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Nelson
@ellieiiii
In 2023, Rally, an Ethereum-based social token platform, shut down its sidechain, stranding creators' and users' assets, including NFTs, which were non-transferable to the mainnet. Launched in 2021, Rally enabled creators like Felicia Day to monetize communities through social tokens. However, market headwinds and high maintenance costs led to its abrupt closure. Users faced significant losses as ecosystems worth hundreds of thousands collapsed. Critics, including crypto VC Mike Dudas, labeled it a "rug pull," alleging creators cashed out, crashing token values. Rally cited a challenging crypto market and lack of third-party support, but its failure to provide asset transfer options left users stranded, sparking backlash on social media. The case highlights risks of centralized sidechains in decentralized ecosystems.
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