On Tuesday, an Ethereum-based social token platform, Rally, revealed that it would be halting its operations. The developer behind the project announced the news through an email sent to the Rally community saying that the project would shut down Today.
But why did the Rally developer make this tough decision? in the announcement, Rally cited that last year’s crypto winter caused troubles to the platform and that the team has, over time, worked to find a path forward, but the macro challenges have been overwhelming to overcome.
Rob Collier, Rally CEO, said that lack of funding is another factor leading to the shutdown. He claimed the Rally sidechain, which was developed in 2018, has been more expensive to maintain than all the recently launched new layer-1 tech stacks.
How Rally Platform Worked
Before closing down, the Rally platform was running on the Ethereum blockchain. It enabled creators to make social tokens that allowed various celebrities to monetize their fanbase. Some of the notable creators on the platform included music artist BT and Felicia Day, a creator and actor.
Also read:Creators encouraged their fans to show them support by buying their rally tokens in return for several perks. However, in August 2022, the platform users could not withdraw their tokens, and Rally began to receive backlash.
On January 25, Collier said that the interruption to withdrawal services resulted from an absence of third-party support. However, he reported that from November 2 to January 24, all rally users have been withdrawing their tokens seamlessly. It is worth noting that the RLY token has traded at $0.012 since last October.
Rally Says NFTs on the Sidechain are Untransferable
According to Rally’s announcement, the NFTs hosted on the Rally sidechain will no longer be supported once it shuts down the chain. In addition, collectors seeking to transfer their NFTs from the sidechain may be in for a rude shock as the Rally developer revealed that those NFTs were not transferable to another chain.
Despite the sudden shutdown, Rally promises to continue to build other web3 projects that empower creators. The social token platform explains that it is trying to explore if it can create better web3 experiences on Ethereum mainnet but acknowledges that they’re several factors that need to be considered for that to happen.
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