Rally’s RLY token tanks 10% as sidechain shuts down – severing users’ from their NFTs
The Rally Rally token drops 10% as the sidechain goes down, preventing users from accessing their NFTs.
The Rally blamed its decision on a difficult past year – “counter macroeconomic factors are too strong to be overcome in the current conditions.”
Ethereum (ETH)-based social token platform Rally said its sidechain will cease operations on January 31st and users will not be able to transfer their non-fungible tokens (NFTs), according to emails sent to its community on the same day.
After this news, his native RLY token fell by about 10% to $0.01353, according to Cryptooshala data.
The project blamed its decision on a difficult past year, adding that “counter macroeconomic factors are too great to be overcome in the current environment.”
The platform’s social media accounts have been deleted at the time of publication.
The Rally community left in a quandary
The Rally team said they are looking into “whether we can create more compact web interfaces and/or products on the mainnet.” However, several members of the crypto community have criticized Rally for leaving its users stranded and unable to move on.
One user Chris Strub disclosed he lost some money on the platform and apologized to those who used the project based on his approval. Another user John Rigler said he “assumed” that the platform was just “money extortion”.
Meanwhile, other social token projects supported stuck rally community.
The rally started in 2018, promotion $57 million in 2021 funding round. Venture capitalists such as Andreessen Horowitz supported him.
The platform has enjoyed the patronage of several creators, including BT musician and actress Felicia Day.
Credit : cryptoslate.com