Coinbase-Backed Crypto Asset Surges 160% in Just One Day Despite Recent Shutdown of Its Sidechain

A Coinbase-backed crypto asset briefly spiked by 166% on Wednesday after the project unveiled its treasury holdings and plans for the future.

RLY Network (RLY), an ecosystem of on-chain consumer apps, shot up from trading around $0.015 on Wednesday all the way to a high of around $0.04 later that day.

The 276th-ranked crypto asset by market cap has since partially retraced and is trading around $0.0224 at time of writing, though that still represents a 50% increase from its initial Wednesday price.

The project weathered controversy earlier this year when it announced in late January that its Ethereum (ETH) sidechain, RallyIO, was shutting down.

On Wednesday, however, RLY Network sought to clarify the project’s overall project’s future in a tweet thread.

“The RLY Network Association was created & voted by the community to assist in governance for the overall ecosystem. The focus of RLY Network Association continues to be the proliferation of the RLY community and ecosystem including the existing protocol, token, & new initiatives.

RallyIO was one application of many being built on the RLY protocol, and their shutdown doesn’t affect or change the viability of the overall ecosystem. Financially, the community treasury has significant funds to continue to innovate and support the ecosystem.

There are more than 20MM USDC and more than 7B RLY in the treasury owned by the community The primary wallets can be found at: 0xe75ed5295c13d224036feb6439db7539fe6d7ce8 and 0x75f4BD3A503f23450Ed9e8dABDAFDE6288af2c9b.”

The RLY Network Association says it plans to release new additions to the RLY open-source software to support the project’s ecosystem, including launches on public blockchains.

Generated Image: Midjourney