Coinbase Suspends PlayDapp Trading After Hack, PLA Price Reacts
February 14 2024 - 4:00PM
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Coinbase has temporarily suspended the gaming platform PlayDapp’s
token trading and transfer activities after the recent hack that
resulted in the theft of 200 million PLA tokens. Recent updates
from the Web3 platform have shared some insight into the
investigation process. Related Reading: XRP Price Poised For
Liftoff? Whale Holdings Soar Despite Ripple Hack Suspension Of
Trading Activity On Coinbase On Thursday, the news of the hack was
first informed by the security platform Cyvers Alerts on X
(formerly Twitter). PlayDapp’s team later confirmed the security
breach and immediately contacted partnered exchanges to take
measures to protect the holder’s assets. The gaming platform
contacted major centralized exchanges (CEXs) to request deposit and
withdrawal suspensions due to the hacking incident and promptly
reported to the authorities about the case. On Monday, the team
shared an urgent notice post detailing the state of the
investigation and the temporary measures it would take to minimize
the hack’s impact on PLA holders. Following this request, Coinbase
announced the suspension of PLA’s trading and transfers across
their website, Coinbase Prime, Advanced Trade, and Coinbase
Exchange. The exchange expressed its intention to continue
monitoring the developments from PlayDapp before giving new updates
to customers. We will continue to monitor developments related to
PLA from the issuer and update our customers as more information
becomes available. Learn more: https://t.co/PoDxz71eAp — Coinbase
Assets 🛡️📞 (@CoinbaseAssets) February 14, 2024 In the notice post,
the team informed of its current collaboration with exchanges,
blockchain intelligence, security firms, and law enforcement
agencies to investigate and resolve the issue further. It has now
extended its petition to temporarily pause all liquidity and pool
activities related to PLA to decentralized exchanges (DEXs).
According to the circular, decentralized exchanges (DEXs) have
hindered the hacker’s attempts at dispersing the stolen tokens.
Migration Process And Price Reaction PlayDapp tried to negotiate
with the hacker to retrieve the stolen funds. However, the attempts
failed as the hacker “showed no willingness to help recover
holders’ losses,” which resulted in an additional attack that led
to the issuance of an additional 1.59 billion PLA tokens.
Subsequently, the team continues investigating the hacker’s
intrusion methods to prevent further attacks, and they’re currently
tracking the minted and swapped tokens by the hacker. Due to this,
PLA Holder’s assistance has been requested, asking users for “the
halt of transactions because we will conduct a migration based on
the snapshot shortly.” The platform has been discussing with
exchanges to assess the best migration solution. The most recent
update further details the attack’s damages and the coming
migration process: We are estimating the scale of damage for the
initially minted 200 million tokens, while it’s confirmed that
there is minimal damage from the secondary minting of 1.59 billion
tokens. Currently, the transactions associated with the hacker are
being tracked by security firms, so most of the invalidly minted
tokens will be filtered out during the migration process. Loss of
ownership over the token smart contract opens the possibility for
further attacks on PLA tokens. As the update explains, PDA is an
upgraded version of the new token. It introduces multi-signature
implementation, snapshot, pause, and burn authority separation for
management while removing minting authority for stability. PDA will
also introduce a DAO voting system, and it can only be swapped at a
1:1 ratio using wallets not associated with the hacker. PlayDapp
will coordinate with CEXes to reimburse PDA to PLA-holding users
during the migration. Affected users will be reimbursed using the
“current user balance holdings as per the snapshot timing” and
receive the full token holdings at a 1:1 ratio. The team will
announce the snapshot time in a future update. According to
CoinMarketCap data, the PLA price dropped from $0.1823 to $0.1498
after the attack. Since then, the token price has hovered around
$0.14-$0.16. The price dropped to $0.1383 after the Coinbase
announcement, a 13.35% drop in the last seven days. PLA’s daily
trading volume at writing time is $5,786,268, representing a 23.4%
decrease in the previous 24 hours. However, after the most recent
migration plan update, PLA’s price surged 1.2% in the last hour and
3.7% in the previous 24 hours, as the token trades at $0.1524,
perhaps signaling a change in holder sentiment after the recent
development. Related Reading: Bitcoin SV (BSV) Price Dips Following
Coinbase Delisting PLA is trading at $0.15 in the hourly
chart. Source: PLAUSDT on TradingView.com Featured image from
Unsplash.com, Chart from Tradingview.com
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