This research report is focused on “Gala games” which solves major issues in the gaming industry. We will focus on how the project works, what value it adds, and review its pros and cons.
The CMP is $0.30 as of 18th Feb 2022.
What are Gala games?
Gala games is a project that operates in the gaming industry (a multibillion-dollar industry) and the NFT industry which is also booming. Its objective is to change the current status quo of the gaming industry by becoming the world’s largest decentralized gaming platform.
It is Ranked #51 (based on Mcap) in the cryptocurrency market. The maximum supply is 50 billion tokens out of which 36 billion tokens are in circulation. It is currently listed on Binance, Coinbase, and Huobi Global.
How does GALA bring value to the table?
Video games were considered a fun activity and were always considered for children. However, the industry has grown significantly since the early 90s and has become a multi-billion-dollar industry. Currently, there are more than 3 billion gamers in the world across all platforms and the gaming space has evolved from extremely simple games to extremely complicated and realistic games.
The above images are from the same game franchise
When video games were published and sold to the public back in the 90s and the early 2000s, they were completed and didn’t involve any internal commerce. However, as the industry size increased, so did game gaming company’s greed. Today, video games follow the “Pay to win” strategy, where people need to buy the game and still pay money to unlock characters within the game. EA sports, the company behind FIFA and Starwars games is always in hot waters due to this very same issue. These microtransactions are responsible for a large portion of the revenue and money has been flowing out of gamer’s wallets.
When it comes to earning money from gaming, out of the 3 billion gamers only a fraction of this gaming community makes money via gaming, they are professional gamers and streamers. Professional gamers play for hours to hone their skills to participate in gaming tournaments for a chance to earn millions as rewards. Streamers are essentially people who livestream their gameplay on YouTube or Twitch and earn money via sponsorships, ads and donations.
Becoming a professional gamer or a streamer is not a simple task. There is immense competition and the barrier for entry is high. In simple terms, making money in the gaming space is extremely difficult.
With the help of NFTs and innovations of blockchains, “Play to earn” is possible. So instead of paying and playing the game, it is now possible to play and earn money. A simple example would be the Mario coins but the coins would have a real value in the world. Axie infinity (A project we have covered) is the market leader when it comes to “Play to earn” and people in the Philippines are making a living off this game.
The current & traditional gaming environment is outdated and GALA games aims to break the trend.
It currently has 9 games under its belt, right from a Farmville equivalent game to a game about zombies and yes, you can earn money by playing the game.
Townstar, the farming-based game, has its tokens, NFTs and an economy and the other games also have a similar structure. Spider Tanks is already picking up in South Korea.
GALA games is currently on the Ethereum network but it has plans to move to it’s own side chain referred to as the “GALA chain sidechain” and it is powered by GALA nodes. There are currently 23,707 nodes online but there are plans for 50,000 nodes, which will make it extremely scalable. You can get yourself a node by purchasing it for approximately 160,000 GALA tokens. Owning a Gala node will allow you to earn NFTs, GALA tokens, governance power and more rewards.
GALA is an ERC-20 token that is primarily used as a currency within the GALA games environment to purchase NFTs, GALA nodes and in the future, it will quite likely be used to pay for transaction fees on the Gala chain.
It is fused into the GALA games environment, so there is likely to be a correlation between the tokens value and the growth of the project. The tokenomics however isn’t made clear by the team and there is an ambiguity involved in this section.
The gaming industry is worth more than 300 billion dollars and GALA games also operates in the NFT space as well making their potential huge. It has a lot of billion-dollar competition in the traditional space, but GALA is trying to beat them but completely reinventing the wheel. It does not have direct competition in the cryptocurrency space. Axie infinity slightly comes close to it.
Team, Media, and Community Strength
GALA games has one of the best leadership team in the industry. These include Eric Schiermeyer, the cofounder of Zynga which is a publicly traded gaming company. It was the company behind one of the most popular poker games. The leadership team includes Michael McCarthy was behind another extremely popular game called “Farmville”
Their media presence is strong & their community strength is excellent, with over 320k Twitter followers & 32k discord members.
- GALA is aiming to solve one of the biggest problems in the gaming space which is worth approximately 300 billion dollars. The token is designed in such a way that if the project grows, the value of the ENJ token will also grow. They have the best team in the industry as the leadership was behind two extremely popular games and know what they are doing.
- Transparency is extremely important in the cryptocurrency space and this is where GALA games suffers. You need to really dig into the limited documentation to understand the project.