pNetwork’s $1B loss exposes the vulnerabilities of Web3
pNetwork suffers huge damage after taking a wrong attempt to fix a supposed misconfiguration. However, pNetwork suffered a hacking attempt and showcased the blockchain-based business’s curse. Hackers minted $1B worth of pGALA tokens on BNB Chain’s top exchange, PancakeSwap dropping its price to 94%. The incident exposed the dark side of blockchain-based businesses.
Gala Games got upset after this incident. The Gala Games president said they were not included in that process. pNetwork operates independently, and they did not consult Gala Games before they minted 28.4 B of GALA tokens. However, pNetwork seems to cover their mistake by redeploying the contract.
To this, pNetwork came forward and said that the catastrophic event was due to a mere misunderstanding. Later, it tweeted that it had purposely minted the pGALA tokens to reduce the PancakeSwap pool and protect token holders from the misconfiguration identified in its contract. It further clarified that all the GALA tokens on Ethereum, including bridge collateral, are Safe, and they expressed regret for the inconvenience caused to the community.
The team will return pGALA and BNB tokens to liquidity providers after creating a new pGALA token and airdrop it to the holder’s wallet with the same amount they were holding before this incident.