Social Token Platform Rally Shutting Down

Rally, a social token platform on the Ethereum network, announced that it was calling it quits on Tuesday. The news came via an email to the Rally community saying that the Rally sidechain would be sunsetted on January 31—the same day the email was sent.

“As most of you are aware, 2022 was a challenging year not only for the platform, but also for the entire crypto industry,” Rally said in the announcement. “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.”

Launched in 2018, Rally.io is an Ethereum-based platform for creators to launch social tokens, which lets social media personalities, bands, and esports teams engage with and monetize their communities. Notable creators on Rally include actor and creator Felicia Day, musician BT, and LA Rams wide receiver Brandon Powell.

So instead of making a Patreon to support what I do online, I’ve decided to made a creator coin called GEEX! https://t.co/A68n1FSpKP Each week a limited number of signed photos, podcast shoutouts, video gifts and more will be avail here for peeps! But there’s more! (THREAD 1/4) pic.twitter.com/Yt1Z9iGpmf

— Felicia Day (@feliciaday) September 23, 2021

Creators were encouraged to enlist their fans and followers to support them by purchasing their Rally tokens, rewarding holders with various perks. The underlying RLY token value peaked at $1.38 in April 2021 but declined since. Last August, withdrawals were halted, and RLY has been trading at around $0.01 since October 2022.

The Rally.io fan token page for Jeremiah Owyang, Chief Marketing Officer of the RLY Network Association.

Rally says that the decision to shut down the sidechain means that the NFTs hosted there will no longer be supported, warning collectors that they may experience “a degradation in services” and that NFTs may not work.

In January 2022, SuperLayer, the venture studio from the co-founders of Rally, announced plans to move to the rival Solana blockchain. The announcement came after the RLY Network Association launched a RLY token on Solana.

Collectors looking to transfer their assets off the Rally sidechain may be out of luck. Rally said in its email the NFTs on the Rally sidechain are not transferable to the Ethereum mainnet.

As a result many if the creators and users who once had hundreds of thousands to millions in value, their ecosystems have been reduced to zero and they have been incouraged to go to a Decentralized alternative.

— Terence Brumfield (@BigBrum_) November 15, 2022

Despite this turn of events, Rally says that it has not given up on its mission of empowering creators and communities with web3 experiences.

“Indeed, the Rally sidechain was the beginning of your web3 journey, not the destination,” they said. “It is with this spirit that we are exploring whether we can build leaner web3 experiences and/or products on mainnet, however there are a number of factors that need to happen to make this a reality.”

Decrypt reached out to Rally for comment but has yet to hear back.

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Source: https://decrypt.co/120285/social-token-platform-rally-shutting-down