#TrendingTopic
$RUNE Rune Price Drops as Thorchain Suspends Services for 90 Days to Address Financial Issues
Cross-chain exchange protocol THORChain has suspended THORFi services due to financial uncertainty surrounding insolvency allegations.
ThorChain founder J.P. Thorbjornsen and the development team have decided to suspend THORFi services as part of a 90-day “restructuring” plan to alleviate problems with its Savings and Lending programs, which appear to have accumulated a lot of non-performing debt.
ThorChain is a decentralized liquidity protocol that facilitates cross-chain asset exchanges while eliminating the need for wrapped tokens or centralized exchanges. The platform allows traders to exchange native assets such as Bitcoin, Ethereum, and more directly on one platform, using the native RUNE token to facilitate transactions and secure liquidity pools.
Why THORChain Suspended THORFi Services
While trading features such as swaps remain available to users, lending operations within THORFi have been suspended.
The suspension of lending is an active attempt to prevent a mass exit that could spell the platform’s demise. Haseeb Qureshi, managing partner at Dragonfly, likened the situation to a “bankruptcy freeze,” highlighting the severe liquidity crisis.
As a result, there are now concerns about THORChain's ability to help lenders in the event of large-scale repayments due to the lack of Bitcoin reserves in THORFi's lending pools.
The 90-day restructuring initiative was implemented through validator nodes, and in response, the price of RUNE has fallen by more than 30% in the last 24 hours.
RUNE's Market Value Is Under Threat
The market price of RUNE has dropped for many reasons, but the latest one is the decision by THORChain management to suspend lending operations.
More interesting news — subscribe • I will be grateful for tips
