The cryptocurrency community has seen some tension recently as Gala Games prepares to upgrade their GALA token on May 15. While the new token’s smart contract promises enhanced burn mechanisms, security improvements, and future upgradeability, major exchange Coinbase has announced that it will not support the move. This has caused some confusion, as the exchange will disable trading for the existing GALA (Gala V1) token on May 12 and will not allow users to receive the new airdropped token (V2).
Users on Coinbase will still be able to withdraw their V1 tokens to external wallets but won’t be able to do much else post May 15 drop. To convert their old tokens, users must move their Gala V1 to a wallet before May 15 and wait for the new token to arrive. Given this situation, Gala V1 holders are left with no choice but to quickly adapt to the change and withdraw their tokens to ensure the receipt of the new token.Gala Games’ President of Blockchain Jason Brink revealed that the upgrade was necessary as the token has evolved from its original Ethereum ERC-1155 token to the ERC-20 standard, requiring enhancements to its functionality.
Interestingly, Brink suspects that Coinbase’s reluctance to support the GALA migration is due to the issuance method’s resemblance to an “airdrop” of bonus tokens, rather than a direct replacement. However, Brink clarified that Gala’s V2 issuance is not a typical airdrop as it’s not intended to provide extra value to its holders but to upgrade the contract itself.
On the technical side, the Gala V2 release is essentially an airdrop, with tokens automatically sent to self-custody wallets holding the V1 tokens. Nevertheless, Gala has deliberately avoided using the term “airdrop,” opting for “drop” or “deployment” in its communications.
When questioned about its decision not to support the upgrade, Coinbase replied with a vague tweet thread, offering no clear explanation. Despite this, Brink remains hopeful that the exchange will reconsider after gaining a better understanding of Gala’s approach.
Coinbase’s decision comes amidst increased regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) and various legal challenges. As a result, the exchange has been cautious about token issuance, which appears to have played a role in this situation, leaving interested parties in the blockchain and crypto communities wondering how it will unfold.
Source: Decrypt
