- THORChain DeFi platform paused BTC and ETH withdrawals.
- RUNE price plunged over 20% today as THORChain insolvency claims circulate.
- Network node operators voted to pause Lending and Savers Withdrawals.
As THORChain announced its decision to pause BTC and ETH withdrawals, its native token RUNE price plunged today. The platform’s official Telegram channel posts indicate the node operators voted to pause withdrawals to avoid insolvency risks. The deposits on THORChain have been turned off a year ago, which raises suspicions that the team predicted the risk it was getting into.
Though users cannot withdraw Lending and Savers programs at the time being, THORChain’s cross-chain swaps are fully functional. While the Lending program has BTC and ETH assets, its Saver’s program holds more cryptocurrencies. The team took a 90-day pause to come up with a restructuring plan to resolve debts.
THORChain is one of the well-established and renowned decentralized platforms. It added the Lending and Savers programs as experimental features. With the present pause of asset withdrawals, it is clear that these features are not working. Commenting on the same issue, Erik Voorhees posted on X stating,
“This is an important design principle that the DeFi ecosystem should learn from. The lesson is not to stop experimenting, it is to mitigate risks when untested, and “assume” failure. Double-down on adversarial thinking.”
Furthermore, he stated that the Thorchain DEX remains operational and cross-swaps are not interrupted. And, LPs can deposit and withdraw without any issues. Erik Voorhees showed his support for the platform amidst this critical time.
Thorchain Native Token RUNE Plunged 20%
As Thorchain suspended withdrawals and is on the verge of insolvency, its native token RUNE price plunged by over 20% today. RUNE token is trading at $2.43 at press time, with a market capitalization of $847.8 million. However, the 24-hour trading volume increased by a staggering 147%, probably caused by the increasing attention around the project.
Unlike the other insolvency incidents in crypto, Thorchain avoided the situation by pausing the withdrawal. However, this is just a temporary fix. The node operator team has bought some time by suspending withdrawals to solve the issue in the best-possible way.
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