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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- May 22, 2024 08:17 UTC
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Gala Games Recovers Stolen $23M: Will the “Buy and Burn” Strategy Work?
Hacker returned $22.75 million worth of ETH after stealing $200 million worth of GALA tokens from Gala Games.
Gala Games plans to use the returned ETH to buy and burn GALA tokens to stabilize the token price.
Gala Games is taking steps to regain trust, including offering a community vote on how to address future token distribution issues.
In a surprising twist, Gala Games has managed to regain a large chunk of the funds lost in last week’s hack, marking a crucial moment in the ongoing story of crypto security.
The person behind the breach, which resulted in the loss of nearly 5,950 ETH (valued at around $22.75 million), has returned to the scene, initiating a process of refunding. This follows a troubling security breach that initially caused losses of approximately $200 million in GALA tokens.
Exploiting a loophole in Gala Games’ internal systems, the attacker created a whopping 5 billion GALA tokens seemingly out of nowhere. Taking advantage of this newfound wealth, they quickly sold 600 million tokens on decentralized exchanges, netting roughly 6,000 ETH, equivalent to an astounding $21 million USD.
Now, here’s the story forward.
Gala Games’ CEO Takes Charge
Amidst the chaos, Gala Games’ CEO, Eric Schiermeyer, known as Benefactor, emerged as a beacon of hope for the community. Confirming the return of funds in the Gala Games Discord server, Schiermeyer outlined a visionary strategy called the “buy and burn” model.
This innovative plan involves using the refunded ETH to buy GALA tokens, then removing them from circulation to stabilize the token’s value.
DWF Labs to the Rescue: Working Together
Subsequently, Gala investor DWF Labs stepped in to buy 28 million GALA tokens to reduce the extent of selling in the market. This helped the token recover toward $0.045, albeit less than that observed before the hack incident.
Voting for Stability
Acknowledging concerns about Gala Games’ daily distribution practices, the project empowered its community through a node vote to determine the way forward. This transparent approach underscores Gala’s commitment to its stakeholders and its open business philosophy.
Despite the upheaval, Gala Games stands tall, having reclaimed a significant portion of the stolen funds and implemented strict measures to rebuild trust within the community.
Through collaborative efforts, innovative solutions, and steadfast commitment, investors unite to protect their investments and fortify the market against manipulation.
Also Check Out : Crypto Hack Report This Week: Analyzing Recent DeFi Hacks and Security Breaches
What do you think about Gala Games’ “buy and burn” strategy? Will it work? Let us know.
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