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Home » $1B crypto hack caused 20% drop in GALA

$1B crypto hack caused 20% drop in GALA

GALA

Panic surrounded Gala Games late on Thursday, as concerns over a potentially billion-dollar hack — or perhaps a rug pull — drove the value of its native token down by 20%. But the company connected to the crypto play-to-earn platform claimed that they had successfully attacked themselves to stop hackers from fleeing with users’ money.

This happened after a single blockchain address was minting GALA cryptocurrency valued at over $1 billion out of thin air. When cryptocurrency watchdogs PeckShield raised the issue, pNetwork—which provides routing infrastructure for gaming tokens and tokens for decentralized finance (DeFi)—seemed to imply that it was responsible for the mint.

The company suggested that the new tokens were created to support pNetwork in draining a problematic PancakeSwap pool. They said 

“We noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited.”

pNetwork shared the information through Twitter that “All GALA tokens on Ethereum as well as the underlying bridge collateral are SAFE,” and explained the error was because of the misconfiguration of the p.Network bridge.

Nowadays cryptocurrency market is full of scams, where project founders have been known to steal everything or pull off rug pulls, this didn’t completely address fears. Regardless of that pNetwork advised users to “not conduct swaps too and from this pool,” many confused (or doubtful) users bought and sold the soon-to-be-deprecated tokens anyway as their price fell.

pNetwork sad through the tweets that 

“Please consider the current pancakeswap.finance pool to be invalid for the time being.”

A new pool that is correctly configured and has the same balance as the old one will be launched, according to pNetwork. The previously compromised pGALA token will be replaced, and a new one will be airdropped to anyone who held the token before the pool was drained.

What is GALA Games?

GALA Games is founded by Eric Schiermeyer who is the co-founder of Zynga (social and mobile games company). In order to build a blockchain-based gaming network and provide players with more control over their games, Gala Games was introduced in July 2019.

It is not just one game; rather, it provides a wide selection of several blockchain games that prioritize pleasure above the blockchain. GALA is the native token of the GALA games and is trading at a value of ₹2.88 with a market cap of ₹20,087,130,747. It is ranked 131 on the coinmarketcap. During the fall it reached the price of ₹2.38 from ₹3.31.

The company hopes to change the gaming landscape by returning ownership of the gaming experience to the gamers. Making “blockchain games you’ll actually want to play” is the Games’ mission.

The thought of not needing gamers to spend hundreds of dollars on in-game items and endless hours playing games that can be taken away from them at any time with the push of a button became the motivation to launch this.

It is providing players authority over the games and in-game assets with the help of blockchain technology, it is aiming to bring back creative thinking in the gaming industry.

In the Gala Games ecosystem, players can control game governance by owning non-fungible tokens (NFTs). Gamers can vote on which games should be funded and developed by Gala via the Founder’s Nodes voting system.

Gala Games uses its own utility token, GALA, in addition to purchasing NFTs for particular games. The company has thus far only made available one playable game, called Town Star, and one NFT collection series, called VOX. Future game releases are planned, including fantasy RPGs, sci-fi strategy games, and tower defense games.

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