In this newsletter, we are profiling Gala Games [GALA]. In previous newsletters, we have profiled Bitcoin, Cardano, Stablecoins, Uniswap, and many others. Access all our newsletters in our archives at madcapx.substack.com.
The Short of It
Gala is a project that has to be on your watch list of digital assets that could be a fantastic opportunity for gains, though tokenomics could be murky from some viewpoints. They have good names behind it and are still over 250% behind MANA in value and ten times behind meme coin DOGE.
Gala Games was launched in 2019 by Eric Schiermeyer, a co-founder of the famous Zynga game company (Farmville, Mafia Wars, etc…). It is a non-fungible token (NFT), play-to-earn gaming ecosystem with a mission of making blockchain games you will actually want to play. Their native utility token, GALA, exists on the Ethereum, Binance, and Solana blockchains.
The GALA token has a maximum supply of 50 billion and is used to purchase items in-game as well for rewarding node operators. About 20% of the total supply is in circulation, and you can read more about their distribution at https://support.gala.games/en_US/gala/gala-tokenomics. Gala Games received no venture capitalist money and did not start as an ICO.
Gala uses their own consensus mechanism on its sidechain, which is maintained via three distinct node types: Founder nodes, Paid nodes, and Free nodes. Governance and voting are only available to Founder nodes (of which there can be a total of 50,000). Consensus is obtained using Proof-of-Work (PoW), Proof-of-Stake (PoS), and Proof-of-Storage. This is called their “triple-proof” node system. Founder nodes (using PoW) validate in-game transactions and secure the network. Paid nodes (using PoS) operate for specific games via a smart-contract “rental” structure. Free nodes (using Proof-of-Storage) allow the games to be fully hosted in a decentralized manner. All of these additional node types are still in development.
Although there are a few dozen games in development using the Gala platform, only one, Town Star, is currently available and playable. Players are able to own and place NFTs into the game and influence game settings. There are over a million active monthly players, with tens of thousands of NFTs already sold. Only founder nodes are allowed voting mechanisms to influence what games Gala should develop and what games will get funding.
Gala also produces a set of collectible NFT avatars under the name VOX. Currently, these avatars can be used in the Town Star game. Owners also get their own FBX file, which allows them to animate their avatars or even 3D print them. Other big upcoming games include Mirandus, Echoes of Empire, and Spider Tank.
Overall, Gala is a strong contender in the gaming arena with competition from the likes of Decentraland, Sandbox, and Enjin. Gala Games is one of the only crypto gaming companies that actually had its start in non-crypto gaming, which gives it a considerable advantage regarding making interesting and playable games.
GALA paired to BTC shows a bearish trend since end of November 2021 and is down 60% from the all-time highs. Over the last 2 weeks GALA has been going sideways and is within 7% to the top of the larger trend. If it breaks out above the current resistance the next is to close above the previous high of 660 satoshi to give us a serious sign of bullishness for this chart.
GALA/USD pairing had a massive 1000% gain in November 2021. Like the BTC chart above, GALA started the bear trend that took it down 80% before finding the bottom. Though on this chart, we can draw a larger sideways trend pattern that currently has GALA skimming the support line. So far, so good with higher lows consistently. If GALA does pop from here to all-time highs, it will gain about 268%
The Other Trend Lines
This chart is similar to many in the crypto space. This first one is ETH/BTC on the daily chart giving a fantastic bullish sign. It broke the downward trend line 5 days ago. It had two red candles before continuing upward. The top of the trend is 30% away. If ETH gets proper momentum, could we see it break even further? Time will tell.
Bitcoin would have a 70% gain from today to the top of the trend line.
One more chart has DOT/USD, and this one would be over a 200% increase if the crypto space breaks upward.
Is the bottom in for many of the top digital assets now? Keep an eye on BTC and ETH to continue to move upwards, and if that happens, we could be in for a great chance to catch other assets get gains of 200%+.
This portfolio section gives you an idea of what sort of return you can get when investing in crypto assets.
BTC/USD FUND is up 284% since October 1st, 2020. Since this is a long-term holding, it is best kept in cold wallet storage or a safe custody solution. We continue to see a long-term hold position as our best stable alternative. This past week, bitcoin has ranged between $38,828 and $42,400 USD in value.
FUND 3 started on November 16, 2020, with $1000 USD in value and was invested into BTC, LTC, ETH, and ADA. The total amount of BTC value from the four coins has had a gain of 65% since the start. The USD fund value is up 308% since the beginning. We will hold these positions to see how well it does against our BTC-only portfolio. LTC is down -34% against BTC. ETH is up 157% against BTC since the start. ADA has a gain of 251% against BTC and 763% to USD.
BLWX Fund started on February 22, 2021. They all are assets we have profiled in the last few months, and we are interested in how they will perform in 2021 against BTC. BAT has a gain of 95% against BTC since the start; LINK is down -35%, WAVES is up 282%, XMR is up 10%. Overall, against BTC, the fund is up 88% and 42% against USD.
Overall, Bitcoin should be your first choice as an investment in crypto, though many digital assets can give you amazing gains if you manage your risk. As a long-term investor, we see it as our largest portfolio investment. If you are a day trader, there are many great assets to put on your watch list. Look through our previous newsletters to find some.
Madbyte does have its own token called MADX on the Fantom and Ethereum networks and under symbol Madbyte on the Waves network. The tokens are interchangeable on Madcapx.com.
Disclaimer: Nothing in this newsletter is intended to serve as financial advice. Therefore, do your own research and due diligence before applying any of the techniques highlighted in this post. Any risks or trades based on this newsletter are committed at your own risk.