Rally said the current macro environment is too daunting to overcome by announcing its closure.
On Tuesday, January 31, social token platform Rally announced that it would be shutting down the Ethereum sidechain amid market headwinds. This Rally announcement came via email to the community.
Rally added that it is becoming “too overwhelming to overcome in the current environment.” Furthermore, the social firm NFT has also warned users, creators and its community of token fans that their crypto assets could soon be stranded.
The social platform added that since the NFTs on the Rally sidechain are non-transferable, they will not be accessible after the website is closed. Explaining this development, Rally noted:
“As most of you know, 2022 was a challenging year not only for the platform, but also for the entire cryptocurrency industry. The team has worked tirelessly to try and find a way forward, however the macroeconomic challenges and hurdles are too daunting to overcome in the current environment.”
Rally.io was an Ethereum-based platform for creators to launch their social tokens. It allowed bands, social media personalities, and esports teams to engage and monetize with their communities. during the 2021 bull run, Rally raised a total of $57 million from investors. Some of the popular and notable creators had become part of the Rally platform.
Rally Token Withdrawals Face Headwinds
Rally encouraged creators to recruit their fans and support them by purchasing Rally tokens. In return, they would reward the holders with various perks. However, the ability to withdraw rally tokens was interrupted last month when users began criticizing the program on Twitter. Speaking to Decrypt, Rally CEO Rob Collier said funding was the key issue. He aggregate:
“We will start shutting down the platform as of today due to a lack of ongoing support. The Rally sidechain, built in 2018, was very expensive to maintain compared to all the new Tier 1 tech stacks that have been released recently. We experienced an outage in withdrawal services in August due to a lack of third party support. However, from November 1 to January 24, users have been able to withdraw all their assets. We gave several notices to support Rally users in this regard.”
After peaking at $1.38 in April 2021, the underlying RLY token has continued to fall ever since. The RLY token price plunged another 93% after yesterday’s announcement.
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Bhushan is a FinTech enthusiast and has a good knack for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continuously in a learning process and stays motivated by sharing the knowledge he has acquired. In his spare time, he reads thrillers and sometimes explores his culinary skills.
