Running on the networked Ethereum sidechain rally.io announced in a statement yesterday that it will cease its operations. The decision leaves users and creators’ funds on the chain, which could become “inoperable”.
In the announcement, Rally was designed as a digital fan club rather than an investment platform. Creators have helped create tokens that can be paid “digitally to tip and pay for services, products, exclusive content or other benefits … and also provide real value to their owners by offering special interaction opportunities with their creators.”
Koinfinans.com As we have reported, the Platform informed the founders in its e-mail that the activities will be stopped due to macroeconomic problems that cannot be overcome. As a result, tokens launched through Rally will essentially be lost and trapped on the abandoned chain. The email explains that “NFTs on the Rally sidechain cannot be transferred to the mainnet, so they will not be accessible when the site is down.”
Anticipating that there will be a reaction to the news on social media, the project quickly closed its Twitter account. The sudden announcement, combined with the lack of recourse to creators and token holders, has many labeled these actions as “rugpull”.
if you act fast, maybe you can still pay $321 before the shutdown to get “valuable founder advice” from @KevinChoupresumably on things like “how to pull off a $57M rugpull”
the bomb image is a little on the nose, though. pic.twitter.com/e4QMDJzAnD
NEWS CONTINUES BELOW— web3 is going just great (@web3isgreat) February 1, 2023
The “bubble” in the spring 2021 period when Rally raised $57 million social token was the trend around it. The concept promised to use web3 to revolutionize creator monetization, but that was due to the adoption of crypto by a much wider audience, many of whom fled during last year’s bear market.