Rally’s RLY token tanks 10% as sidechain shuts down severing users’ from their NFTs

Ethereum-based (ETH) social token platform Rally said its sidechain will cease operations on Jan. 31 and users will be forced to transfer non-fungible tokens (NFTs), according to an email sent to the community the same day. said it wouldn’t work.

Following this news, its native token, RLY, dropped about 10% to $.0.01353, according to crypto slate data.

The project blamed its decision on a difficult last year, adding that “the current environment presents too many macro headwinds to overcome.”

The platform’s social media accounts have been removed at time of press.

Larry’s Community Left Behind

The Rally team said they are looking at “whether we can build leaner web3 experiences and products on the mainnet.” However, some members of the cryptocurrency community have criticized Rally for leaving users stranded, with no way forward.

1 user Chris Strub clearly He lost some money to the platform and apologized to those who used the project on his endorsement. Another user John Rigler Said He “speculated” that the platform was just a “cash earner.”

On the other hand, other social token projects are Supported A stranded rally community.

Rally was launched in 2018, increase $57 million in 2021 funding round. VCs like Andreessen Horowitz backed it.

The platform was favored by multiple creators, including musician BT and actor Felicia Day.