The truth about GALA and Mirandus NFTs



In this video I take a look at the GALA token and Mirandus NFTs from an investor’s perspective.

Recently there has been a big influx of new investors buying into popular crypto and NFT games (aka play-to-earn) after the wild success of Axie Infinity.

Gala Games has emerged as one of the leaders in this new movement, and it’s not difficult to see why they’ve become so popular. First, they’re led by Eric Schiermeyer, who was one of the co-founders of Zynga, the company behind Farmville and other popular Facebook and mobile games. They’re also bringing in brand name investors and are planning to release dozens of games during the next few years. But what’s really exciting is their focus on blockchain games, as well as their decision to decentralize much of the decision making behind the company.

And today people are investing in Gala Games primarily through their GALA token or through the NFTs from the games themselves (Mirandus NFTs being the most popular). However, personally I’m seeing some cracks in the investment thesis. Specifically:

1) GALA is primarily distributed to people who purchase “Node” licenses where the receive daily GALA rewards. Today a Node costs $12,000, and there’s no guarantee that you’ll ever be able to resell it. Based on the current rewards, it would take more than 2 years to even break even (probably more than 3), which means you’re committing to the network for the long run. This wouldn’t be a terrible thing if you expected the GALA token to moonshot, however…

2) GALA doesn’t capture value from the game portfolio as much as other NFT coins do. Today it’s only a payment token, which is a type of utility token that was popular a few years ago but which has been largely left behind because it doesn’t reliably lead to a larger market cap. This is because there are no real incentives to hold the token; GALA doesn’t have staking, they don’t burn tokens and they don’t do buybacks (something we see in Illuvium, Axie Infinity *soon*, OMI, and Enjin). Now maybe the team could add utility into the token to increase ROI, but…

3) The GALA team has unequivocally stated that GALA should not be seen as an investment, and that they won’t prioritize decisions to improve its value. In the video I discuss many examples of how this is likely more than just talk – for example, they aren’t even working towards getting the token on major exchanges. With this in mind there’s no good reason to believe that they’ll work towards changing the current system so that GALA captures a lot more of the value from their games.

That leaves NFTs as the other viable option, but in this video I discuss how far Mirandus is from launching, which makes it incredibly risky to pick up some of their super expensive NFTs at this stage (some cost millions).

The team has the ability to change the story and to make GALA a token worth buying, and in the video I discuss some of the ways they can do that. But for now, it doesn’t fit something that I would personally buy.

Follow me on twitter: https://twitter.com/GiancarloChaux

Be my friend on BitClout: https://bitclout.com/u/giancarlo_

Articles on the high velocity problem:
https://unboundedcapital.com/blog/2019/12/9/more-on-token-velocity
https://multicoin.capital/2017/12/08/understanding-token-velocity/

0:00 Intro
1:12 why people are HYPED on Gala Games
2:42 investing in the GALA token
3:30 $GALA tokenomics
4:05 GALA Nodes: how much money can you make
6:14 does GALA have moon potential?
8:17 the main issue with GALA as a payment token
9:40 why the team might not care about GALA’s price
11:20 examples of Gala being “anti-investor”
12:16 my thoughts on the GALA market cap
12:47 why Mirandus could be awesome
13:18 when will Mirandus come out? (big concern)

source
#truth #GALA #Mirandus #NFTs

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