Based on Ethereum (ETHSocial token platform Rally said its sidechain would shut down operations on January 31 and users would not be able 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 about 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 removed at press time.
Rally community left stranded
The Rally team said it was exploring “whether we can create more efficient web3 experiences and/or products on the mainnet.” However, several members of the crypto community have criticized Rally for leaving its users stranded with no way forward.
A user Chris Strub revealed he lost some money on the platform and apologized to those who used the project based on his endorsement. Another user John Rigler saying he “assumed” that the platform was just a “cash grab”.
Meanwhile, other social token projects have supported Rally community stranded.
Rally was launched in 2018, lifting $57 million in a 2021 funding round. Venture capitalists like Andreessen Horowitz backed him.
The platform was sponsored by various creators, including musician BT and actress Felicia Day.
