- Gala Games witnessed a potential $1 billion token hack.
- Market fear lead to a 20% dip in the GALA toke value.
- pNetwork said they caused the minting as a safeguard.
On October 3, a potential billion-dollar hack lead to a tank of 20% for the play-to-earn Gala Game’s GALA token price. However, a firm associated with Gala said that the company attacked itself as a safeguard measure to protect its money.
Web3.0 digital creator, @megbzk shared the news on Twitter announcing someone minted GALA worth $1 billion and then started to dump, draining a pancake swap pool to zero. The Twitter user also attached BscScan transaction hash as the source.
Source: https://t.co/fgzohqXU3H— megbzk (@megbzk) November 3, 2022
According to the transaction details, a single blockchain address seemed to mint GALA tokens worth such a massive amount. However, crypto watchdogs PeckShield noted that DeFi routing infrastructure and gaming tokens company, pNetwork, which is also responsible for GALA were the ones accountable for the mint.
We noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited
Continued in the tweet, pNetwork clarified that “All GALA tokens on Ethereum as well as the underlying bridge collateral are SAFE.”
PancakeSwap allows users to swap cryptocurrencies independently via pools. The pNetwork added that the freshly minted pGALA tokens drained pGALA pools of other currencies.”For the time being, please consider the existing pancakeswap.finance pool to be invalid,” pNetwork shared and stated that the old faulty pGALA tokens will soon be replaced with new ones for users who owned pGALA token in the drained pool.
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