• Rally, a social token platform, has announced the closure of its sidechain operations due to lack of funding.
• Tokens on the Rally sidechain are not transferable to mainnet, meaning users will not have access to their crypto assets and NFTs once the site shuts down.
• This closure is due to the challenging year of 2022 that the entire crypto industry has experienced, owing to the fallout of Terra’s decentralized stablecoin UST.
Rally, a social token platform that allowed creators, media personalities, bands, and esports teams to launch social tokens to monetize their work, has announced that it will be closing its sidechain operations. This closure, which is due to a lack of funding, will mean that users will no longer be able to access their crypto assets and NFTs on the Rally sidechain.
The announcement was made in an email sent out on January 31, in which the company warned users that they may experience a degradation in services or it may become inoperable after that day. The project mentioned that the token assets are not transferable to the mainnet, meaning that users will not have access to their crypto tokens and NFTs once the site shuts down.
Rally’s closure is due to the challenging year of 2022 that the entire crypto industry has experienced. This includes the fallout of Terra’s decentralized stablecoin UST, which prompted a series of bankruptcies, including the implosion of major crypto lenders like Celisius and BlockFi, and even the collapse of cryptocurrency exchange FTX.
Rally’s closure is a troubling sign for the industry, as it highlights the difficulties that many projects are facing in the current environment. It is a reminder that projects need to be well-funded and have access to proper capital in order to remain afloat. It is also a reminder of the importance of diversifying investments, as relying solely on the crypto market can be a risky proposition.
For now, Rally’s closure serves as a cautionary tale for the industry, and a reminder of the need to be well-funded and diversified in order to remain in the market.