After rumors of a billion-dollar rug pull were made public, the blockchain-based gaming company Gala Games stated that “everything is fine.”
GALA token records 90% drop in value
It all started when the pNetwork bridge was configured incorrectly, which resulted in the additional issuance of GALA GAME tokens. Subsequently, a significant amount of additional tokens were recharged and sold on Huobi. This resulted in a drop of 90 percent for the GALA coin on various cryptocurrency exchanges for an instant.
For those who are unaware, pNetwork is a cross-chain communication bridge that is now being used by Gala Games on the Binance Smart Chain (BSC).
Huobi has made the decision to temporarily suspend the token in order to protect the user accounts from further potential harm.
The president of the blockchain company, Jason Brink, disclosed that pNetwork was the platform through which the “unusual activity” took place that was discovered on PancakeSwap. This “unusual activity” was attempting to empty the liquidity pool in an effort to safeguard it from being misused negatively. Brink has strongly suggested PancakeSwap users to refrain from purchasing pGALA at this time.
In a tweet that emphasized the entire incident, pNetwork said, “Yes, we noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited. Funds are safe but users should NOT transfer or buy/sell pGALA on pancakeswap.”
The gaming firm stated that all GALA tokens on Ethereum, as well as GALA-related assets on the GALA bridge, are secure. Additionally, the team contacted the pNetwork to temporarily cease transaction activity on the bridge.
Meanwhile, it was confirmed by the bridge that an updated version of the pGALA token will be generated to replace the earlier, vulnerable version.
Notably, in February this year, GALA announced to invest $5 billion in order to fuel the expansion of its Non-Fungible Token (NFT).
🔥JOIN THECONRISE.COM'S MONTHLY $1000 GIVEAWAY AND FEEL VALUED AS A READER! DON'T MISS OUT! 🔥
