THORChain’s native token RUNE experienced significant gains during the 2021 bull run, reaching an all-time high of over $20 in May. However, the platform has faced multiple attacks, including a recent hack that resulted in hackers making off with coins worth over $8 million. THORChain is a cross-chain protocol that allows for trading of cryptocurrencies across various blockchains in a decentralized way. Despite criticism of pausing the network during the attacks, THORChain’s community has defended its handling of the situation and promised to cover losses. The price of RUNE has decreased significantly but is still considered a strong project for the long-term potential of DeFi.
THORChain and its native token RUNE saw impressive gains during the beginning of the 2021 bull run, but recent attacks have highlighted flaws in the network. In this article, we’ll examine these attacks and how they’ve been handled, as well as THORChain’s future in the DeFi landscape.
Overview of THORChain
THORChain is a cross-chain protocol that allows users to trade crypto assets across various blockchains in a decentralized way. Unlike centralized exchanges, THORChain allows users to trade non-native crypto assets directly without the need for a middleman. The project was founded in 2018 during a Binance hackathon and has a team that is mostly anonymous and community-driven.
The Recent Hacks
THORChain experienced three separate attacks within a few weeks, with the most recent one resulting in hackers stealing coins worth over $8 million. The attacks exposed flaws in the network, including the use of custom wrappers to trick the Bitfrost protocol into reading fake deposits. THORChain’s community received real-time updates via Twitter and Telegram as the team worked to regain control.
Despite some criticism, THORChain’s community largely defended the team’s handling of the situation, praising their clear and open communication throughout. The team also promised to cover any losses suffered by liquidity providers. The THORChain treasury will shoulder the burden of these losses, which is exactly what it’s meant for. The team has slowed down any extensive coding to limit any future threats.
The Impact on Price
The attacks drove the price of RUNE down even further, falling to a recent low of $3.01, a significant drop from its all-time high of over $20. The THORChain community remains strong, however, and the long-term potential for cross-chain protocols like this is significant.
While the recent attacks on THORChain were undoubtedly damaging, they also highlighted the importance of addressing system flaws in the early stages of development. As THORChain continues to develop, it has the potential to become a truly resilient platform. If you believe in the long-term potential of decentralized finance, then cross-chain protocols like THORChain are worth watching closely.