Cryptocurrency exchange Coinbase has announced that it will not support the upcoming token airdrop for Gala Games' V2 token. The decision comes amid concerns about the legality of the airdrop and the potential risks associated with supporting it.

According to Coinbase, the airdrop has not been registered with the US Securities and Exchange Commission (SEC), which could put both the exchange and its customers at risk of legal and regulatory action. The decision not to support the airdrop was made in order to protect the interests of Coinbase's customers and to ensure compliance with applicable laws and regulations.

Gala Games, a blockchain-based gaming platform, had planned to distribute its V2 tokens to users who held its original GALA tokens. The airdrop was intended to reward early supporters of the platform and to help drive adoption of its new token.

While the decision not to support the airdrop may be disappointing for some users, it's important to remember that cryptocurrency exchanges have a responsibility to ensure compliance with applicable laws and regulations. Failure to do so could result in legal and regulatory action, which could have serious consequences for both the exchange and its customers.

(By Kate Irwin)