Crypto play-to-earn platform Gala Games’ native token GALA (CRYPTO: GALA) dropped 20% late Thursday, as fear rose among investors about a potential hack or even worse — a rug pull.
What Happened: Over a billion dollars worth of GALA was minted by a single blockchain address out of thin air. However, the address was of a company closely related to Gala Games, who had actually hacked themselves to prevent bad actors from stealing users' funds.
PeckShield, a crypto watchdog, detected that pNetwork, which provides routing infrastructure for decentralized finance (DeFi) and gaming tokens, including GALA, appeared to be behind the token release.
See More: Best Play to Earn Crypto Games
According to pNetwork, the white hat attack was organized to prevent GALA from being maliciously exploited. "All GALA tokens on Ethereum (CRYPTO: ETH) and the underlying bridge collateral are SAFE," pNetwork said, stating that some sort of "misconfiguration of the pNetwork bridge" was the source of the problem.
A new “pGALA token will be created to replace the old compromised one and airdropped in the coming days to those who had pGALA before the pool was drained," pNetwork added.
Price Action: Gala was trading at $0.034998, at the time of writing, making recovery to $0.40 mark, according to CoinMarketCap.
Read Next: Dogecoin Sinks 10% As Elon Musk's Twitter Reportedly Suspends Work On Crypto Wallet
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.