- GALA price plunged from $0.0382 to trade at $0.0319, closing the red candle with a 16% drop.
- Fear of a hack arose after one address seemingly minted over $1 billion worth of GALA.
- The white hat attack was constructed by pNetwork as the pGALA token was no longer considered safe.
GALA price suffered a major blow today after reports of an apparent $1 billion attack began circling. While the attack was indeed true, it was not initiated out of malicious intent or by any outsider but from within as a means of safeguarding. Soon after, a breakdown was issued, leaving GALA investors at a loss.
GALA price breaks down
GALA price noted a major drop as panic ensued in the community due to what appeared to be an attack on the token. During the late hours on Thursday, over $1 billion worth of GALA tokens were minted out of one address, leading to the community being alarmed. This led to potential panic selling, which led to the sudden fall in price, with the wick of the candle extending to 29.34%.
However, an explanation was issued by pNetwork, the platform which enables cross-chain asset transfer for tokens, including GALA, which confirmed that the attack was carried out by them. The team stated,
“We noticed pGALA wasn’t to be considered safe anymore and coordinated the white hat attack to prevent pGALA from being maliciously exploited.
Further explaining the same, the team mentioned that due to a misconfiguration on the p.Network bridge, pGALA had to be redeployed. To do the same, the pGALA PancakeSwap pool was being drained, which led to the panic. However, the team assured that no harm or foul came to the network or token and that all GALA tokens on Ethereum are safe.
Regardless of their warning, users continued buying the pGALA token, which slowed down the recovery process for others. pNetwork reiterated that those buying on the PancakeSwap pool could lose everything as the pGALA token at the moment was worthless, and the spent BNB would be hacked.
However, the panic soon ended, with the team reassuring a post-mortem and recovery update over the next few hours.
As for the GALA price, the token was already looking to test the support line of $0.0313, and it did following the price fall. The downtrend wedge that GALA has been stuck in for almost 17 months is reaching its end.
GALAUSD 1-day chart
The bearish crossover developing on MACD shows that GALA could potentially fall through the support and establish new lows near$0.0200. But if the coin recovers from this panic and breaches the downtrend line, investors can expect a rise toward $0.0500.
What becomes of pGALA now?
The team explained that a new pGALA token would be created to replace the old token and would be airdropped to the users that held pGALA before the pool was drained. pNetwork also warned that since no new token has been issued thus, users should beware of scams under the pGALA name.
Furthermore, the team also assured that those who bought their pGALA after the pool began draining would receive their spent BNB back.
More updates on the same can be expected over the next few hours.
