GALA-USD: Beware as Blockchain Gaming Site NFT May Underdeliver

Gala (GALA USD) is an interesting token to watch for cryptocurrency enthusiasts. Gala was created by Eric Schiermeyer, co-founder of Zynga (NASDAQ:ZNGA). The underlying vision is to create blockchain non-fungible token (NFT) games that people actually want to play.

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So, let’s take a look at one of these games – Legacy – and try to understand better.

business simulator

Legacy is a business simulation game where players compete to make their business the strongest. Players design and manufacture products, then trade and sell them for profit.

What immediately strikes me about the game is that the process of developing your business is quite vague. It appears that players design and create products which are then produced in factories they have designed. Then, through a vague process, you outsmart and outsell your competitors in order to become a better businessperson. The principle is that the sharper your business acumen, the more you will earn.

The problem is that everything seems vague and preliminary. If the goal of the game is to create a real economy in a digital sphere, players must understand the details of how the money will actually be generated. Well, at least for gamers and not for Legacy, because it’s very clear how the game makes money.

Sell ​​digital land

Aside from the vague in-game economy mechanics, the other thing that stands out is what the game expects of you: i.e. buy land.

The game is coming to London. Participants can purchase virtual real estate deeds using GALA-USD tokens. Currently, three property types remain of the original six.

The two largest and most expensive property types, conglomerate deeds and heart of London, are sold out. Here’s what might surprise some readers: The heart of the London act was a single act that sold for 2.953 million GALA-USD. A single GALA is currently trading at 30 cents. I don’t know when this act was sold, but it could have sold for around $886,000. These are real US dollars. The deeds of the conglomerate have also made Legacy a nice coin. 60 of them sold for 406,007 GALA-USD each. That’s $121,800 each, meaning Legacy recorded $7.3 million in revenue from the sale of those acts.

Interested in GALA-USD?

You and I can always run and gobble up the deed of business and corporations. There are a handful of companies and several dozen businesses still up for grabs. These are thefts relating to the equivalent of $20,000 and $60,000 each.

Remember though that this is a game that is still in development. I can’t help but think that some people are going to be seriously heartbroken by these purchases.

I’m sure there are gamers out there who have invested a large portion of their life savings in a $120,000 conglomerate deed thinking they will be able to earn real money from buying digital goods. This is an extremely risky proposition for a game still in development.

Common denominator

This is a very common theme across the gala games website. Games in development that you can spend real money on in-app purchases rub me the wrong way. I can’t help feeling that something is wrong.

Legacy is developed by 22 cans which is directed by Peter Molyneaux. Molyneaux became infamous for over-promising and enthusiastic descriptions of games in development during his career.

I couldn’t help but wonder if something similar was happening with Legacy, in particular, within Gala Games’ lineup. If that turns out to be true, time will tell. But I couldn’t help thinking that all games were money grabs to some degree.

I feel like the platform is saying pay now for our in-game digital goods and artificial scarcity and we’ll provide real-life games and money-making mechanics later.

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Alex Sirois is an independent contributor to InvestorPlace whose personal equity investing style focuses on long-term, buy-and-hold stock choices to build wealth. Having worked in multiple industries, from e-commerce to translation to education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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