• Social token platform Rally has announced the closure of its sidechain operations due to a lack of funding.
• The project warned users that their crypto assets would become void as tokens on the Rally sidechain are not transferable to mainnet.
• The fallout of Terra’s decentralized stablecoin UST 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, a social token platform, has announced the closure of its sidechain operations due to a lack of funding. This announcement serves as a warning to users that their crypto assets will become void, as tokens on the Rally sidechain are not transferable to mainnet. Such a development signals a challenging year ahead for the entire crypto industry.
In 2021, Rally experienced a lack of funding, indicating a difficult year for the platform and the crypto industry as a whole. This lack of resources was due to the fallout of Terra’s decentralized stablecoin UST, which caused a series of bankruptcies across the industry. Major crypto lenders such as Celisius, BlockFi, and even cryptocurrency exchange FTX experienced massive losses as a result. The team at Rally worked tirelessly to try and find a solution to the problem, but the challenging macro headwinds proved too difficult to overcome.
Rally, founded in 2018, is a platform for creators, media personalities, bands, and esports teams to launch social tokens. These tokens provide a way for users to monetize their work, similar to platforms like Patreon. Fans and followers can purchase the Rally tokens launched by their favorite creators, offering various perks in return.
Unfortunately, with the closure of the sidechain, users will no longer be able to access their crypto tokens and NFTs. The site will become inoperable and users will not be able to transfer their assets to the mainnet. This could spell disaster for the industry, with the fate of Rally’s tokens and NFTs uncertain.
The closure of Rally’s sidechain serves as a cautionary tale for the entire crypto industry. The lack of funding and difficulties in navigating the macro headwinds has resulted in the shutdown of an entire platform, leaving users with nothing to show for their investments. With the future of crypto still uncertain, it’s important to exercise caution when investing in new platforms.
