Key Takeaways:
- Gala Games was in turmoil as concerns over a prospective billion-dollar hack, or perhaps a rug pull, drove the value of its native GALA token down 20%.
- The pNetwork has provided clarification, stating that GALA was not hacked.
Dread of a probable $1 billion GALA exploit, which raised fears and doubts was disclosed and is now permeating the sector.
Investors became aware that one address had produced more than $1 billion worth of GALA tokens as Thursday came to an end. The community became suspicious as a result, which was only logical. While some believed this to be a token attack, others presumed a significant whale rug-pulling.
A single wallet address appeared to create over $2 billion in GALA tokens out of pure nothingness, which was reported by blockchain security company PeckShield on November 3. This led to the inevitable crash, which Gala Games later claimed was baseless.
President of the blockchain company Jason Brink disclosed that pNetwork was responsible for the suspicious behaviour that was operating to deplete the liquidity pool on PancakeSwap in order to prevent it from being nefariously manipulated.
Brink advised customers not to buy pGALA at this time on PancakeSwap. The bridge is momentarily delayed, and the PancakeSwap pool is still null and void.
The GALA token price dropped dramatically by 25.6% over a period of 130 minutes late on Nov. 3 from $0.0394 to $0.0293 due to concerns that the strange behavior was an indication of a loophole or rug pull, as per data from CoinGecko.
According to pNetwork’s tweet, all GALA tokens on Ethereum along with the underpinning bridge collateral are Secure, the issue was caused by some sort of “configuration errors of the p.Network bridge.”
pNetworkDeFi admitted to being responsible for the pGALA liquidity pool drain, but it also took a screenshot of the pool on pancakeswap.finance and promised to reimburse the addresses in it. However, because the GALA bridge is suspended, users are urged to stop using pGALA on PancakeSwap and any other BSC DEx.
After the pool is completely exhausted, the company claims that a new pGALA token will be created and airdropped to all prior holders.
“Yes, we realised pGALA wasn’t safe anymore and planned the white hat attack to stop pGALA from being vindictively exploited”, the pNetwork tweeted.
Investors were cautioned not to fall for scams, and pNetwork made it clear that the new token had not yet been released, notifying them that they will formally keep updating about the same.
In a message to the community, pNetworkDeFi stated that they are collaborating closely with the Gala team to supply the required pGALA balances and to reestablish the deposit and withdrawal features of pGALA.
Scams and hacks are not uncommon in the world of cryptocurrencies. However, Only a small portion of people have fallen victim to cryptocurrency scams, despite 2022 being a turbulent year for the cryptocurrency industry.
