Key Insights
- The price of GALA token plummeted by more than 25%.
- The blockchain security and analytics platform, PeckShield, drew attention to an exploit.
- After the panic that followed, the native token of the GALA ecosystem, GALA dropped sharply from $0.0394 to $0.0293 in a single 25.6% move.
Gala Games is one of the biggest names in the play-to-earn space.
However, after a recent wave of speculation about a “supposed” billion-dollar exploit, the price of its native token (GALA) has plummeted by more than 25% over the last day.
The blockchain security and analytics platform PeckShield drew attention to this exploit.
According to PeckShield, a misconfiguration on the pNetwork bridge, a multi-chain routing protocol used by Gala Games on the BNB smart chain, was the cause of the anomaly.
The Defi and gaming token protocol (pNetwork) trying to drain its liquidity pool is why it appeared that a single address “appeared to mint” $2 billion GALA tokens out of thin air.
After the panic that followed, the native token of the GALA ecosystem, GALA, dropped sharply from $0.0394 to $0.0293 in a single 25.6% move.
And because of this, Gala games itself took to Twitter to calm its investors, stating that the speculation surrounding the hack was “unfounded” and that none of the “hack” or “rug-pull” reports were the case.
The GALA “Hack” Is Not a Hack, Says Jason Brink
According to a tweet from Jason Brink, the president of Gala Games, the unusual activity detected by PeckShield on the Decentralized Exchange, PancakeSwap, was a result of pNetwork working to drain its liquidity pool and safeguard its network from potential exploits.
Brink further implored investors to avoid buying pGALA on PancakeSwap for now. “Everything is fine,” he said in the tweet. “Do not buy $pGala On PancakeSwap for now.”
In a separate tweet, pNetwork addressed the issue and confirmed that a misconfiguration caused the issue. pNetwork also noted that it has “coordinated” a white hat attack to prevent future “malicious exploits” on its network. Like Jason Brink stated, pNetwork also reiterated that users should not transfer, sell or buy pGALA on PancakeSwap for now.
“For the time being, please consider the existing PancakeSwap pool to be invalid. Please do not initiate swaps to and from this pool.” pNetwork said.
GALA Price Analysis
So far, the price action on GALA appears to be cooling down, with the token having recovered 8% already from its 25.6% dip.
After breaking the $0.447 support to the downside back in mid-September, the cryptocurrency has tried and failed to return to zones above this level.
But after last week’s bullish streak across the market, GALA rose for a retest of this level and was rejected on 30 October when the market started to cool off.
After a brief inter-day range, the “FUD” from the $2 billion GALA scare came in, sending the price plummeting almost 30% to the downside.
The cryptocurrency has entered a retracement and is now trading at $0.3464 after hitting $0.2706. From this point, a price increase and a retest of the $0.0447 zone can be expected as GALA tries again to break above this level.
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