Gala Games received $23 million in ETH from a hacker who exploited the platform, causing GALA’s price to drop 19%.
TakeAway Points:
- An exploitative hacker sent $23 million in Ethereum to Gala Games, which dropped the price of GALA by 19%.
- CEO Eric Schiermeyer intends to lower the amount of GALA in circulation by using the ETH in a “buy and burn” approach.
- In order to identify the hacker, Gala is working with the FBI and DOJ, and DWF Labs purchased 28 million GALA tokens in order to keep prices stable.
GALA Coin Drops
Gala Games’ (GALA) native token saw a sharp decline on Monday because of worries over a large transfer of GALA tokens that traders thought may have been the result of a hack. At $0.039, the token’s price dropped 19% from its peak for the day, which was reached a little more than an hour earlier. Blockchain explorers have verified that the minting of 5 billion GALA tokens by an unidentified source and their subsequent sale on the decentralised exchange Uniswap were the cause of this dramatic decrease.
Unexpected Coin Minting
The market was unprepared for the unexpected minting and selling of 5 billion GALA tokens. Representatives from Gala Games did not promptly explain this conduct on the project’s Discord server, nor had they previously disclosed it. The traders’ concerns that a hack was the cause of the tokens’ mass minting and sale were heightened by this lack of communication. Gala Games’ failure to provide prompt clarification added to the confusion, causing a quick sell-off and a steep drop in the price of GALA.
Market Response
The sudden and drastic token minting caused a strong and quick response from the market. GALA’s price crashed to $0.039, a 19% decrease from the peak for the day. This notable price change highlights how susceptible the cryptocurrency market is to unforeseen circumstances and how crucial it is for project teams to communicate on time. Trading trust was shaken by the possibility of a hack, which caused a quick sell-off of GALA tokens.
Recuperation Intent
In an unexpected development, the hacker who created and sold the GALA tokens has given Gala Games around $23 million in ETH tokens. This transfer is confirmed by statements on Gala’s Discord server and on-chain records. The CEO of the project, Eric Schiermeyer, better known as Benefactor, stated in its Discord chat, “We will probably buy and burn on galaswap.” This entails purchasing GALA tokens with ETH and removing them from circulation, which may help maintain the token’s value.
“We will probably buy and burn galaswap. We believe we have identified the culprit, and we are currently working with the FBI, DOJ, and a network of international authorities.”
The action was taken a day after the hacker, who has not been identified, used Gala’s internal controls to create 5 billion new GALA tokens. After then, the person made close to 6,000 ETH tokens by selling 600 million of those tokens on decentralised marketplaces. The hacker-linked wallet moved all of its Ethereum to a Gala Games-controlled wallet on Tuesday.
“We think we have found the offender, and we are actively dealing with the FBI, DOJ, and a network of international authorities.” Schiermeyer stated this on Monday.
DWF Labs, a Gala investor, announced earlier on Tuesday that it had bought 28 million GALA tokens “to alleviate market selling pressures.” GALA was still trading below yesterday’s pre-hack highs at press time, at roughly $0.43, despite their attempts.
