Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Rally said that the current macro environment is too overwhelming to overcome while announcing its shutdown.
On Tuesday, January 31, social token platform Rally announced that they would be shutting down the Ethereum sidechain amid the market headwinds. This announcement from Rally came through an email to the community.
Rally added that it is getting “too overwhelming to overcome in the current environment”. Besides, the social NFT firm also warned users, creators, and its community of token-holding fans that their crypto assets might soon become stranded.
The social platform added that since NFTs on the Rally sidechain aren’t transferable, they won’t be accessible after the website shuts down. Explaining this development, Rally noted:
“As most of you are aware, 2022 was a challenging year not only for the platform, but also for the entire crypto industry. The team has worked relentlessly to try to find a path forward, however, the challenges and macro headwinds are too overwhelming 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, as well as 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 the creators to enlist their fans and support them by purchasing the Rally tokens. In return, they would reward the holders with several perks. However, the ability to withdraw rally tokens was interrupted last month as users started to rail against the program on Twitter. Speaking to Decrypt, Rally CEO Rob Collier said that funding was the key problem. He added:
“We will begin to sunset the platform as of today’s date due to lack of ongoing support. The Rally sidechain, built in 2018, was very expensive to maintain compared to all of the new layer-1 tech stacks that have launched recently. We experienced a disruption to withdrawal services in August due to a lack of third-party support. However, from November 1 until January 24, users have been able to withdraw all of their assets. We gave various notices to support Rally users in this regard.”
After peaking at a high of $1.38 back in April 2021, the underlying RLY token has continued to decline since. The RLY token price tanked another 93% after yesterday’s announcement.