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Reading: Second Terra Incident? Giant Altcoin Has Already Crashed 30 Percent!
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EdaFace Newsfeed > Latest News > Altcoin News > Second Terra Incident? Giant Altcoin Has Already Crashed 30 Percent!
Altcoin News

Second Terra Incident? Giant Altcoin Has Already Crashed 30 Percent!

vitalclick
Last updated: January 24, 2025 8:05 am
1 hour ago
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THORChain (RUNE) temporarily suspended THORFi services due to financial uncertainties. The protocol entered into a 90-day restructuring process to resolve emerging debt problems and payment obligations.

Financial Crisis That Hit THORChainThe Problem Originates from Bitcoin Loans

Financial Crisis That Hit THORChain

THORChain, known for its cross-chain exchange services in the cryptocurrency world, has been facing serious financial problems recently. THORFi The accumulated debt burden protocol of the “Savings and Lending” programs offered within the scope of the program forced these services to be suspended. Credit transactions were temporarily suspended while trade transactions and clearing services continued. The decision was implemented through a vote taken through validator nodes.

Altcoin RUNE

Mainnet presence of the protocol RUNEFollowing these developments, it lost more than 30 percent of its value in the last 24 hours. Experts stated that this situation created a loss of confidence in the market. Dragonfly Capital partner Haseeb Qureshidescribed the situation as a “bankruptcy freeze” and stated that the protocol suffered from a serious liquidity shortage.

The Problem Originates from Bitcoin Loans

The debt burden of the protocol is high, especially when purchased at low prices. Bitcoin $101,713.0 due to their loans. RUNE was minted due to the rise in the price of Bitcoin, but this move made the debt burden more complicated. Insufficient liquidations accelerated the altcoin’s loss of value, straining the protocol’s payment capacity. The community is concerned that this could have a knock-on effect similar to the Terra/Luna collapse.



Synthetic assets based on THORChain’s collateral system were also put under the spotlight in this process. Bitcoin And Ethereum $3,197.8 These derivative assets representing cryptocurrencies such as RUNE are supported by RUNE. The sharp decline in RUNE’s price also threatens the value of these assets. Community members claim that THORChain lacks the ability to pay its debts.

The community and validators are working on new economic proposals to re-stabilize the protocol. Founder of THORChain John-Paul Thorbjornsenstated that the system would recover after the restructuring. Thorbjornsen said, “The protocol has the capacity to easily pay the debts after restructuring.”



Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.

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