Social Token Project Rally Shuts Ethereum Sidechain, Stranding Users’ Crypto Assets
Rally blamed its sidechain’s demise on "macro headwinds."
Social token platform Rally said Tuesday it is abandoning its Ethereum sidechain and warned users – creators and their communities of token-holding fans – their crypto assets may soon become stranded.
“Since NFTs on the Rally sidechain are not transferable to mainnet, these will not be accessible once the site shuts down,” Rally said in an email reviewed by CoinDesk. It further said the site “will no longer be supported” beyond Tuesday.
Rally cited the “challenging year” of 2022 and “macro headwinds” as “too overwhelming to overcome in the current environment.” The startup last raised $57 million from investors in 2021.
Rally’s token RLY has fallen 93% since Jan. 31. 2022, per data site Nansen. Its price was largely unchanged Tuesday.
Decrypt first broke the news of Rally’s demise.
The Rally team did not immediately respond to a request for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.