Social Token Platform ‘Rally’ Shuts Down Sidechain, Native Token RLY Plunges 10%
01 Februar 2023 - 05:00PM
NEWSBTC
Social token platform ‘Rally’ announced on January 31 the shutdown
of its sidechain blockchain network, meaning that users would not
be able to access non-fungible tokens (NFTs) on its sidechain.
Rally communicated the shocking message to its users via email that
said the Rally sidechain would start winding down on Tuesday,
January 31, the same day the firm sent the email. Rally Close Down
Sidechain Amid Difficult Market Conditions Explaining the reason
behind the unusual move, Rally cities 2022 has been a difficult
year. It said the year was not only challenging for the platform
but also for the entire cryptocurrency sector. Related Reading:
Cardano Leads Development With Unique Sidechains And Toolkits Rally
said although its team made attempts to create a new path for the
business continuation, the firm has been unable to overcome the
ongoing challenges and negative macroeconomic factors that began
last year. Rally CEO Rob Collier explained that they would start
winding down the platform immediately because of a lack of support
at work. The CEO admitted that funding was the major obstacle for
the company. He said the firm developed its sidechain in 2018, but
the mainnet has been extremely expensive to maintain compared to
all of the new layer-1 blockchain tech stacks that the firm
recently launched. Rally said the sidechain is no longer supported,
and therefore, users may experience a decline in NFT services or
may soon become inaccessible. Rally network is an Ethereum-based
platform that enables creators to launch their social tokens. It
allows musicians, team sports, and personalities to engage with and
monetize their independent communities through direct engagements
on the platform. Rally has become the latest victim of the ongoing
crypto winter, which has so far led several crypto firms to
announce bankruptcy protection and impose massive layoffs. The new
year started with several challenges brought forward by the
previous one. The crypto winter is still causing troubles and has
shown no signs of slowing down. Over the past months, there have
been cases of job cuts, companies announcing losses, and regulators
heightening their oversights. Several adverse crypto events have
defined the beginning of 2023, with crypto lending firm Genesis
laying off 30% of its workforce, crypto exchange Huobi cutting 20%
of its workers, and crypto-focused bank Silvergate Capital Corp.
letting 40% of its staff go. Rally price action Following the
announcement, the value of the native token RLY went down by about
10% to $0.01353. At the time of writing, Rally trades at $0.012498.
Related Reading: Blockstream CEO Adam Back: How Bitcoin Sidechains
Could Destroy Altcoins The token is down 17.09% in the last 24
hours, with a trading volume of $9,342,835. Its market cap sits at
$58,222,590, and the token is currently ranked number 354 amongst
all cryptocurrencies, according to Coinmarketcap. RLY is currently
down 28.62% from its 7-day record high of $0.01812. Perhaps, this
has been triggered by the current slight bearish sentiment in the
market. Featured image from Unsplash, Chart from TradingView
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