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$Gala Games Self-Attack Argument On $4.4M Exploit Failing: Token Bleeds As Community Grows Skeptical

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$Gala Games Self-Attack Argument On $4.4M Exploit Failing: Token Bleeds As Community Grows Skeptical
  • Gala Games is attempting to soothe investors after it was alleged that the platform suffered an attack. The team said that no such attack or hack took place.
  • The P2E games company explained to the community that it had conducted a self-attack with the help of pNetwork to fix an issue, but the crypto community does not seem convinced.
  • One auditing firm called it an exploit and noted that $4.4 million in BSC was taken. The exploiters reportedly minted over 1 billion in GALA on BSC.

P2E gaming platform Gala Games is experiencing a fallout from some community members over a recent security incident. Reports have emerged that hackers made off with over $4 million in GALA. Holders are also seeing a massive drop in their GALA holdings, with little information as to what exactly is going on. Details are scarce, with some conflicting reports on what exactly has happened.

Jason Brink, President of Blockchain at Gala Games, said that fears of a potential billion-dollar hack or rug pull were unfounded. He pointed to an effort with pNetwork, implying that Gala had essentially carried out an attack itself on itself to fix an exploit. Specifically, pNetwork described the situation as,

“A misconfiguration of the p.network bridge necessitated the redeployment of pGALA. We’re working directly w/the Gala team and w/ exchanges to provide the necessary pGALA balances to restore the functionality of pGALA deposits & withdrawals.”

However, others have stated that a hack took place. Smart contract auditing firm QuillAudits explained that the exploiters minted over 1 billion GALA tokens on BSC. They added that the hackers generated a total of $4.4 million in BSC from the exploit.

Meanwhile, Gala and pNetwork are working on creating a new pGALA token to replace the old compromised one. The latter took a snapshot of the pool and the new token will be airdropped to holders.

Community Fuming As GALA Drops by 13%

The community members are understandably angry with what has happened. Users posted images of their liquidations and losses. Most are frustrated about the losses they have experienced. The explanation that it was a self-attack does not look like it has soothed investors’ worries, and the token continues to bleed.

As a result of the incident, the GALA token has dropped by over 13% in the past 24 hours. As soon as reports emerged, the token fell, and it has not made any significant recovery since the updates.

Gala is currently trading at around $0.03, which is a massive drop from about a month prior. The token was trading at $0.04 in late October and is down 90% from its January 2022 high of $0.45.

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Ethereum

SushiSwap Will Run Out Of Money In 1.5 Years

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SushiSwap Will Run Out Of Money In 1.5 Years
  • The funds in SushiSwap’s treasury can only sustain it for another 1.5 years.
  • The decentralized exchange is currently burning through $5 million a year. 
  • CEO Jared Grey has proposed to divert all fees to the exchange’s treasury for one year.
  • A new tokenomics proposal is in the pipeline.  

Decentralized exchange (DEX) SushiSwap has seen an alarming depletion in its treasury. Mounting expenditures paired with uncertainty in the crypto market pose a threat to the decentralized exchange’s operation. Jared Grey, the CEO or “Head Chef” of SushiSwap has spent the past two months analyzing the exchange’s finances. The DEX used to operate with an annual runway of $9 million. That figure has been brought down to $5 million, but that still translates to a runway of just 1.5 years. Grey has come out with a controversial remedy for this situation.

Proposal to divert all of SushiSwap’s fees to the treasury

The Head Chef has proposed that the Kanpai i.e. the portion of the fees that are sent to the exchange’s treasury, be increased to 100%. This would effectively divert all fees from the exchange to the treasury at the expense of Sushi stakers. This diversion of funds would last for a year or until the DEX implements new tokenomics. The SushiSwap chief has indicated that new tokenomics are currently in the works and may come into effect between Q2 and Q3 of 2023. 

An additional benefit of Kanpai’s solution to the Treasury is the diversification of assets, which limits the need for market selling Sushi, which is a net positive for all stakeholders.”

Speaking on the native token SUSHI, Grey revealed that it is currently near full distribution of its supply, ruling out the possibility to use it to fund SushiSwap’s expenses. According to data from CoinMarketCap, the token is currently trading at $1.25. The price has taken a significant hit of 9.5% since the CEO’s proposal came out. Head Chef Jared Grey had posted the same proposal back in October, but it was withdrawn shortly after. It was reinstated following a thorough analysis of the DEX’s finances. 

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Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle

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Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle

Summary:

  • Apple iPod creator Tony Fadell worked on the design for Ledger’s new hardware wallet.
  • The so-called Ledger Stax wallet will feature an e-ink display for users to view NFTs and crypto transactions directly on the device.
  • Stax’s release was announced amid increased interest in self-custody solutions following FTX’s crash.

Ledger, a popular crypto hardware wallet company, teamed up with Tony Fadell for its Stax self-custody solution expected in Q1 2023. Fadell is credited for designing Apple’s iPod device. 

The wallet maker’s CEO and chairman Pascal Gauthier expanded on the approach taken by the company for its Stax hardware wallet. CTO Charles Guillemet affirmed that the aim was to achieve mass adoption with a device that features accessibility and self-custody security for crypto users. 

When we designed Ledger Stax, our biggest requirement from a security standpoint was to fulfill those 3 security properties while improving user experience. What we did was reuse our Ledger Nano security architecture, then we improved the trusted display property.

– Charles Guillemet, CTO.

Fadell designed the Stax hardware wallet with an e-ink display wrapped around the body of the device. Sources said users will be able to view their NFTs and transaction history from the interactive display. 

On the inside, there are built-in magnets to allow users to hold multiple devices securely together. Stax’s size is roughly the same as a regular credit card and features a USB-type C port. Ledger will offer its Stax wallet for $279 come 2023.

Ledger’s Key Timing

The company designs hardware wallets – crypto wallet solutions that allow users to directly manage their digital tokens and private keys. Following FTX’s crash in November, advocacy for self-custody among crypto participants and proponents alike increased. 

Notably, FTX was an investor in the hardware wallet maker before the centralized crypto exchange went belly up. Ledger was however not exposed to the bankrupt platform and was not included in the Chapter 11 filing. 

Ian Rogers, chief experience officer at the wallet maker, told CoinDesk that sales increased as the FTX spiraled down. “We were ready,” Roger said, disclosing that the company set a new record for product sales on November 14, three days after FTX filed for bankruptcy in Delaware on November 11. 

Ledger Taps iPod Designer For New Hardware Wallet Amid FTX Debacle 10
Stax Wallet

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Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings

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Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings
  • BTC Conviction is at an all-time high as long-term investors keep adding to their BTC stack unfazed by the recent news and fallouts according to data from Glassnode.
  • Crypto has been declared dead quite a few times as Fear and Uncertainty is at highs in the crypto industry.
  • Although low conviction holders may have left, sellers may still be here due to miner capitulation, taxes or inflation fears.

We have witnessed one of the most intense months in the crypto industry, with FTX’s fallout and other key players that followed, such as Genesis, Voyager, and BlockFi. Fear, uncertainty, and doubt are at high levels within media outlets as Bitcoin is once again declared dead, and the BTC price dropped to levels as low as $15,700.

“Crypto is now dead: FTX, a cryptocurrency exchange, collapsed last week, proving a lot of cool guys horribly wrong,”. Tweets like this were all over social media when one of the largest crypto exchanges, FTX, collapsed, taking many prominent players with them.

But amid all this uncertainty, long-term Bitcoin holders remain undeterred, and in fact, the pattern is as such that they are currently increasing their long-term Bitcoin holdings.

According to the GlassNodes chart, Bitcoin Hold Waves, this November marked an all-time high of BTC long-term holders, who are now at 66% percentage on the chart. The long-term holders, 3yr to 10 yr, have been holding at a rate like never before, as the percentage of their holdings keeps increasing.

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings 13

FTX’s fallout did not move the BTC markets as much as expected, and this could be due to the low-conviction holders already selling and leaving the crypto industry. It is yet to be confirmed whether this is the bottom of the markets; however, it appears that “bad news” is not necessarily affecting BTC price as dramatically as before. This could be because there are no low-conviction sellers in the market currently.

This is not to say that sellers won’t be there in a further fallout due to other factors such as miner capitulation, taxes and inflation.

Bitcoin Miners Due Capitulation?

According to CryptoQuant analyst Kripto Mevsimi, a further miner capitulation is due to reappear. Mevsimi posted his last capitulation analysis on 6th of June 2022, when the price of BTC was $31,500 and within 1 to 2 days, the price became $18,000. According to him, hte same setup is now forming on the hash ribbon metric.

Crypto Declared Dead Yet Again As Bitcoin Hits All-Time High In Long-Term Investor Holdings 14

“So right now bitcoin difficulty is really high for miners so that means; costs are getting higher and doing business in this kind of environment is getting harder,”

“That’s why miners do not work in full force. If they have efficient- new generation mining machines, they put them into work but that’s all. Inflation is high and people feels effect of living costs, bitcoin price is declining, mining cost and difficulty is getting higher. Tough environment for miners.” wrote Kripto Mevsimi in his most recent blog post.

Kripto Mevsimi confirms that a change in mining difficulty could potentially help the situation.

According to data from BTC.com, mining difficulty is set to drop at 7.08% at the time of writing.

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