Thorchain, a well-known decentralized cross-chain liquidity protocol, is facing a $200 million debt crisis leading to the RUNE token’s value dropping to its lowest level since 2020. The price of the RUNE token has decreased by over 62% in the past week, trading barely above $1 compared to around $5 at the beginning of January. Following bankruptcy claims, Thorchain has halted ThorFi financial services and initiated a 90-day restructuring plan. While trading remains active, lending operations are suspended due to liquidity issues. Experts warn that to prevent a complete collapse, Thorchain needs to attract between $50 to $100 million in venture capital. Meanwhile, Trust Wallet has proposed purchasing Thorchain, potentially impacting the fate of the RUNE token and its creditors.
