The Ethereum NFT sidechain of the Rally social media platform has been disabled. The team cited the challenging market conditions as justification for the choice.
The Rally platform has come under fire in response to its decision to end the Ethereum NFT sidechain. The NFT platform, which focuses on social interaction, said it was closing the sidechain due to the market situation.
Users of the Rally site may generate social tokens for their preferred bands, teams, franchises, and other things. Rally CEO Rob Collier said that the sidechain was initially constructed in 2018 and was expensive to maintain. In an email to users, Rally provided the following explanation of choice:
As most of you are aware, 2022 was a challenging year not only for the platform but also for the entire crypto industry. 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.
Rally CEO Discusses Withdrawal Service Issues, NFT Sidechain Inaccessible with Website Shutting Down. Furthermore, Crypto Community Upset Over Sidechain Shutdown Due to Macro Headwinds, Jokingly Calls it a Rug Pull.
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Recent NFT resurgence prompts inquiries into Rally’s decision. The crypto bear market pressures companies but fails to convince the community.
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News triggers a steep drop in the RLY token’s value, a platform’s driving force. Currently, at $0.0136, it has fallen 96% from its all-time high of $1.40. Furthermore, The coin reached its pinnacle in 2021, experiencing a significant rally when the use of social tokens was on the rise. It once constituted a considerable chunk of that specialty.