Blockchain gaming firm Gala Video games urged its group for calm after misplaced fears of a multi-billion greenback rug pull or hack brought about the GALA token to briefly crash 25.6%.
The preliminary panic, which Gala Video games later implied was unfounded, got here after a single pockets deal with appeared to mint over $2 billion GALA tokens out of skinny air — which was flagged by blockchain safety agency PeckShield on Nov. 3.
Fears that the bizarre exercise was an indication of an exploit or rug pull brought about the GALA token value to drop a dramatic 25.6% from $0.0394 to $0.0293 over a 130-minute stretch late on Nov. 3, according to knowledge from CoinGecko.
Nevertheless, Gala Video games took to Twitter on Nov. 4 to dispel the “FUD” surrounding its native token, explaining that “a number of individuals are tossing round phrases like ‘hack’ and ‘rug’. Neither of those is the case.”
Replace for everybody – there’s a LOT of FUD on the market surrounding $GALA…a number of individuals tossing round phrases like “hack” and “rug”. Neither of those is the case.
Right here is the actual story – learn this replace from @BitBenderBrink and @pNetworkDeFi. https://t.co/ruI16v2Lkv
— Gala Video games – Spider Tanks is LIVE! (@GoGalaGames) November 4, 2022
Gala Video games president for blockchain Jason Brink defined that the bizarre exercise detected on decentralized exchange (DEX) PancakeSwap was carried out by pNetwork, who was working to empty the liquidity pool as a method to safeguard it from a possible vulnerability.
Earlier than you panic about $GALA, please learn this thread from @pNetworkDeFi.
TLDR: Every part is okay. The exercise you will have been seeing on @PancakeSwap is pNetwork working to empty the liquidity pool. GALA on ETH is totally unaffected.
Don’t purchase $pGALA on PancakeSwap for now https://t.co/bAnHxlVcp1
— Jason Brink aka BitBender (@BitBenderBrink) November 3, 2022
In a separate tweet, pNetwork, the cross-chain interoperability bridge utilized by Gala Video games on the BNB Sensible Chain, confirmed {that a} “misconfiguration” occasion came about. It additionally responded to a tweet from Peckshield to notice that it “coordinated the white hat assault” to stop pGALA from being exploited:
Sure, we observed pGALA wasn’t to be thought-about protected anymore and coordinated the white hat assault to stop pGALA from being maliciously exploited. Funds are protected however customers ought to NOT switch or purchase/promote pGALA on pancakeswap
— pNetwork (@pNetworkDeFi) November 3, 2022
The reasons seem to have quelled some panic, with the GALA token value since partially recovered from its 24-hour low of $0.0293 to now sit at $0.352.
Associated: Major hack on play-to-earn crypto games a ‘matter of time:’ Report
Gala Video games confirmed that every one GALA tokens on Ethereum and GALA-related property on the GALA bridge have been protected. The staff, together with pNetwork, knowledgeable the group of its resolution to “briefly droop” transaction exercise on the bridge.
Brink additionally suggested to not purchase pGALA on PancakeSwap “for now.”
“A brand new pGALA token can be created to interchange the previous compromised one,” which can be despatched to those that owned pGALA earlier than the pool was drained, pNetwork mentioned.
