Market news: ThorChain is in a debt repay crisis and the verification node has been suspended from network operation. It is voting on the restructuring plan

PANews reported on January 24 that according to X user TCB, THORChain is currently insolvent. Data shows that THORChain’s current liabilities include $97 million in borrowings (ETH and BTC) and approximately $102 million in savings and synthetic assets, while available assets have only $107 million in external liquidity. TCB stated that THORChain’s lending obligations were fulfilled by minting and selling RUNE tokens, and this design resulted in a high degree of reflectivity, further exacerbating the problem. After repaying $4 million in RUNE liabilities yesterday, the agreement owes millions more RUNE. Validation nodes have suspended network operations and are voting on the reorganization plan.

THORChain faces two options: one is to maintain the status quo, about 5-7% of the value will be withdrawn by the first batch of exits, and RUNE will continue to fall; the other is to declare a debt default and retain the valuable part through bankruptcy reorganization, without affecting the feasibility of the agreement Gradually repay creditors on the premise of safety. TCB recommends adopting the second option to maintain network value and achieve long-term development by protecting the rights and interests of liquidity providers.

The market situation shows that the price of THORChain (RUNE) is currently trading at $2.27, a drop of 29% in 24 hours.