Blockchain gaming platform Gala Games has reportedly experienced a security breach, resulting in the loss of over 4 billion GALA tokens.
Gala Games, co-founded by Zynga co-founder Eric Schiermeyer, announced in a post on X (formerly Twitter) on May 21 that they had encountered a major security incident involving GALA tokens.
According to the announcement, the affected wallet has been frozen, but the exact cause of the breach is still unclear.
In another post on X on May 21, Gala Games CEO Eric Schiermeyer disclosed that an unknown person minted 5 billion GALA tokens worth $200 million on May 20, managing to sell about 600 million of them. Schiermeyer assured users that the Gala Games team secured and removed unauthorized access to the GALA contract within 45 minutes.
Following the incident, the GALA token’s value briefly dropped to $0.037, losing nearly 20%, before rebounding to $0.042.
Gala Games, founded in 2018 by Eric Schiermeyer, Wright Thurston, and Michael McCarthy, is a blockchain-based gaming platform focused on giving control back to players. The company has raised a total of $5 million in funding from investors including Block Wolves, Broslyn Capital, CaptureAlpha, DWF Labs, and Ignite Group, according to PitchBook data.
Summary Review: The recent security breach at Gala Games highlights the ongoing vulnerabilities and challenges in the blockchain gaming industry. Despite the swift response from the Gala Games team to secure the compromised assets, the incident underscores the need for robust security measures and internal controls. As the platform continues to develop and attract investment, ensuring the safety and trust of its users will be crucial for its sustained growth and success in the competitive blockchain gaming market.
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