Gala Games Destroys Over $637 Million Worth of Own Tokens to Reassure the Gaming Community
In the world of cryptocurrency, companies that have their own tokens often create controversies as they hold a significant portion of the tokens on their balance sheet. These tokens could be sold, making the tokens of existing investors worth less. Gala Games, a gaming company, had a significant stash of its own GALA token, but not anymore. The company has destroyed a large part of its coins to reassure the community.
Massive Token Burn at Gala Games
Gala Games wanted to destroy 2 billion GALA coins this year anyway and announced this in a blog post. The aim was to assure investors and gamers that they were not investing in a coin whose publisher can manipulate its price. The company has realized that the massive inventory it owns could be a source of uncertainty, and that it could theoretically initiate a huge exit scam. Therefore, the company has destroyed another 3.96 billion GALA, which is the entire sales it received in GALA. To get the job done, 15 billion GALA has been added to this process. In total, it has burned almost 21 billion GALA, worth more than $637 million at the time.
Gala Hack Source of Panic
In late 2020, the GALA token crashed after a hacker stole $2 billion worth of GALA tokens. The company announced shortly after that it would destroy everything to prevent the hack from causing problems for investors. In order not to let investors suffer, the tokens were replaced by new tokens, which were distributed through an airdrop to people who were holding onto the GALA token already.
Gala Games’ New Wallet Address
Despite having destroyed the majority of its own coins, Gala Games has kept a small amount in reserve. As a nest egg, it has prepared a new wallet address containing 2 billion GALA, which has been labeled on the blockchain so that everyone can see that the coins belong to Gala Games. As of now, the company only has about 9% of all the coins that will ever exist, which is a lot less than the 40% that it used to have.
By destroying the majority of its own tokens, Gala Games has shown its commitment to the gaming community and investors. The move has also created transparency, as the company has made it clear that it will not use its position of power to manipulate the prices of GALA tokens. The company has taken a significant step towards building trust and ensuring a fair investment for its community.