THORChain (RUNE) Price Plunges 31% After Pausing Bitcoin and Ethereum Withdrawals

The THORChain (RUNE) price plunged more than 31% in the last 24 hours after the interblockchain settlements protocol paused Bitcoin and Ethereum withdrawals on its lending and savers programs to prevent a potential insolvency risk.

The THORChain (RUNE) price plunged more than 31% in the last 24 hours after the interblockchain settlements protocol paused Bitcoin and Ethereum withdrawals on its lending and savers programs to prevent a potential insolvency risk.

Node operators on the THORChain network proposed and implemented a pause for 90 days in the early Asian hours today. This was done to give the protocol’s team some time to come up with a plan to resolve debts, according to messages from THORChain’s Telegram channels.

Crypto Banter’s Ran Neuner Tries To Reassure RUNE Community

Crypto Banter founder and CNBC crypto trader Ran Neuner shared his take on the situation and tried to reassure his over 905.9K followers in a Jan. 24 X post by saying that the THORChain protocol is still “working perfectly” and that RUNE will not go insolvent.

$RUNE Update:

I see a lot of people on my timeline that are under the impression that the protocol has failed and is insolvent.

This is incorrect.

The protocol is a decentralized cross chain protocol is working perfectly. It generates huge fees and cannot go insolvent.

One…

— Ran Neuner (@cryptomanran) January 24, 2025

He tried to downplay the debt repayments to savers and lenders, saying that the amount owed is “small” and less than $75 million, before adding that the team is now forced to find a way to “make lenders and savers whole.”

He concluded the post by saying that he will be holding his position in RUNE because panic selling has never worked out for him, adding though that he should have sold his holdings in LUNA when he had the chance.

Some of his followers commented on his post. One X user told him to “stop lying” and saying that everything is okay with the project. Another said he “got wrecked” following a Crypto Banter analyst’s advice to buy RUNE which was said to be “undervalued” at $4. The altcoin trades at $2.12 as of 2:59 a.m. EST.

THORChain Community Members Allege Nearly $200 Million In Liabilities

Some community members allege that THORChain’s liabilities stand at nearly $200 million. Of this amount, around $107 million is held in liquidity pools.

.@THORChain is insolvent

In the event of any large debt redemption and/or savers & synths deleveraging, it is certain that TC cannot meet its bitcoin and eth denominated obligations.

Validators decided to pause the network while they vote a restructuring plan

🔽🧵

— TCB (@1984_is_today) January 24, 2025

X user “TCB” posted a thread today that claimed that “THORChain is insolvent.” In one of the posts, he said that the project cannot meet its Bitcoin and Ethereum denominated obligations.

The post went on to say that validators on the THORChain network decided to pause the protocol and vote on a restructuring plan in the event of any large debt redemption and/or savers and synths deleveraging.

Another X user, “0xInsolvent,” posted a screenshot of an alleged conversation with a THORChain admin on Telegram. In the chat, the admin is said to have confirmed that the total liabilities are around $190 million. Of this amount, nearly $105 million is in BTC and ETH debt to lenders and around $85 million in USDC debt to savers.

The admin also said that the total debt to savers is less than $75 million and that the team has a plan to repay everyone in full. However, he added that they are waiting for the community to vote on a proposal to unpause the protocol.

The admin also said that the team is planning to sell some of RUNE’s inflation to repay the debt and that they are “working on something big.”

The admin concluded the chat by saying that the team is “not giving up” and that they “will make it.”

However, another X user later posted a screenshot of a conversation with a THORChain admin on Telegram that appeared to contradict the earlier claim. In this chat, the admin said that the total liabilities are less than $100 million.

This post also included a screenshot of an alleged conversation with another THORChain admin on Telegram. In this chat, the admin appeared to confirm that the total liabilities are less than $75 million.

The post concluded by saying that the team is “working on something big” and that they “will make it.”

The post also included a screenshot of an alleged conversation with another THORChain admin on Telegram. In this chat, the admin appeared to confirm that the total liabilities are less than $75 million.

The post concluded by saying that