Hack Reversal Has Renewed Investor Confidence In GALA
Gala (GALA) is making headlines today as one of the top-performing cryptocurrencies, experiencing an impressive 18% increase in the past 24 hours. As of 10:42 UTC, GALA was trading at $0.049. This surge comes days after a multi-million dollar hack that caused a sharp price drop.
Hackers Minted 5 Billion GALA Tokens
The hack occurred two days ago, when an attacker exploited a vulnerability in Gala Games’ system, minting 5 billion unauthorized GALA tokens worth approximately $214 million. The hacker then sold 592 million of these tokens for 5,952 ETH, valued at $21.8 million. Gala Games quickly identified the breach and blacklisted the hacker’s address, preventing further sales of the stolen tokens.
Gala Games(@GoGalaGames) was exploited and the hacker minted 5B $GALA($214M).
The hacker then quickly dumped 592M $GALA for 5,952 $ETH($21.8M).
The #GalaGames noticed the exploitation and blacklisted the hacker’s address, preventing further selling.https://t.co/r6nN34z0pH… pic.twitter.com/oW9NIEsIHM
— Lookonchain (@lookonchain) May 21, 2024
Funds Recovered Through Swift Action
In a reassuring update, Gala Games announced they had successfully recovered the funds lost in the hack. According to their blog post, the team’s prompt actions, combined with the involvement of federal law enforcement, led to the return of over $20 million in ETH to the Gala ecosystem.
Details of the Incident
On May 20th, Gala Games’ monitoring systems detected an abnormal transfer of $200 million GALA tokens on the Ethereum network. Recognizing the threat, the team swiftly activated the blocklist protocol on GalaChain, freezing any further unauthorized minting and movement of GALA tokens. Within 45 minutes, 90% of the minted tokens were locked, significantly curbing the potential damage.
Recent Upgrade Helped In Recovery
The recent GALA v2 contract upgrade proved crucial in mitigating the hack. It allowed Gala’s security team to quickly blacklist the hacker’s wallet and freeze the stolen tokens. This decisive action stopped the exploit from escalating further.
Upcoming $GALA(v2) Contract Upgrade https://t.co/cvuj63OtFl pic.twitter.com/1PuIL1UESi
— galagamer.eth (@GalaGamers) May 8, 2023
Gala Games also engaged U.S. Federal law enforcement to address the breach, ensuring a thorough investigation and legal action against the perpetrators. This collaboration points to Gala’s commitment to robust security and transparency.
Restoring Confidence
Gala’s swift response and successful recovery efforts have restored confidence in the GALA token. The Gala team confirmed that the incident was isolated to the Ethereum network and did not compromise the core minting capabilities of GALA on GalaChain. Gala’s internal controls and multi-sig security protocols, designed to prevent such breaches, were highlighted as critical elements in managing the incident effectively.
Users To Be Reimbursed
In addition to recovering the funds, Gala plans to reimburse users who faced high transaction fees due to the hack. They also announced an upcoming governance vote to decide whether the blacklisted GALA tokens should be considered burned, which could impact the token’s supply distribution.
Commitment to Security and Transparency
Expressing gratitude to their partners for their swift assistance, Gala reaffirmed their dedication to security and transparency. They promised ongoing updates as the investigation continues and emphasized their proactive measures to prevent future incidents.
Despite the breach, Gala Chain remains a secure and reliable blockchain platform. The team’s handling of incidents has demonstrated their resilience and commitment to protecting their community and ecosystem.
Looking Ahead
This recovery has rekindled trust within the Gala community, highlighting the team’s dedication to security and progress. As GALA rebounds and gains momentum, the broader cryptocurrency community is watching closely, reassured by Gala’s robust response and ongoing efforts to safeguard their platform.
The breach points to the challenges and unpredictability of pioneering in the web3 space. However, Gala’s effective crisis management and commitment to transparency position them well for the future.
Read More: Breaking ground: Gala’s Santiago Studio propels Mirandus and Empires forward
GALA Breaks Out Of Month Long Consolidation
Source: TradingView
Since April, GALA has consolidated between the $0.046 resistance and $0.039 support. There was a downside breakout two days ago after the hack was reported. However, today’s rebound has seen GALA clear monthly resistance with high volumes. If the current momentum continues, GALA could easily hit a high of $0.07 in the day.
However, if the broader market slows down and GALA buying volumes drop, GALA could end up consolidating around $0.046, now a critical support level. On the other hand, if bears retake control across the market, GALA could retest the $0.039 support in the short term.
GALA Likely Headed To $0.07 Or Higher
Of all the scenarios that could play out today, a rally to $0.07 seems more likely. That’s because of the confidence the GALA team has instilled in investors. At the same time, the broader market is sending bullish signals, with Bitcoin holding firmly above $69k.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
