In a recent incident reported by Lookonchain, Gala Games experienced a security breach, where an exploiter minted 5 billion GALA tokens, valued at $214 million. The hacker quickly liquidated 592 million GALA, converting them into 5,952 ETH ($21.8 million) before Gala Games intervened and blacklisted the exploiter’s address, halting further sales.
Gala Games is a platform that allows players to own and control parts of the gaming world, including in-game assets such as land and collectibles. The GALA token serves as the main utility token and primary means of exchange within the ecosystem.
The exploit occurred on May 20, 2024. According to on-chain data, the attacker minted 5 billion GALA tokens at block 19913232. The exploiter then rapidly dumped large amounts of GALA tokens into various Uniswap pools, converting them to ETH. The transaction details below show multiple significant transfers to different addresses and Uniswap pools within minutes of the minting event.
The initial transfer of 3,982,053.73 GALA tokens to an external address occurred at block 19913264. The last significant transfer recorded was 8,175,814 GALA tokens to Uniswap V2 and V3 at block 19913316.
Upon detecting the exploitation, Gala Games promptly blacklisted the exploiter’s address to prevent further token sales. This swift action likely curtailed additional damage to the token’s value and liquidity. Despite the intervention, the immediate impact was substantial, leading to significant selling pressure in the market.
As of today, the price of GALA is $0.04132, with a 24-hour trading volume of $598,444,527.51. The price has declined by 5.53% in the last 24 hours but has shown a slight increase of 0.26% over the past week. The circulating supply of GALA stands at 41 billion, giving it a market cap of $1,679,745,067.
Technical indicators reflect the impact of the exploit. A large red volume bar indicates heavy selling pressure. The price has dipped below the middle Bollinger Band ($0.04340) and is nearing the lower band ($0.03995), suggesting potential oversold conditions. The Relative Strength Index (RSI) is at 42.06, indicating bearish momentum without reaching the oversold threshold.
