• The infamous social token platform Rally.io is finally shutting down its Ethereum sidechain starting on January 31st.
• The social-focused NFT platform stated that it was shutting down the sidechain because of the state of the market.

Rally, a Social token platform on the Ethereum network emailed its community members on Tuesday and called it quits. The NFT platform stated that it was shutting down its sidechain operations because of the state of the market.

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 explained in the announcement.

According to Rally’s CEO, the sidechain was very expensive to maintain compared to all of the new layer-1 tech stacks that have launched recently.

The NFTs on the Rally sidechain are non-transferable to the mainnet as shutting down the sidechain, effectively destroys all of the digital assets it contains thus the NFTs are also not accessible.

The crypto winter did take a toll on multiple crypto firms with rampant bankruptcies and mass layoffs. Citing macro headwinds as the reason behind the shutdown of the sidechain angered the crypto community.

Rally, a social token platform built on the Ethereum blockchain, has announced its closure. The announcement was made on January 31 via an email sent to the Rally community. #Rally #ETH #NFT #Web3 #Blockchain pic.twitter.com/vi1Hw2scBF

— Without Walls ⟠ (@withoutwalls_) February 1, 2023

About Rally

Rally.io is an Ethereum-based platform for creators to launch social tokens. To that end, Rally grants creators the ability to launch their own “social tokens” – customizable cryptocurrencies that underpin their issuer’s entire online ecosystem.

Rally was founded in 2018 on the belief that the creator economies should involve multiple asset types that enable different forms of value and creative expression

Some of the more notable creators on Rally include actor and creator Felicia Day, musician BT, and LA Rams wide receiver Brandon Powell. The startup also managed to raise $57 million from investors in 2021.

RLY is a multi-functional ERC-20 governance token. The RLY token supply is capped at 15 billion, and the entire supply was minted during an RLY token generation event (TGE) in October 2022

RLY has been hovering on the lows since hitting an all-time high of around $1.40 in April 2021, losing more than 99% of its value. As of now, the token is trading at $0.0125, down by more than 16% over the past day.