Gala Games' Native Token $GALA Plunged 27% on Rumors of a $1 Billion Crypto Hack

Luckily, the unusual activity of pGALA tokens is only part of the efforts to safeguard a faulty pool on PancakeSwap.

Nov 4, 2022
by Akira Ming
Gala Games' Native Token $GALA Plunged 27% on Rumors of a $1 Billion Crypto Hack
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$GALA tanked 27% after fears of a billion-dollar crypto hack

Chaos ensued on late Thursday when Gala Games' native token, $GALA, plunged 27% on rumors of a billion-dollar crypto hack. According to reports, it all began when people noticed a single blockchain address minting over $1 billion worth of $GALA from nowhere. 

Blockchain analytics firm PeckShield was the first to flag the unusual activity before pointing out that pNetwork, a cross-chain DeFi and NFT game routing protocol, was behind the mint. However, it didn't help allay fears when bad actors took advantage by calling Gala Games a "rug" and "scam", spreading more FUDs in Crypto Twitter. 

In a bid to clear all confusion, pNetwork quickly issued a statement explaining the reasons behind the billion-dollar mint. According to the firm, the mint was necessary to help drain a faulty PancakeSwap pool containing pGALA tokens. 

The company also said they've been working closely with Gala and several other exchanges to restore token balances and the functionality of pGALA deposits and withdrawals.

"A misconfiguration of the pNetwork bridge necessitated the redeployment of pGALA. We're working directly w/the Gala team and w/ exchanges to provide the necessary pGALA balances to restore functionality of pGALA deposits & withdrawals," wrote pNetwork in a tweet. 

With that, the DeFi company also urged users to stop buying pGALA as the newly bought tokens will be unredeemable and rendered worthless. Until the issue gets resolved, all pGALA purchased from PancakeSwap are not pegged to the real $GALA itself. 

However, the white hat attack doesn't affect any $GALA tokens on Ethereum. As pNetwork said: "All $GALA tokens on Ethereum as well as the underlying bridge collateral are SAFE." In short, the token was not hacked, breached, or exploited in any way, according to Gala Games. 

As of writing, $GALA has recovered slightly to $0.03527. It was trading at around $0.03956 before the short-lived crash. 

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