Rally indicated that 2022 was a difficult year for the platform and the broader crypto sector.
The tokens were created to incentivize supporters of creators to show their appreciation.
The Ethereum-based social token platform Rally announced its closure on Tuesday. The Rally sidechain’s shutdown was announced in an email delivered to the Rally community on January 31st.
Rally indicated that 2022 was a difficult year for the platform and the broader crypto sector. Despite the team’s best efforts, “the challenges and macro headwinds are too overwhelming to overcome in the current environment.”
Rally CEO Rob Collier stated:
“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.”
Effects of Prolonged Crypto Winter
Social media stars, musicians, and esports teams may interact with and make money from their fan bases by using Rally.io, a platform built on Ethereum allowing artists to create social tokens. Popular figures such as actress and creator Felicia Day, singer BT, and Los Angeles Rams wide receiver Brandon Powell are all creators of Rally.
Moreover, Rally tokens were created to incentivize supporters of creators to show their appreciation by acquiring these tokens. However, consumers started complaining about the programme on Twitter when they were unable to withdraw them.
The value of the underlying RLY token has decreased since it hit an all-time high of $1.38 in April 2021. RLY has been trading at a price of $0.001 per share consistently since October 2022. The prolonged crypto winter has forced many firms to shut its door or announce mass layoffs. However starting this New Year, the market seems to be bullish with the price of Bitcoin swirling around the $23k mark.