Why did OdinSwap and Valhalla cease operations? How to ensure the safety of user funds?

On February 20, Bitcoin network rune platforms OdinSwap and Valhalla will be suspended for operations. Due to decline in transactions, competition, etc., users can provide 2.28 prerequisites.

In the cryptocurrency field, a recent news has attracted widespread attention. On February 20, according to official news, OdinSwap, the Bitcoin network rune DEX platform, announced that it will gradually stop operations as well as Valhalla, the rune startup platform.

This news has undoubtedly caused ripples in the relevant user groups and the entire cryptocurrency market. In-depth exploration of the reasons behind it and understanding the safeguards for user funds are particularly important for investors and followers.

As the leader of cryptocurrencies, Bitcoin's network status has a profound impact on various applications and platforms based on it. On February 15, Bitcoin network transaction volume (7-day moving average) had dropped to 330,000 transactions, hovering around a 12-month low, a 55% drop from the peak of 730,000 transactions in the network's history.

Such a significant decline in transaction volume means that the activity of the entire Bitcoin network is decreasing. This has brought a fatal blow to OdinSwap and Valhalla, which rely on the Bitcoin network ecosystem.

The reduction in transaction volume directly leads to a significant decline in revenue sources such as transaction fees. In the economic model of cryptocurrencies, the platform's profits depend heavily on the expenses incurred by trading activities.

When the transaction volume drops sharply, the platform's revenue will be difficult to maintain its operating costs, including server maintenance, technical research and development, personnel expenses, etc. This puts the platform's survival to a serious challenge and is one of the important factors that have caused OdinSwap and Valhalla to cease operations.

After February 28, if there is still a balance that the user has not received, the platform will make a manual refund. This measure fully takes into account the situation where some users may fail to withdraw funds in a timely manner due to various reasons.

However, it should be noted that refunds are subject to an appropriate BTC network fee. This is because transaction transfers and other operations in the Bitcoin network require a certain network handling fee to ensure that transactions can be quickly confirmed and processed.

Refunds will be processed manually and may take up to one month to complete. This is because manual refunds involve a series of complex processes, including checking user information, confirming balances, initiating refund operations, etc.

Moreover, in the case of congestion in Bitcoin network or other unforeseeable circumstances, the refund time may be extended. However, the platform promises to refund only the balance exceeding the network fee to protect the actual financial rights of users from being damaged.

Until the shutdown, OdinSwap and Valhalla have always emphasized that all user funds are safe. This is not groundless. During the operation of the platform, a series of advanced security technologies and measures are usually used to ensure the safety of user funds.

For example, multiple encryption technology is used to protect users' funding data and transaction information to prevent data breaches and hacker attacks. At the same time, a strict internal risk control system is established to monitor and manage the flow of funds in real time to ensure that the flow of funds is within a safe and controllable range.