The native token of pPlay-to-eEarn blockchain Gala dropped 30% to $0.28 after users misinterpreted an on-chain transaction that minted $1 billion worth of GALA as an infinite minting exploit.
Gala’s community thought that someone had minted $1 billion worth of GALA tokens twice on the BSC chain, then completely drained the PancakeSwap liquidity pool.
However, the pool was not emptied because of an attack. Multi-chain routing protocol pNetwork later explained that it had drained the pool in order to redeploy pGALA after it found a “misconfiguration” in its pNetwork bridge.
Blockchain security firm PeckShield said that pNetwork had “noticed pGALA wasn’t to be considered safe anymore” and executed its own “white hat attack” to prevent a malicious exploit on pGALA.
pNetwork said that pGALA on PancakeSwap is no longer redeemable for real GALA tokens, and anyone who buys the tokens risks losing their funds.
The multi-chain bridge network then implored traders not to buy the dip. “We are trying to drain the pGALA pancakeswap pool so please STOP buying as it will just slow down the recovery process for everyone,” it tweeted.
Jason Brink, GALA’s president of blockchain, reassured users there was no need for panic in a Twitter post on Thursday. “Everything is fine. The activity you have been seeing on PancakeSwap is pNetwork working to drain the liquidity pool. GALA on ETH is completely unaffected,” said Brink in a tweet.