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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/thorchain-faces-financial-turmoil-as-services-temporarily-halt/" rel="noopener noreferrer nofollow">THORChain Faces Financial Turmoil as Services Temporarily Halt</a> 
THORChain (RUNE) has temporarily suspended its THORFi services due to financial uncertainties. The protocol has entered a 90-day restructuring process to address emerging debt issues and payment obligations.
<h2 style="text-align: justify" id="strong-the-financial-crisis-hitting-thorchain-strong">The Financial Crisis Hitting THORChain</h2>
Recently, THORChain, known for its cross-chain swap services, has encountered severe financial problems. The accumulation of debt from the “Savings and Lending” programs under THORFi forced the protocol to suspend these services. While trading operations continue, lending transactions have been temporarily halted, a decision made through a vote via validator nodes.
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 Altcoin RUNE
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Following these developments, the main network asset RUNE has lost over 30% of its value in the past 24 hours. Experts noted that this situation has created a loss of confidence in the market. Dragonfly Capital partner Haseeb Qureshi described the scenario as an “insolvency freeze,” indicating that the protocol is experiencing a serious liquidity crisis.
<h2 style="text-align: justify" id="strong-debt-problems-arising-from-bitcoin-loans-strong">Debt Problems Arising from Bitcoin Loans</h2>
The protocol’s debt burden is primarily due to Bitcoin loans taken at low prices. Although RUNE was minted when Bitcoin’s price increased, this maneuver complicated the debt situation. Insufficient liquidations accelerated the decline in the value of the <a href="https://en.coin-turk.com/how-to-buy-monetha-coin/" rel="noopener noreferrer nofollow">altcoin</a>, challenging the protocol’s ability to meet its payment obligations. The community is concerned that this could create a domino effect similar to the Terra/Luna collapse.
Synthetic assets backed by THORChain’s collateral system are also under scrutiny. These derivative assets represent <a href="https://en.coin-turk.com/cryptocurrency-markets-on-edge-an-update-on-the-genesis-case-and-binance-lawsuit/" rel="noopener noreferrer nofollow">cryptocurrencies</a> like Bitcoin and Ethereum and are supported by RUNE. The sharp decline in RUNE’s price poses a threat to the value of these assets. Community members argue that THORChain lacks the capacity to repay its debts.
The community and validators are working on new economic proposals to stabilize the protocol. THORChain’s founder John-Paul Thorbjornsen stated that the system will recover following the restructuring. Thorbjornsen claimed, “The protocol has the capacity to easily repay debts after the restructuring.”
The post <a href="https://en.coin-turk.com/thorchain-faces-financial-turmoil-as-services-temporarily-halt/" rel="noopener noreferrer nofollow">THORChain Faces Financial Turmoil as Services Temporarily Halt</a> appeared first on <a href="https://en.coin-turk.com" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.

THORChain Faces Financial Turmoil as Services Temporarily Halt

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