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Gala Games: $1B Hack Scare Tanks GALA Price By Nearly 30%

2 mins
Updated by Kyle Baird
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In Brief

  • A single blockchain address appeared to mint over $1 billion with of GALA tokens.
  • Despite speculation, Gala Games says “everything is fine.”
  • GALA token price crashed nearly 30%.
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A single blockchain address minted over $1 billion worth of GALA tokens. Is Gala Games the next in line to join a billion-dollar-hack list? The team claims that it’s not.

Details are thin on the ground at the time of press, but there are growing narratives around a potential exploit in the Gala Games camp. Twitter was rife with users/analysts highlighting the news. 

Once a pioneer in the play-to-earn space, Gala Games witnessed increased speculations of an alleged attack. Fears of a potential exploit worth billions of dollars surfaced as its native GALA token price plummeted. 

At the press time, the respective token was trading at $0.033.

Gala Games ‘hack’ just a false alarm?

The Blockchain security and data analytics company, PeckShield, raised concerns to the team during the early hours on Nov. 4. Although it looks like the issue was under control after maintenance was done on a ‘faulty’ PancakeSwap pool. 

The play-to-earn platform took to Twitter to try and quell the chaos.  

Soon, pNetwork, a multi-chain routing protocol for DeFi and gaming tokens, shed some more light in a series of tweets. The initial tweet read: 

“A misconfiguration of the 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 the functionality of pGALA deposits & withdrawals.”

It urged users to “not initiate swaps to and from this pool.” Meanwhile, all ‘GALA tokens on Ethereum and the underlying bridge collateral’ remained safe.

The said team initiated the discussed draining of the pGALA PancakeSwap pool’s liquidity (of other currencies). Instead, a newly configured collection would replace the older version. 

 “A new pGALA token will be created to replace the old compromised one and airdropped in the coming days to those who had pGALA before the pool was drained,” pNetwork said.

But the new token wasn’t issued Yet. Ergo, it asked to maintain caution. 

Taking the blow

Despite reassuring tweets, the damage seems to be done. The respective GALA token saw a massive 30% price correction. Users and HODLers fearing the worst sold off their holdings as the price depreciated. 

The fear was justified, given the volatile nature and ever-growing hacks within the DeFi sector

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Shubham Pandey
An engineer and an accountant by degree, Shubham ventured into the crypto world to pursue his passion. He believes digital currencies will redefine our economies in the decades to come, which drove his transition into this industry. Shubham has a multicultural background, having lived across India, Qatar, Oman and Australia. He is currently settled in Melbourne. As a News Writer, Shubham aims to actively analyze trends in the crypto world and break it down for everyday readers.