The price of GALA dropped 20% to $0.038 from $0.047 on Tuesday morning.\n<\/p>\n
Gala Games, a popular web3 gaming network, is reeling after a hacker breached its smart contracts and minted a massive sum of GALA tokens.<\/p>\n
The attack triggered a 20%<\/a> plunge in the price of GALA to $0.038 from roughly $0.047, according to CoinGecko.<\/p>\n A hacker exploited the smart contract for the GALA token and minted tokens worth $240 million.<\/p>\n While the attacker was able to sell roughly 600 million tokens worth $21 million via the decentralized exchange Uniswap, Gala Games moved quickly to freeze the remaining 4.4 billion GALA.<\/p>\n “Our ETH contract for $GALA is secure and under the protection of a multi-sig wallet,\u201d Gala CEO Eric Schiermeyer said<\/a> . \u201cIt was never compromised.”<\/p>\n Schiermeyer also took responsibility for the incident, stating that Gala had made mistakes with its internal control.<\/p>\n \u201cThis shouldn\u2019t have happened, and we are taking steps to ensure it doesn\u2019t happen again,” he said.<\/p>\n The breach was first identified by Solidity developer 0xQuit.<\/p>\n \u201cA compromised or rogue Gala Games admin address minted 5 Billion $GALA ($200M) and has been systematically selling the tokens for the past 2 hours,\u201d they tweeted<\/a>.<\/p>\n Gala Games\u2019 CEO noted the project has identified the culprit and are currently working with authorities.<\/p>\n Regarding daily distribution, Schiermeyer said there will be a vote to decide how to handle this matter, emphasizing that the community will decide how they proceed.<\/p>\n In this context, “daily distribution” refers to the regular release of GALA tokens to network participants, such as node operators and users, as rewards for their contributions.<\/p>\n Schiermeyer noted that the frozen 4.4 billion tokens can be considered “effectively burned,” meaning they cannot be transferred or accessed and are therefore considered destroyed.<\/p>\n The price of GALA has since rebounded to around $0.041. This recovery is partly due to a broader market rally, with Ethereum experiencing a 20% surge.<\/a><\/p>\n Gala Games holds a dominant position in the GameFi ecosystem on Ethereum, capturing over 60% of the user base according to data from Dune Analytics<\/a>. In comparison, The Sandbox follows with 25% of the users, and Axie Infinity comes in third with 11%.<\/p>\nRogue Admin<\/h3>\n
Hacker Identified<\/h2>\n
Dominant in GameFi<\/h3>\n