Rally, an Ethereum-based platform that mints “social tokens” for online creators to flex their crypto clout, last week raised over $22 million through a token sale on distribution platform CoinList.
Initiated by community vote, the RLY token sale garnered more than 40,000 participants, a record for CoinList, organizers Mike Zajko and Alex Topchishvili told CoinDesk. They said it was the first time CoinList conducted a sale for a liquid token.
The big numbers highlight how social tokens, which are cryptocurrencies that support online communities, are growing in prominence as a means for influencers – especially Twitch streamers – to connect with their fans. The RLY rally comes weeks after a wallet hack sent social tokens on rival platform Roll spiraling.
Rally lets influencers create fan engagement tokens that sometimes unlock loyalty perks, like behind-the-scenes access or limited edition swag. Most of Rally’s top “Creator Coins” are live-streaming gamers with the occasional musical act thrown in. The platform had 95 creators on board at press time.
It is unusual for a live protocol with a circulating supply to pursue a token sale; CoinList had never done it before. But Rally community members began debating the idea in late February and ultimately voted to hold the distribution event through CoinList.
Rally founder Kevin Chou told CoinDesk the project didn’t do the sale for the money. Rather, it was angling to raise its profile and boost the number of people personally involved.
“Really, very few people had heard about Rally” before the token sale, Chou said, pointing to Etherscan records that indicated just 1,500 prior token holders.
“The token sale has allowed us to add another 44,000 people to the project,” Chou said.