In the early morning, several Peckshield companies and several Twitter users reported the release of over $2 billion worth of GALA tokens. The developers assured that this was not a hack or fraud.
The situation was really very similar to a hack or a rug-pull scheme, when developers sell a large number of tokens and make a profit, and then the price of the asset drops to zero. In the morning, an address on the BSC network issued over $2 billion worth of GALA tokens and moved them to the pGALA pool on the PancakeSwap exchange. Part of the tokens was transferred to the Huobi exchange and sold, as a result of which the token price fell by 90%. True, only on this site. In general, the market decline is about 25%.
Developers Gala Games declaredthat price fluctuations are related to pNetwork’s bridging activities. The pNetwork team emptied the pGALA pool on the PancakeSwap exchange due to a misconfiguration to prevent a possible vulnerability. This is only about GALA tokens on the Binance Smart Chain network, while the tokens on the Ethereum network remain safe, as well as their security.
The pNetwork team backed up Gala Games’ statement, calling it a “white hat attack.” The developers have reported that the bridge has stopped and the developers are trying to completely empty the pGALA pool. In doing so, the old tokens will then be destroyed and the project will issue new tokens to make up for the losses. New tokens will be distributed among users who owned the old tokens before the start of the events. A compensation scheme is being worked out for users who bought tokens after the incident. pNetwork representatives urged not to buy GALA tokens in the BSC network.
At the same time, it is not yet clear why part of the funds was withdrawn and sold on the Huobi exchange. Due to the incident, the playground decided
remove the GALA token from the listing. Representatives of the exchange assured that they are in contact with the developers of the project and urged clients to wait for further instructions.
Gala Games is a major blockchain and NFT game developer. In the spring, it was reported that it plans to invest $5 billion in the development of projects using collectible tokens.
Source: Bits
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