Crypto companies that own their own tokens are often sources of controversy as they hold a large portion of the tokens on their own balance sheet. The tokens could be used to sell them, making the tokens of existing investors worth less. Gala Games used to have a hefty stash of its own GALA token, but not anymore. The company has destroyed a large portion of its coins to reassure the community.
Huge token burn at Gala Games
In a blog post writes the company that it wanted to destroy 2 billion GALA coins this year anyway. This was to assure investors and gamers that they are not investing in a coin whose publisher can manipulate the price themselves. Gala Games says it recognizes that the huge inventory it owns could be a source of uncertainty, the company could theoretically be the source of a huge exit scam can be.
That’s why it has again 3.96 billion GALA destroyed. This is the entire sales it received in GALA. But it does not stop there, to get the job done is up to this process now 15 billion GALA added. In total, it has ‘burned’ almost 21 billion GALA, as it is called in crypto land. That was worth more than $637 million at the time.
Yet the company has not destroyed all of its own coins. As a nest egg, it has prepared a new wallet address containing 2 billion GALA. The company has labeled this address on the blockchain, so that it is clear to everyone that the coins belong to Gala Games. So now it only has about 9% of all the coins that will ever exist, a lot less than the 40% it used to have.
GAL hack source of panic
Late last year, Gala Games’ token GALA crashed after a hacker managed to steal $2 billion worth of GALA tokens. Not much later, the company announced that it was going to destroy everything to prevent the hack from causing problems for investors. In order not to let investors suffer, the tokens were subsequently replaced by new tokens, which HODLers received via an airdrop.