According to emails sent to its community on the same day, the Ethereum (ETH)-based social token platform Rally announced that its sidechain would stop operating on January 31, and users would be unable to transfer their NFTs.
Its native token RLY fell approximately 10% following the announcement, to $0.0135.
The project likened its decision to the previous year’s difficulties, adding that “macro headwinds are too powerful to overcome in the present environment.”
The platform’s social media accounts were deactivated at the time of publication.
Rally’s community was abandoned
Rally team stated that they are investigating “whether we can build leaner web3 experiences and/or products on mainnet.” Nonetheless, a number of cryptocurrency community members have criticized Rally for abandoning its users with no way forward.
Chris Strub, one of the platform’s users, admitted to losing money and apologized to those who utilized the project based on his recommendation. Another user, John Rigler, opined that the platform was an attempt to “steal money.”
In the meantime, other social token projects have stepped in to help of the Rally community.
In 2021, Rally raised $57 million in a funding round after being founded in 2018. It received funding from Andreessen Horowitz and other venture capital firms.
Several creators, including musician BT and actress Felicia Day, had supported the platform.