What Is THORChain ($RUNE)? Everything You Need to Know

What is THORChain ($RUNE)?

THORChain is a decentralized cross-chain liquidity protocol that empowers users to exchange tokens across different blockchains, such as Bitcoin and Ethereum, without intermediaries. Its primary goal is to enhance interoperability and liquidity within the cryptocurrency market by enabling seamless, non-custodial cross-chain swaps.

Key Features of THORChain

Decentralized Exchange

THORChain functions as a decentralized exchange (DEX), allowing cross-chain asset swaps without the need for wrapping tokens.

Continuous Lending Pools

It employs continuous lending pools where supported cryptocurrencies are deposited alongside its native token, RUNE, to facilitate cross-chain exchanges.

Tendermint Consensus Engine

THORChain uses the Tendermint consensus engine and Cosmos-SDK for efficient network management.

GG20 Threshold Signature Scheme (TSS)

The protocol leverages the GG20 TSS to enhance security measures.

Cross-Chain Swaps

THORChain enables instant double-swaps for non-native crypto assets, ensuring efficient trading.

Staking and Lending

It supports both staking and lending within its liquidity pools, providing additional opportunities for users.

Integration

THORChain is integrated into various applications like ShapeShift and Synthetix, showcasing its real-world utility in decentralized finance and cryptocurrency trading.

History and Development

• Founding: THORChain was founded on June 1, 2018, by John-Paul Thorbjornsen and his team.
• Mainnet Launch: The mainnet was launched in June 2022.
• Recent Updates: Recent updates include the addition of the BNB Smart Chain and a hard fork upgrade to improve network security.

Buying and Storing RUNE

• Exchanges: RUNE can be purchased on various cryptocurrency exchanges such as Coins.ph.
• Wallets: It can be stored in both hot wallets (software-based) and cold wallets (hardware-based).

How Does Thorchain (RUNE) and Runes on Bitcoin Work?

Understanding how these two concepts of "RUNE" operate involves delving into their unique functionalities and processes. Here's a step-by-step guide to help you grasp how Thorchain (RUNE) and Runes on Bitcoin work.

Use Cases of $RUNE

Scenario 1: THORChain (RUNE)

• Scenario Description: THORChain's RUNE is a cryptocurrency that powers a decentralized liquidity protocol. It facilitates seamless asset swaps in a permissionless environment.
• Challenges: Users face high transaction fees, lack of liquidity, and governance issues in decentralized networks.
• Solutions: RUNE addresses these challenges by providing liquidity, enabling staking, covering transaction fees, and allowing governance participation.
• Results or Benefits: Users benefit from efficient asset swaps, earning rewards through staking, reduced transaction costs, and having a say in network governance. 🚀

Scenario 2: Runes on Bitcoin

• Scenario Description: Runes are a token standard on Bitcoin that facilitates the issuance of fungible tokens like security tokens and stablecoins.
• Challenges: Traditional token creation on Bitcoin faces efficiency issues, high transaction costs, and network congestion.
• Solutions: Runes enhance efficiency, reduce costs, and are compatible with the Lightning Network, minimizing junk UTXOs.
• Results or Benefits: Projects can issue tokens efficiently, enjoy faster and cheaper transactions, and maintain a cleaner Bitcoin network. ⚡

Why Choose $RUNE for These Use Cases

• Decentralized Liquidity: THORChain's RUNE offers a robust platform for decentralized asset swaps, providing unparalleled liquidity.
• Network Efficiency: Runes on Bitcoin ensure efficient and cost-effective token creation and transactions, leveraging Bitcoin's security.
• User Empowerment: Both use cases of $RUNE empower users by offering governance participation and staking rewards.
• Innovation: These solutions showcase innovative approaches to longstanding blockchain challenges, enhancing user experience and network functionality. 🔄

Pros of $RUNE

Uptrend Potential

Recent analysis suggests that RUNE is showing an uptrend and could continue its rise if it breaks above certain resistance levels, such as $4.88. This potential makes it an attractive option for traders looking to capitalize on short-term price movements.

Market Entry Points

For buyers, potential dips or support levels can provide favorable entry points into the market. Identifying these opportunities can be crucial for maximizing returns on investment.

Community Interest

RUNE is actively discussed in various trading communities and platforms, indicating ongoing interest and potential for further growth. Community engagement often translates to increased trading volumes and market activity.

Cons of $RUNE

Volatility

Like many cryptocurrencies, RUNE can be highly volatile, making it risky for investors. Price fluctuations can result in significant losses if not managed properly, requiring careful risk assessment and management strategies.

Market Resistance

If RUNE fails to break through resistance levels, it could lead to a downturn, making it less attractive for investors who are looking for immediate gains.

Regulatory Risks

Cryptocurrencies, including RUNE, are subject to regulatory changes and legal challenges, which can impact their value and stability. Investors should stay informed about regulatory developments in the crypto space.

Market Sentiment

Negative market sentiment or bearish momentum can lead to price drops, making it challenging for sellers to secure favorable prices. Monitoring market sentiment is crucial for timing trades effectively.

Is $RUNE Right for You?

Deciding whether to invest in $RUNE depends on your risk tolerance, investment goals, and market knowledge. If you are comfortable with the inherent volatility of cryptocurrencies and willing to engage in thorough research, $RUNE could be a viable option. However, those who prefer stable, long-term investments might find the risks outweigh the potential rewards.

Additional Considerations

• Technical Analysis: Utilizing technical analysis tools and charts, such as those provided by LuxAlgo, can help traders make more informed decisions about RUNE and other cryptocurrencies.
• Community Support: Platforms like The Rational Investor offer resources and community support that can help traders navigate the complexities of cryptocurrency trading, including strategies for managing risks associated with RUNE.

Where to Buy and Sell THORChain ($RUNE)?

At the moment, $RUNE is not available for purchase or trading on Coins.ph. However, you can still explore a wide range of other cryptocurrencies that we offer, with the same trusted service, high security, and fast transactions you’ve come to rely onWe are always working to expand our offerings, so stay tuned for updates on when $RUNE will be available.

How to Buy Crypto on Coins.ph?

Via Coins Pro, BSP Licensed Spot Exchange:

1. Step 1: Log into your Coins Pro account and click [Balance].
2. Step 2: Select the currency you want to deposit, click on [Deposit] and enter your desired cash-in amount.
3. Step 3: Select trading pair and enter the [Order Quantity] you would like to trade.
4. Step 4: Click Buy or Sell to place your Limit and Stop Orders.
5. Step 5: Wait for your order to be filled.

Disclaimer: The information and publications in this article are not intended to be and do not constitute financial advice, investment advice, trading advice, or any other advice or recommendation offered or endorsed by Coins.

Join the Coinmunity

Connect with like-minded crypto enthusiasts! Be the first to learn about our news and campaigns.

Join us on:

• Twitter: https://twitter.com/coinsph
• Discord: https://discord.com/invite/coinsph
• Telegram (Announcements): https://t.me/coinsph_announcements
• Telegram (Community): https://t.me/coinsphfilipino
• Instagram: https://www.instagram.com/coinsph/
• Facebook: https://www.facebook.com/coinsph/
• TikTok: https://www.tiktok.com/@coinsph_official
• YouTube: https://www.youtube.com/coinsph