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Gala Games (GALA) exhibits a bearish stance, with prices slumping continuously. The token lost around 8% within the past day to hover at $0.016 at press time. Gala co-founders Eric Shiermeyer and Wright Thurston filed a suit against each other on 31 August, and GALA has since plummeted by 20%.
Watch out for $GALA #GalaGames 🚨🚨
— CryptoBusy (@CryptoBusy) September 4, 2023
There's currently an ongoing negative catalyst:
The Gala games founders are currently fighting a legal battle in court over $130 M token theft! 👀
Here's the legal complaint: https://t.co/sHtmWcKKiD
Technicals:
It is near a major key level… pic.twitter.com/wC39ZC4ARi
Gala Games’ current CEO, Shiermeyer, stated that Thurston and his company, True North, stole tokens worth $130 million from the platform in 2021. According to the accusations, Thurston moved the amount to 43 separate crypto wallets after initially putting the money under the firm’s control.
The filing shows Thurston sold the assets in complex transactions from September last year to May 2023. Meanwhile, the defendant denied the claims, emphasizing that he kept the crypto in secure wallets.
Further, Thurston filed another suit, accusing Schiermeyer of forcing Gala to waste millions in company assets while lending himself Gala money for personal use.
The court fight among the co-founders has ruined sentiment for GALA price action as the negative debate continues to harm the network’s reputation. Thus, the alt might suffer more downsides in the up-and-coming sessions. Some analysts believe this could be the end of the cryptocurrency project.
Gala games down big!
— Clutch Lux 🎮🇨🇦 (@ClutchLux) September 3, 2023
Since the public knowledge of the internal lawsuits the Gala Games token has crumbled almost completely…
I’m not sure I think Gala Games or the Coin will rebound, this may be the end of Gala Games.
Since starting to write this it’s dropped between another… pic.twitter.com/BjUu5bRZLn
GALA’s increasing investors amid bearishness
GALA has recorded surged retail investors since launching the GALA v2 in May 2023. Wallets holding less than 1,000 tokens added to their balances during the second quarter, increasing from 121,000 to 233,000 between mid-May and 4 September.
Nonetheless, whales have exited within that timeframe. Wallets with more than 100,000 tokens reduced from around 9,000 on 15 May to approximately 500 on 19 May before plunging to 250 as of 4 September.
Also, the trading volumes have surged by more than 270% over the last 24 hours. Amplified trading volumes amid price slumps suggest more declines for the asset in the upcoming sessions.
Potential rebound?
GALA’s technical indicators highlight bullishness for the token. The asset has had its price actions within a falling wedge pattern throughout 2023. The setup comprises price dips between two trendlines and suggests a move equal to the overall wedge height of GALA overcomes the resistance.
The wedge formation pins GALA’s targeted upside at $0.042 by the third-quarter end, translating to an over 150% surge.
The post GALA price weakens as founders face court over $130M token theft appeared first on Invezz.