By: Ethan Rodriguez
The crypto token of Gala Games, GALA, has undergone an accelerated sell-off over the weekend following the emergence of a lawsuit alleging theft of GALA tokens. Concerns surrounding the viability of games within the Gala Games ecosystem have further contributed to the sell-off.
GALA’s downward spiral continued throughout the weekend as apprehensions about the network persisted. The token plummeted to a low of $0.016, its lowest level since January. This represents a decline of over 70% from its peak value recorded earlier this year.
About Gala Games
Gala Games is an aspiring leader in the gaming industry. Co-founded by a former executive from Zynga, which was recently acquired for $11 billion, Gala Games provides a platform and technology that facilitates the development and monetization of games by developers. Over time, the company has attracted notable builders, and its portfolio includes popular games such as Champions Arena, Dragon Strike, Poker Go Play, Spider Tanks, and Townstar, with numerous other games still in the development pipeline.
Several factors have contributed to the recent decline in GALA’s price. Firstly, the cryptocurrency market has experienced a broader downturn, impacting the value of GALA alongside other major cryptocurrencies such as Cardano, Ethereum, and Solana. Rising interest rates in the US have also made cash a more attractive investment option compared to cryptocurrencies.
Secondly, the blockchain gaming and NFT sectors have experienced a loss of momentum this year. Despite Gala Games boasting a diverse portfolio of games, none have achieved the anticipated mainstream success. Most notably, internal conflicts within the platform have prompted many investors to divest their GALA holdings.
These conflicts culminated in a high-profile lawsuit against Eric Schiermeyer and Wright Thurston, the co-founders of Gala Games.
Lawsuit Highlights
- The plaintiffs allege that the co-founders misappropriated approximately 8,645,014,077 GALA tokens, valued at over $130 million.
- These tokens are essential to the functioning of the Gala Games ecosystem, facilitating transactions within the network.
- The lawsuit has raised concerns about Thurston’s past legal history, including a previous lawsuit filed by the SEC and involvement in companies that have subsequently collapsed.
GALA Price Forecast
Technical analysis of the GALA token chart reveals a prolonged downtrend in recent months. The token recently breached the critical support level of $0.018, marking a new low since June 10th. GALA has fallen below its 50-day moving average, and the Relative Strength Index (RSI) has dipped into the oversold territory.
The bearish outlook for GALA suggests the potential for further decline, with the next support level at $0.015, the lowest point observed this year. A break below this level may trigger a drop towards the next support at $0.010.
Credit and rights: MigBase.com