversely, a correction could see PLA price drop to the support near $0.14. Breaching the immediate support might force the PlayDapp token to test the support near $0.135 before recovering.
The RSI for PLA was oversold, with a score of 27.34 on the daily charts.
