GALA Token Down 20% as Co-Founders Sue Each Other - Tokenist

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• n August 31st, two co-founders of Gala Games, the play-to-earn (P2E) crypto gaming company, took their business disagreements to court. Filed in the Utah District Court, Eric Schiermeyer and Wright Thurston’s lawsuits against each other devalued their games’ native token, GALA, in the process.

• The current CEO of Gala Games, Eric Schiermeyer, believes that his co-founder, Wright Thurston, is having a conflict of interest. Namely, Thurston siphoned $130 million worth of GALA tokens in early 2021 on behalf of his investment firm True North United.

• On the same day at the same court, Thurston filed a lawsuit against Schiermeyer on behalf of his investment firm True North United Investments LLC. Thurston’s company also represents Blockchain Game Partners (BGP), to which he serves as director, on behalf of Gala Games investors.  Thurston’s allegations appear more severe, accusing Schiermeyer of “corporate waste, conversion, and unjust enrichment.” Specifically, Schiermeyer conducted elaborate schemes without going through proper company channels.

• With allegations so severe on both sides, it appears that Gala Games will unwind as a Web3 blockchain gaming platform. Whether Schiermeyer or Thurston is proven correct, Gala Games management is reminiscent of post-mortem FTX, showing a severe lack of governance and transparency.

• According to Polaris Market Research, blockchain gaming grew to a $5.41 billion market in 2022. Comparatively, the traditional video gaming market was $294.6 billion. Moreover, after much metaverse hype, big companies have turned away from the metaverse and shifted their focus to AI.