The landscape of the blockchain-based gaming platform GALA has been altered by a legal dispute, causing volatility in the market. In the past 24 hours, GALA price has slightly risen by 0.5%, with its value increasing to $0.01603699. This faint shimmer was ignited following an announcement about the ongoing judicial row involving its co-founders, Eric Schiermeyer and Wright Thurston.
Despite the increasing heat of the legal feud leading to a 21% plunge in the GALA value over the last week and a 32% tumble within the past 30 days, the company affirms that its business operations remain uninterrupted, hinting at a potential recovery once the dust settles. A subsequent growth in GALA’s trading volume, peaking from $400 million to about $800 million, demonstrates the market’s heightened sensitivity towards the situation.
While signs of overselling and a loss of momentum are evident with GALA’s relative strength index falling below 30, the token’s market prospects look rather bleak with its 30-day moving average further below the 200-day average mark and a continuously declining support level, suggesting possibly more downfall on the horizon.
This situation’s severity is accentuated by the hefty allegations each founder has laid against the other, with Schiermeyer claiming a theft of $130 million from the GALA ecosystem by Thurston, who in turn accuses Schiermeyer of misappropriating $600m for personal use. If any of these allegations prove true, it could cause a significant blow to GALA’s reputation and credibility in the broader cryptosphere.
However, an official response from GALA’s general legal counsel, Blake Walker, aims to pacify the alarmed community by clarifying that the controversy is primarily a personal matter between the founders and does not fundamentally affect the gaming platform. If true, the potential rebound could make this a good entry point for investors.
But if the legal issues deeply impair the public’s trust in GALA, it may bear witness to a long road of decline.
In an anticipatory move to counterbalance possible losses, savvy traders are being enticed towards the promising galaxy of alternative altcoins. For instance, Launchpad.xyz (LPX), a Web3 trading platform that has generated over $1.6 million since opening sales last month, guarantees a bundle of features like a play-to-earn gaming hub, collaborative trading rooms, an NFT marketplace to come, and more, all set to make LPX one of the hot new tokens of the year.
While crypto investment always comes with its share of risks, hedging bets on such high-potential altcoins could be the strategic move necessary for weathering the storm currently hovering over GALA.
Source: Cryptonews
