The Gala Games community was shaken late Nov. 3 when a wallet printed over $1 billion in GALA tokens, causing the asset’s value to plummet by nearly 30%.
While blockchain security firm PeckShield expressed concern about a possible hack, the team at pNetwork quickly responded that it was the perpetrator of the white hat attack — it provides routing infrastructure services for DeFi and Gaming tokens, including GALA.
According to the pNetwork team, it noticed that pGALA tokens were no longer secure, so it coordinated the attack to prevent malicious players from exploiting the situation.
The statement was about a faulty PancakeSwap (CAKE) pool, and the unusual activity was started to drain the pool’s liquidity.
The problem was caused by a “misconfiguration of the p.Network bridge,” according to the pNetwork team. GALA tokens on Ethereum (ETH) and the underlying bridge collateral, on the other hand, are safe.
The GALA bridge has been temporarily closed, and a new pool will be built in its place. According to the team, new pGALA tokens will be sent to each address to restore it to its previous position.
Following the announcement, however, those who purchased pGALA on PancakeSwap risk losing everything because the newly purchased pGALA are not redeemable.
Meanwhile, fear of an exploit drove the GALA token down by more than 20%, to as low as $0.0293.
According to CryptoSlate data, the play-to-earn token has begun to recover and is now trading for $0.035.
Arbitrage traders profited from the PancakeSwap pool’s white hat attack on the Gala token, earning one trader $6.5 million.
According to a Lookonchain Twitter thread, arbitrage traders discovered and began buying the dumped tokens from PancakeSwap, moved the coins to Huobi, and began selling immediately.
According to the on-chain sleuth, the GALA price on Huobi has dropped 99% to $0.0003 from $0.04.
According to the online detective, GALA’s 24-hour trading volume on Huobi was 25.65 billion tokens worth $134.5 million, with an average trading price of $0.005247.
Because of the “material and uncontrollable risks arising from the major accident,” the centralized exchange has been forced to temporarily delist the GALA token.