Huobi claims that the GALA incident was not a white hat operation, as pNetwork stated, but rather a $4.5 million profit for the protocol.
According to the exchange, there were other “premeditated actions” during the incident that netted the people involved more than $10 million in profit. Huobi went on to say that despite speaking with the pNetwork team 50 minutes before the incident, it was not informed that it would attack the pGALA token.
Furthermore, there was no evidence that the vulnerability had been exploited, despite the fact that it had been in the contract for over two months. According to Huobi, the pNetwork team's rush to conduct the attack indicated malign intent to profit from the tragedy.
The exchange also called the release of 55.6 billion GALA tokens to save a pool worth approximately $400,000 ridiculous and thus unjustified.
Huobi converts users GALA tokens to pGALA
Meanwhile, numerous Huobi users were enraged after their GALA tokens were changed into pGALA by the exchange.
After a wrapper version supported by pNetwork, the crypto exchange chose to delist GALA; pGALA lost its value due to the developer minting surplus tokens in a white hat attack.
The extra new tokens drove GALA's price on Huobi almost to zero, with some traders attempting to profit from the situation by purchasing the substantially discounted tokens inexpensively.
Huobi decided to delist the GALA/USD pair and convert GALA to pGALA as a result of this incident. The exchange said that it had decided to safeguard its users' valuables.
The exchange also referred to PGALA as a meme token, claiming that it had nothing to do with GALA. Users, however, were dissatisfied with the move, condemning the exchange's choice on social media.
Huobi users lament
A user stated that they purchased GALA 12 hours before to the occurrence and were surprised that their assets had also been transformed.
Another user asked the US Securities and Exchange Commission to take action against the exchange for arbitrarily changing his tokens.
Meanwhile, Huobi's most recent update confirms that the exchange has completed the renaming and conversion of users from GALA to pGALA. It went on to say that it has “changed our users' PGALA assets to New GALA (hence generally referred to as GALA) at a 1:1 ratio.”
Despite the fact that the exchange appears to have relisted GALA, Huobi would preserve pGALA as a meme currency. The exchange is hosting a PGALA trading competition in which customers can win up to 3 million GALA.
The competition will take place between November 5 and 12, with the winner receiving 200,000 GALA. The winners would be selected by the volume of spot trade.