- Gala Games crypto token sell-off gained steam during the weekend.
- A lawsuit alleging theft of GALA tokens has triggered this sell-off.
- There are also concerns about the games in its ecosystem.
Gala Games’ crypto token price downward trend continued during the weekend as concerns about the network remained. The token plunged to a low of $0.016, the lowest level since January. It has dropped by more than 70% from its highest level this year.
Gala creators sue each other
Gala Games is a company that aims to become the biggest player in the gaming industry. One of its co-founders was a key player in Zynga, a company that was recently acquired in a $11 billion deal.
Gala Games provides the technology and platform that helps developers build and monetize their games. Over the years, the company has attracted some well-known builders.
Some of the top games in Gala are Champions Arena, Dragon Strike, Poker Go Play, Spider Tanks, and Townstar. Many other games are still in development.
There are several reasons why Gala token price has retreated in the past few months. First, the decline is in line with that of most cryptocurrencies like Cardano, Ethereum, and Solana. High interest rates in the US have made cash more attractive than cryptocurrencies.
Second, the blockchain gaming and NFT industries have lost traction this year. While Gala has several games, none has gone mainstream as expected.
Most importantly, internal strife in the platform has led many investors to dump the token. This strife culminated in a major lawsuit against Eric Schiermeyer and Wright Thurston, the company’s co-founders.
The two have been sued for allegedly stealing 8,645,014,077 GALA tokens worth over $130 million. These tokens are an important part of the Gala ecosystem, where they enable transactions within the network.
The lawsuit shed more light on Thurston, who has been sued by the SEC in the past. He has also been involved in companies that have previously collapsed.
Gala price prediction
The chart above shows that the GALA token has been in a strong bearish trend in the past few months. Most recently, the token moved below the important support level at $0.018, the lowest swing on June 10th.
The GALA token has moved below the 50-day moving average while the Relative Strength Index (RSI) has dropped to the oversold level. Therefore, the outlook for the coin is bearish, with the next level to watch being at $0.015, the lowest level this year. A break below that level will see it drop to the next support at $0.010.
