THORChain’s Native Cryptocurrency RUNE Surges as THORSwap Resumes Trading
The native cryptocurrency of THORChain, RUNE, experienced an impressive 8% surge as its primary exchange, THORSwap, reinitiated trading activities. Last week, trading on THORSwap was halted due to concerns about funds flow from the November 2022 FTX exploit. However, lending, staking, and borrowing remained active during this pause.
THORSwap: A Liquidity Source for Cross-Chain Transactions
THORSwap is built on the assets housed on THORChain, a layer-1 blockchain designed for seamless interaction across multiple blockchains. It acts as a liquidity source for executing cross-chain transactions.
RUNE Witnesses Declining Trend and Reversal
Since the trading halt on THORSwap, RUNE had been experiencing a declining trend, falling by 27% from $2.03 to $1.48. However, just before the exchange’s announcement of resuming trading, the trend reversed positively.
THORSwap is back online! Please resume your regularly scheduled swapping of over 5,500 assets across 10 blockchains, right from your own self-custody wallet.
What’s changed? Other than the shiny new terms of service, users won’t notice a thing. Behind the scenes, we’ve partnered…
— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 12, 2023
The announcement of THORSwap resuming trading also had a positive impact on THOR, the platform’s governance token, which saw an 11.5% increase. As a result, trading volumes through THORChain surged to $62 million on Thursday, a significant jump from the previous days.
Enhanced Security Measures on THORSwap
To address concerns about unlawful blockchain funds, THORSwap implemented enhanced security measures in its terms of service. Users from nations under U.S. sanctions are now prohibited from using the platform. The management of THORSwap has partnered with a leading industry player to integrate these security features. This approach aligns with other decentralized exchange platforms like Uniswap, which collaborates with investigation companies to flag potential financial misconduct.
However, critics argue that these regulations undermine decentralization. They believe that innocent individuals may be unfairly impacted by such stringent restrictions. On the other hand, supporters of THORSwap highlight that individuals in sanctioned nations have alternative platforms available and emphasize the need for compliance with the law.
Hot Take: The Impact of Resuming Trading on RUNE and THOR
The resumption of trading on THORSwap had a positive impact on both RUNE and THOR. RUNE experienced an 8% surge following the announcement, while THOR saw an 11.5% increase in value. This indicates renewed investor confidence in the platform after concerns related to the FTX exploit. The significant jump in trading volumes through THORChain further demonstrates the market’s interest and participation in cross-chain transactions facilitated by THORSwap.
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