Gala Games Burns Over $600 Million Worth of GALA v1 After Launching New Token
Following a major overhaul with the launch of a new token, GameFi project Gala Games has announced the burn of 21 billion GALA v1 tokens in an effort to alleviate the sell-off pressure on the old token.
Gala Games Burns Over $600 Million Worth of GALA v1 After Launching New Token
This week, Gala Games reported that it has burned 21 billion GALA tokens, valued at over $637 million at the time of the burn. The project has conducted three burn events in 2023: the first with 2 billion GALA, the second with 3.96 billion GALA, and the most recent with 15 billion GALA. These burns have nearly depleted the GALA treasury, according to the project.
Your Gala V1 funds will remain accessible to you on Coinbase, and you will continue to have the ability to withdraw your funds at any time.
— Coinbase Assets 🛡️ (@CoinbaseAssets) May 3, 2023
The reason for the large-scale burn, according to the GameFi project, is to reduce concerns for current GALA holders, given the potential for significant sell-offs of GALA v1 following the launch of token v2.
As reported by Coin68, GALA v2 officially went live on May 15, with the new token being distributed at a 1:1 ratio to current GALA holders. This means that GALA v1 will become obsolete once v2 is launched.
On May 17, CEO Jason Brink noted that nearly 160,000 different wallets have received GALA v2 after the project completed the upgrade of its smart contracts.
In a separate development, the largest U.S. exchange, Coinbase, publicly announced that it will not support GALA v2. Instead, users are instructed to transfer their GALA v1 to personal wallets and follow Gala Games' guidance to ensure they receive the new tokens. Coinbase did not provide specific reasons for this decision.
Currently, GALA is priced at $0.03, having dropped 7% over the past 24 hours.
