{"id":824004,"date":"2025-02-03T07:12:32","date_gmt":"2025-02-03T13:12:32","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/03\/as-rune-tanks-a-further-45-overnight-can-thorchain-turn-its-fortunes-around\/"},"modified":"2025-02-03T07:12:32","modified_gmt":"2025-02-03T13:12:32","slug":"as-rune-tanks-a-further-45-overnight-can-thorchain-turn-its-fortunes-around","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/03\/as-rune-tanks-a-further-45-overnight-can-thorchain-turn-its-fortunes-around\/","title":{"rendered":"As RUNE tanks a further 45% overnight, can THORChain turn its fortunes around?"},"content":{"rendered":"
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\"As As RUNE tanks a further 45% overnight, can THORChain turn its fortunes around?<\/span> Christina Comben \u00b7<\/span> 23 hours ago<\/span> \u00b7 2 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n

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Community endorsement for converting debt to equity offers hope as RUNE faces its lowest point since 2020.<\/p>\n

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2 min read<\/span><\/p>\n

Updated:<\/span> Feb. 2, 2025 at 1:37 pm UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\"As<\/p>\n

Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n

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As RUNE holders awake to more bad news and a plummeting token price, with the passing proposal 6<\/a> by a super majority, can the troubled cross-chain swapping protocol \u201cget users liquid again?\u201d<\/p>\n

THORChain \u2018death spiral\u2019<\/h2>\n

On January 24, CryptoSlate reported that THORChain had suspended Bitcoin and Ethereum<\/a> withdrawals within its lending and savings programs after reports of a $199 million liability. As the community awaited a restructuring plan to address the protocol\u2019s debts and ensure its long-term viability, RUNE had dropped nearly 30% in value to $1.90. As of the time of writing, RUNE has fallen a further 45% and is currently trading at $1.08<\/a>, its lowest value since 2020.<\/p>\n

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\u201cIf only someone could have seen this coming,\u201d posted<\/a> Osmosis cofounder Sunny Aggarwal with the \u201cobviously\u201d rolling eyes emoji.<\/p>\n<\/blockquote>\n

Crypto educator @CosmosHoss commented<\/a>, \u201cLooks like [Aggarwal] called the THORChain RUNE death spiral long before it happened\u2014but most ignored him.\u201d<\/p>\n

Adding fuel to the fire, founder John-Paul (\u2018JP\u2019) Thorbjornsen has come under intense scrutiny<\/a> for potential conflicts of interest and activity managing multiple projects. Meanwhile, influential THORChain node and core contributor TB\u2019s private chat<\/a> was screenshot and shared on X revealing that despite working hard to save the protocol, he had sold all his RUNE.<\/p>\n

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\u201cI couldn\u2019t identify the next buyer and validators were going to be selling,\u201d he said, adding, \u201cThere\u2019s a bunch of validators that are going to sell. I\u2019m not going to stand there like a dumbass.\u201d<\/p>\n<\/blockquote>\n

Twenty-six more nodes have since followed suit (around 20% of the network), signaling intent to leave and corresponding to approximately 20 million RUNE potentially gearing up to dump on the market.<\/p>\n

A solution to \u2018get users liquid again\u2019<\/h2>\n

Despite its internal struggles and a growing clamor of naysayers\u2019 attempts at \u201cfudding it to zero<\/a>,\u201d many members of the THORChain community maintain their commitment. Thorbjornsen has repeatedly taken to X to assure his conviction, with posts<\/a> like \u201cGM, not going anywhere,\u201d and supporters like ShapeShift CEO and industry OG Erik Voorhees insists on remaining<\/a> an \u201cardent supporter.\u201d<\/p>\n

As the THORChain team works around the clock to turn the tide of fortune of the troubled protocol, the community unanimously voted in favor of a proposal to \u2018get users liquid again\u2019 and convert defaulted debt to $TCY equity with no private raise. \u201cProposal 6 passed by super-majority. Nodes stepped in to provide certainty and a way forward,\u201d posted<\/a> Thorbjornsen.<\/p>\n

The proposal suggests distributing TCY to affected users with 10% of fees paid out in RUNE to TCY holders in perpetuity. This plan aims to make users whole, increase capital efficiency, and attract new liquidity to the protocol. By writing off the debt and rewarding nodes and DLPs that stay with the protocol, it aims to make THORChain \u201cgreat and boring again.\u201d<\/p>\n

The coming days and weeks will reveal how THORChain navigates this critical time\u2014and whether it can avoid dropping into the abyss of failed crypto projects.<\/p>\n

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\"Blocscale\"<\/a><\/p>\n<\/div>\n

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Latest Press Releases<\/h5>\n<\/header>\n<\/div>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Christina Comben<\/p>\n","protected":false},"excerpt":{"rendered":"

As RUNE tanks a further 45% overnight, can THORChain turn its fortunes around? Christina Comben \u00b7 23 hours ago \u00b7 2 min read Community endorsement for converting debt to equity offers hope as RUNE faces its lowest point since 2020. 2 min read Updated: Feb. 2, 2025 at 1:37 pm UTC Cover art\/illustration via CryptoSlate.<\/p>\n","protected":false},"author":1,"featured_media":824005,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22569,2422],"tags":[],"class_list":{"0":"post-824004","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-further","8":"category-tanks"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/824004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=824004"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/824004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/824005"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=824004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=824004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=824004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}