Gamic announces $GNG recovery plan after unexpected security breach

Web3 community platform Gamic has announced a series of recovery measures after facing an unexpected challenge that temporarily disrupted its operations and affected its $GNG token. 

In a message to the community, CEO Ukeme Okuku reassured users that Gamic remains committed to its mission and is taking swift action to protect its ecosystem and supporters.

The CEO acknowledged that an unforeseen event over the past four days attempted to undermine the platform’s progress. However, the CEO stated that the incident does not reflect the firm’s vision or integrity. Instead, it is treating this as a temporary setback and has already put plans in place to move forward.

How Gamic started

Gamic was launched in 2021 as Gamic Guild by a group of entrepreneurs, including CEO Ukeme Okuku. At the time, it was one of Africa’s largest blockchain gaming organizations.

By December 2022, Gamic underwent a significant transformation. The downturn in the cryptocurrency market, including the collapse of FTX, affected many play-to-earn projects, prompting Gamic’s leadership to explore opportunities beyond gaming. 

The company rebranded from Gamic Guild to Gamic and, on December 20, 2022, launched a Web3 social chat application. 

The beta version included features such as token swaps, NFT support, and various chat spaces—public, private, and “dark” channels. The platform was launched on the Polygon blockchain and gained early traction through an NFT airdrop in collaboration with Polygon.

Following this shift, Gamic secured investment. In May last year, the firm announced it had raised $1.8 million across multiple funding rounds. 

Leading investors included Binance Labs and Fundamental Labs, with additional participation from Polygon Ventures, Gate.io, Mapleblock, Mulana, Double Peak Group, Momentum6, DWeb3 Capital, and LD Capital. Prominent angel investors, such as Sandeep Nailwal (co-founder of Polygon) and Vijay Pravin (founder of bitsCrunch), also contributed. 

Gamic’s user base grew rapidly. Between June 23 and September 19, 2024, the platform gained 100,000 users within a single week, demonstrating substantial adoption. Key features such as the platform’s integrated wallet and airdrop incentives played a crucial role in attracting users. 

Through the application, individuals could send cryptocurrency within chats, convert it into local currency (a particularly important feature for users in Nigeria), and earn “GG” rewards for engaging in simple activities such as logging in. 

By October 2024, Gamic reported more than 2 million registered users and over 2,000 active communities, with its influence extending beyond Nigeria to other parts of Africa, Asia, and the United States. 

Gamic featured a point system allowing users to earn GG Points through various activities on the platform, such as signing up for the app, participating in conversations or engaging in community activities, and referring friends to join the platform (e.g., earning GG for each successful referral).

Apart from being designed to enhance user engagement and retention by rewarding active participation in Gamic’s ecosystem, these points are meant to serve as a precursor to more tangible rewards, such as the $GNG token launch and airdrops.

Fall of the $GNG token

After accumulating GG points and exchanging them for $GNG tokens, users encountered complications post-token launch.

The CEO mentioned a security glitch affecting the $GNG token, though specifics of the issue remain undisclosed. In response, the team rolled out a new roadmap.

Blockchain analytics reveal that over 37,000 wallets now hold $GNG tokens. The token, which made its debut at approximately $0.05, peaked at $0.059, only to plummet to $0.003.

Despite this drastic drop, its current market cap stands at $33 million. This predicament has triggered unease among investors and community members.

Recovery plan for Gamic

As part of the new roadmap, the CEO announced that they have reverted the ledger to a point before the issue arose and captured snapshots both before and after the event. This approach will help the team maintain data clarity and ensure every transaction is accurately tracked.

Users who bought and held GNG during the sell-off will be refunded in ETH based on their purchase amounts. Gamic also plans to launch a new token backed by its partners, aiming to bring stability and lay the foundation for long-term success.

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Gamic intends to fast-track the launch of Gamic V3, enhance user security, improve on-chain tools and user experience, and attract new partnerships and collaborations, reminiscent of its peak days.

Ukeme emphasized that liquidity for the affected token, $GNG, will be removed from the DEX. Therefore, all traders and holders should refrain from trading the current token, as it is no longer supported and will not be used in the future.

Community criticism and feedback 

An X account by username @AnichebeLaurine is expressing his dissatisfaction said Gamic was plotting to extort the community. “Instead of allowing the community to have access to the token they mined, they are speaking another grammar to confuse us,” he added.

@MitroLip_ stated that the new update was a waste of time. “Thanks for nothing 😂. If that refund eventually happens, I’ll take it and never look back,” the account posted 17 hours after Ukeme shared the roadmap.

“Imagine staking $40 to get $80 and it unlocks to a total of $3 and nobody has given a clear explanation on how it dumped.”

Amidst these criticisms, Gamic still found support from some community members, like @Dominus_Faruk who said “We stand beside Gamic.” 

“Hats off if you actually pull this off. Would be a solid statement showcasing backing of your community,” @80sbabyvibes said on X.