Social token platform, Rally, has announced that it is ending its operations and discontinuing its Ethereum sidechain. This sudden move has raised concerns among its users, who are creators and fans holding Rally tokens. In an email sent out to its users, Rally warned that the NFTs on its sidechain would not be transferable to mainnet, and once the site shuts down, they would no longer be accessible.
The challenging year of 2022, combined with macro headwinds, has been cited as reasons for the shutdown by Rally. Despite raising $57 million from investors in 2021, the startup has not been able to overcome the current environment and continue its operations. The value of Rally’s token, RLY, has declined by 93% since January 31, 2022, according to Nansen.
It is a sad day for the crypto community, as another platform succumbs to the pressures of the market. The impact of this shutdown will be felt by many, and it is important for crypto enthusiasts to be aware of the risks involved in holding crypto assets on platforms that may not be sustainable in the long run.