Web3 gaming developer Gala Games is planning to launch its upgraded GALA token in mid-May. The existing GALA holders will be airdropped the new token, but American crypto exchange Coinbase has announced that it will not support the transition.
The trading platform also disclosed that it would halt trading for GALA on May 12. Coinbase users holding the token in question can still withdraw it to a self-custody wallet before the airdrop of the upgraded one on May 15. Note that leaving your existing GALA on the Coinbase platform will make it impossible to convert it into its new version once it goes live.
Meanwhile, Gala has asked all holders with their tokens committed in various liquidity pools to withdraw them in order to ensure they receive GALA V2. The company says the current GALA token will lack usability and support after May 15.
Why is the transition happening?
In a blog post, Gala stated that the upgrade was needed because the smart contract of the new token will include a code that powers many things, including the decentralized apps and NFT projects. In addition, it will offer a better burn mechanism and improved security.
In a lengthy Twitter thread, Jason Brink, the Gala Games President of Blockchain, explained the evolution of GALA over the years. It was first issued as an ERC-1155 token, but later, the company felt it needed to enhance the token’s capabilities, and as a result, GALA was reissued as an ERC-20 token. Brink says the firm has now discovered other improvements hence the need to roll out an upgraded GALA.
He added that he was not sure why Coinbase had decided not to support Gala’s new move but thinks it could be because of the method of issuance, which appears to be an ‘airdrop’ of extra tokens instead of replacement ones. Brink clarified that the issuance of the upgraded GALA is not a traditional airdrop because the firm is not in any way planning to give holders freebies for owning the existing GALA tokens.
Brink said all GALA holders would receive the exact amount of new tokens as their current holdings.
A section of crypto analysts says the launch of GALA V2 is an airdrop from a technical perspective because the tokens will be sent automatically to self-custody wallets with the V1 tokens.
Meanwhile, Coinbase has remained tight-lipped regarding its reasons for not supporting the launch of GALA V2. But Brink is optimistic that the crypto exchange will reconsider its decision in the near future once Gala clarifies its issuance method.
Coinbase Records Revenue Increase
Coinbase announced a 22% growth in its revenue for the first quarter a few days ago. The increase comes amid a number of regulatory challenges. Last month, the Securities and Exchange Commission served the exchange with a Wells Notice for allegedly offering unregistered securities.
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