Coinbase Suspends PLA Token Trading After PlayDapp’s Smart Contract Suspension

Coinbase suspended PLA token trading on Wednesday after Web3 gaming platform PlayDapp paused the smart contract’s functionality.

“We will continue to monitor developments related to PLA from the issuer and update our customers as more information becomes available,” Coinbase said on X.

PLA’s suspension comes about 4 days after PlayDapp suffered a major security breach. It resulted in a hacker exploiting the platform through a security flaw. The hacker is said to have minted 1.79b tokens valued at over $200m.

The PLA token plunged after the breach. It last traded 0.4% lower on Wednesday at around $0.14, and is down over 15% in the past week.

PlayDapp hack visualized, hacker basically minted 72% of the total supply originally minted. pic.twitter.com/fs2Cz4ZUaJ

— Matt (@mcasto_) February 13, 2024

PlayDapp Offers Reward for Asset Return

PlayDapp acknowledged the hack on the same day, saying it would swiftly take steps to boost security measures. The platform also contacted the hacker through an on-chain message, and offered a reward for the prompt return of compromised assets.

If the offer was declined, PlayDapp said it would collaborate with the FBI and other law enforcement agencies to pursue the hacker. Additionally, it said it would announce a public bounty and seek assistance from a Web3 security provider.

Secondary Attack Mitigated

As part of security measures, PlayDapp said it would temporarily suspend the PLA smart contract for migration purposes. It also said it mitigated a secondary attack, involving unauthorized minting of an additional 1.59b PLA tokens.

“Immediate communication with CEXs ensured prompt action to suspend deposits and withdrawals, mitigating potential losses, and hacker wallets were frozen on major CEXs,” PlayDapp said.

Why would a hacker want to exploit PlayDapp? The platform provides a range of blockchain networks and game dApps. Its native token, PLA, operates on Ethereum, fueling transactions on the platform while rewarding game developers.

Further, PlayDapp features a marketplace where gamers can trade characters and items. This enhances the value of NFTs through processes such as leveling up, strengthening, and combining them.

Coinbase routinely assesses tokens available for trading on its platform. In September, it halted trading for six tokens, including BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX).