The Rally social platform has shut down its Ethereum NFT sidechain due to tough market conditions.
The sidechain, which allowed users to create social tokens, was built in 2018 but was “expensive to maintain” according to the CEO.
In an email sent to users, Rally explained that the challenges and macro headwinds in the crypto industry were too overwhelming to overcome.
The shutdown caused a disruption in withdrawal services, making it difficult for users to access their NFTs and the NFTs cannot be transferred to the mainnet.
The closure of the website and the decision to shut down the sidechain due to macro headwinds has drawn criticism from the crypto community. The recent resurgence of NFTs has also raised questions about the timing of the shutdown.
