Rally’s RLY token tanks 10% as sidechain shuts down – severing users’ from their NFTs
Rally blamed its decision on the challenging past year — the "macro headwinds are too overwhelming to overcome in the current environment."
Ethereum-based (ETH) social token platform Rally said its sidechain would shutter operations on Jan. 31, and users would be unable to transfer their non-fungible tokens (NFTs), according to emails sent to its community on the same day.
Following the news, its native token RLY fell by roughly 10% to $0.01353, according to CryptoSlate data.
The project blamed its decision on the challenging past year, adding that the “macro headwinds are too overwhelming to overcome in the current environment.”
The platform’s social media accounts were deleted as of press time.
Rally’s community was left stranded
The Rally team said it was exploring “whether we can build leaner web3 experiences and/or products on mainnet.” However, several crypto community members have criticized Rally for leaving its users stranded and with no way forward.
One user Chris Strub revealed he lost some money to the platform and apologized to those who used the project based on his endorsement. Another user John Rigler said he “surmised” that the platform was just a “cash grab.”
Meanwhile, other social token projects have supported the stranded Rally community.
Rally was launched in 2018, raising $57 million in a 2021 funding round. VCs like Andreessen Horowitz backed it.
The platform had enjoyed patronage from several creators, including musician BT and actor Felicia Day.