Ethereum Sidechain Announces End After Raising Millions And Disappears With Client Assets

Ethereum Sidechain Announces End After Raising Millions And Disappears With Client Assets

A platform that created an Ethereum sidechain announced to users the end of its existence, with NFTs created in the environment all lost forever. In 2021, Rally raised nearly $60 million from investors to launch the product.

Among the investors are large companies such as a16z, a group that has already invested in OpenSea, SpaceX, Rappi and other well-known brands in the world.

Other investors on the platform included Coinbase Ventures, Kevin Lin (co-founder of Twitch), Steven Chiang (EVP of Warner Bros.).

Customers of the service came to know about the sudden problem via email, with the company saying it will gradually suspend its operations.

Rally is one of the projects in the portfolio of companies in which a16z has invested
Rally is one of the projects in a portfolio of companies in which a16z has invested. Reproduction.

Platform created on Ethereum sidechain warns users will lose their collectibles in NFTs

From the social networks of the Rally, Twitter has already been excluded, leaving only Instagram as a reminder for investors who have invested time and money in the project.

With the advent of Web3, community building became an opportunity. In the case of Rally, the focus was on creating green NFTs.

However, the dream came to an end last Tuesday (1/31) when the platform sent an email commenting on the issues.

In the material, it is clear that the NFTs created in recent years will be lost with the end of a site, even if the collectibles are on an Ethereum sidechain.

“To the Rally Community: We regret to announce that the Rally sidechain will begin to disappear after today. This means that as of today the site will no longer be supported and you may experience a degradation in services or simply go down. Since the NFTs on the Rally sidechain are not transferable to the mainnet, they are also inaccessible when the site is shut down.

Email sent by Rally announcing the demise of Ethereum sidechain
Email sent by Rally announcing the end. Reproduction.

In 2021, the sidechain raised $57 million according to TubeFilter, but it couldn’t last even two years.

Former side Roberto Carlos and band Megadeth are among the artists who will lose NFTs

As an Ethereum sidechain that enabled the creation of tokens in its protocol, Rally attracted many artists from around the world.

For example, former left-back five-time champion Roberto Carlos was one who created his own collection. According to Livecoins, the player continues to display a link to his NFT collection on his Twitter even as the end of the collection is imminent.

Roberto Carlos' Twitter profile shows a link to the NFT Collection which should be deactivated soon
Roberto Carlos’ Twitter profile displays a link to the NFT collection which should be deactivated soon. Reproduction.

Among the other content creators are great bands like MegaDeth, DJ John Askew, among others.

“Rally” is coming to an end

Still under the damaging effects of the 2022 cryptocurrency market collapse, yet another platform is coming to an end.

This is because by attracting celebrities, making big investments and reaching the end, the Rally platform shows a bad side of the cryptocurrency market as well as the dangers of investing in NFTs.

The email sent to investors was shared by investors who regretted the time they had invested in the platform.

“For those wondering, the Rally is officially closed today. The lesson has been learned by all of us who have invested time and money and built a community on this creator platform.”

Source: Live Coins