Coinbase Won’t Support the GALA V2 Airdrop

Gala Games will airdrop an upgraded GALA token to existing owners on May 15. The most popular utility coin in Gala Games is Gala V2. But during the past three months, its price has fallen.

The forthcoming Gala V2 airdrop will not be supported by the cryptocurrency exchange Coinbase, which has said that it would stop supporting Gala V1 on May 15, 2022.

After the V2 coin becomes live, Coinbase holders will still be able to withdraw their V1 tokens to a hardware or self-custodied wallet, but they won’t be able to do much more with those V1 assets after the May 15 drop. 

Users of Coinbase will need to migrate their Gala V1 tokens to a wallet before May 15 and wait to get the new token to convert their old Gala tokens.

Gala has urged holders who have Gala V1 in a liquidity pool or stored in smart contracts to withdraw their tokens to ensure getting the new token. After May 15, the firm declared that Gala V1 will no longer be maintained or used. 

Gala believed that the upgrading of the token was a significant and crucial move for the cryptocurrency. The new token’s smart contract will provide “enhanced burn mechanisms, security enhancements, and future upgradeability,” according to a Gala blog post. Smart contracts are the code that drives tokens, NFT projects, and decentralized apps.

Despite recently reporting a 22% increase in sales over the prior quarter, Coinbase is still dealing with a variety of legal and regulatory issues. Coinbase is being cautious about token issues since the Securities and Exchange Commission (SEC) of the United States is giving the exchange more regulatory attention.

This week, the exchange announced that it is discontinuing its “Bitcoin Borrow” lending program. The SEC dispute, according to the exchange, has nothing to do with this decision.

A major cryptocurrency exchange, Coinbase, stated that it would not participate in the planned Gala Games v2 token airdrop. The exchange justified its choice by citing worries about the token’s security and regulatory compliance.

On May 15, the Gala Games web3 gaming project will airdrop GALA v2 tokens to all GALA holders, according to a blog post by the developers. All users will undergo an automated 1:1 conversion, and the GALA v1 token will no longer be supported.