Article contributed by Drake Flyer
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The price of RUNE has been going up and it might continue to go up. The idea behind it is undoubtedly incredible, but is it achievable?
Photo by Mingwei Lim on Unsplash
This article is meant to reason why THORChain might not succeed. This does not, by any means, mean that the project won’t overcome the obstacles and become one of the leading cryptocurrencies.
I know — we are in bullish territory and I’m, with no doubt, a huge fan of the green market, but I have learned from my mistakes many times. What sounds to be too good to be true, is too good to be true.
DISCLAIMER: I own RUNE. I love their plan and I hope it succeeds — but there are still flaws that I just can’t ignore. Without further ado let’s look at the reasons why I’m worried.
1. Not as secure as it needs to be
- It already had two big exploits in the past
- A history of exploits doesn’t mean there will be another, but the chances are bigger as if there was none before.
Recently I also posted an article about Crypto.com. One of their favorite lines was — we have never been hacked. Well, they have been, so they can’t say that anymore. Additionally, there are more things wrong with them, so make sure to read my article about it. Click here.
2. Extreme Complexity of THORChain
- It has more than 200 000 lines of code, which is A LOT, so much that it makes it extremely difficult or nearly impossible to get new developers.
- This means that experienced developers must either guide and teach newcomers for a very long time or they can never quit.
- We all know when main developers quit don’t we?
3. Mainnet Lauch Will Be Problematic
- It’s going to happen this year with no clear date and some unsolved problems. Example: NATIVE RUNE is not listed on any centralized exchanges (only BEP-20, ERC-20)
- No more BEP-20 and ERC-20 RUNE means people won’t be able to buy it to pay for transactions on the RUNE Mainnet
- No clear date of launch might just mean it won’t happen this year
- Once it becomes clear that the launch will be postponed, it could suppress the price action
4. Regulation
- THORChain makes it possible to trade without KYC
- This will not be allowed by the majority of governments (no doubt about it)
- This might cause RUNE to be considered and treated as other privacy coins (such as MONERO), resulting in a lack of trading fund’s money and therefore a poor price action
About THORCHAIN
“THORChain is trying to decentralize cryptocurrency liquidity via a network of public THORNodes and ecosystem products. Because the access to its native and cross-chain liquidity is open to any person it allows people to interact without the need to KYC.”
Article contributed by Drake Flyer
Follow him on Medium
