In an urgent response to a security breach, Gala Games has called for all token holders to migrate to the new V2 contract immediately.
This advisory comes on the heels of the unauthorized minting and selling of 5 billion GALA tokens which caused the coin to lose a lot of value. The transition to V2 is crucial since the V1 $GALA contract is set to expire at midnight UTC.
Gala Games Urges Holders to Switch to V2
Gala Games has released a notice calling upon all GALA token holders to move their holdings to the V2 contract immediately. This action is very important to save from more losses after a vulnerability exploited to mint 5 billion tokens that were later sold at Uniswap decentralized exchange.
The quick-sale of these tokens on 20th May caused a close to 15% drop in the value of GALA in just a few hours making the situation worse.
ALERT:
To Prevent Losses from the recent hack, all holders must migrate to the V2 contract now before the V1 $GALA contract gets burned at 12:00AM UTC.
Migrate now
https://t.co/QYEOZ28111 pic.twitter.com/milP0935tc
— Gala Games (@GoGaIaGamrs) May 20, 2024
The company has also stated the detailed steps of the migration process on its official outlets and the importance of ending the transfer before the old contract is decommissioned. Non-migrating to the V2 contract can lead to serious financial losses for the holders since the V1 contract will cease to exist.
Previous Exploits and Ongoing Security Measures
Gala Games has faced security challenges even before now. In the beginning of 2021, the platform incurred a loss of $130 million following an exploit that affected about 8. 65 billion GALA tokens.
The aftermath of the incident created legal disputes among co-founders, disrupting the recovery efforts and weakening investor confidence.
Considering these persistent security problems, Gala Games has been working on strengthening its security protocols and infrastructure to prevent further breaches. Moving to the V2 contract is one of the activities aimed at further strengthening the safety of the platform and trust among its users.
GALA Market Reaction
In the wake of the hack, GALA price declined considerably, which is a typical reaction of the market to the security breach. From a high of $0.0467, the token’s value plummeted to $0.0397, marking a significant downturn within a very short period.
Nevertheless, the implementation of the V2 contract is a positive move towards the weaknesses of the Gala Games platform.
If effectively deployed, it will not only bring back security, but it will also improve the transaction capability and efficiency on the network and regaining investor confidence.
Read Also: Bitcoin (BTC) Price Breaks $70K Barrier: New Whales and Market Trends to Watch
The post Breaking: Gala Games Announces Migration to V2 Following $200M Token Hack appeared first on CoinGape.