Gala Games has called for all GALA token holders to migrate to the new V2 contract following the illegal minting and sale of 5B tokens.
As a prompt and urgent response to a security vulnerability, Gala Games has issued a call for all token holders to instantly migrate to the new V2 contract.
This caution comes after the illegal minting and sale of 5 billion GALA tokens, which resulted in a significant decrease in the coin’s value. Given the scheduled expiration of the V1 $GALA contract at midnight UTC, the transition to V2 is crucial.
Gala Games Urges Holders to Switch to V2
Gala Games published a message requesting all individuals with GALA tokens to immediately transfer their holdings to the V2 contract.
In order to prevent further losses following the exploitation of a vulnerability that resulted in the minting of 5 billion tokens, which were subsequently sold on the Uniswap decentralized exchange, it is highly important to take this action.
A reduction in the value of GALA of about 15% occurred in just a few hours as a result of the fast sale of these tokens on May 20th, which made the situation even more detrimental.
In addition, the company has communicated the specific stages involved in the migration process through its official channels, drawing attention to the significance of concluding the transfer prior to the termination of the previous contract.
If the holders do not migrate to the V2 contract, they may suffer significant financial losses due to the fact that the V1 contract will eventually cease to exist. Gala Games has already faced security issues in the past.
As a result of an exploit that affected around 8.65 billion GALA tokens, the platform suffered a loss of $130 million at the beginning of the year 2021.
As a result of the tragedy’s aftermath, co-founders engaged in legal conflicts with one another, which hampered recovery efforts and lowered investor trust in the company.
Gala Games has been trying to tighten its security processes and infrastructure in order to prevent further security breaches, taking into account the ongoing security issues that have been occurring.
Gala Games is undertaking the transition to the V2 contract as part of its efforts to further reinforce the platform’s safety and the trust its users have in it.
GALA Market Reaction
Following the hack, the price of GALA dropped significantly, which is the market’s usual response to a security breach. The token’s value had a substantial decline in a very short amount of time, going from a peak of $0.0467 to a low of $0.0397.
Despite this, the V2 contract installation is a step in the right direction toward addressing the shortcomings of the Gala Games technology platform.
If successfully implemented, it will not only restore security but also enhance the network’s capacity for transactions and efficiency, thereby restoring investor confidence.