How to Buy THORChain (RUNE)
Beginner’s Guide
What Is THORChain (RUNE)?
THORChain is a decentralized liquidity protocol that allows users to easily exchange cryptocurrency assets across a range of networks without losing full custody of their assets in the process.
With THORChain, users can simply swap one asset for another in a permissionless setting, without needing to rely on order books to source liquidity. Instead, market prices are maintained through the ratio of assets in a pool (see automated market maker).
The native utility token of the THORChain platform is RUNE. This is used as the base currency in the THORChain ecosystem and is also used for platform governance and security as part of THORChain’s Sybil resistance mechanisms — since THORChain nodes must commit a minimum of 1 million 300k RUNE to participate in its rotating consensus process.
THORChain was funded through an initial DEX offering (IDO) which launched through the Binance DEX in July 2019. Its single-chain chaosnet launched in April 2021, the multi-chain upgrade was launched in April 2021 and Mainnet is now live as of Jun 2022.
How to Buy THORChain Summary
- Get a THORChain wallet (e.g. Ledger, Trezor ,Guardia, Exodus , AtomicWallet)
- Find an exchange that sells THORChain (e.g. Binance, Kucoin, Crypto, GATE, MEXC)
- Deposit money and make the trade
- Withdraw the THORChain to your wallet
Buying THORChain in 3 Simple Steps
Step 1 – Get a RUNE wallet
THORChain Hardware Wallets
As THORChain (RUNE) is an ERC-20 token, it can be stored in hardware wallets that support Ethereum-based tokens. Here are some popular hardware wallets that support ERC-20 tokens like RUNE:
Ledger Nano S and Nano X: The Ledger Nano S and Nano X are popular hardware wallets that support a wide range of cryptocurrencies, including ERC-20 tokens. They offer secure storage, easy-to-use interfaces, and support for multiple coins and tokens.
Trezor Model T: The Trezor Model T is a hardware wallet that supports a variety of cryptocurrencies, including ERC-20 tokens like RUNE. It offers a touch screen display, PIN protection, and support for multiple coins and tokens.
KeepKey: KeepKey is a hardware wallet that supports ERC-20 tokens like RUNE. It offers a large screen display, PIN protection, and support for multiple coins and tokens.
When using a hardware wallet, it’s important to follow the instructions carefully and keep your recovery seed phrase in a safe place. It’s also recommended to purchase your hardware wallet from an official retailer to avoid purchasing a counterfeit device that could compromise your funds.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
THORChain Software Wallets
THORChain (RUNE) can be stored in software wallets that support Ethereum-based tokens. Here are some popular software wallets that support ERC-20 tokens like RUNE:
MyEtherWallet: MyEtherWallet (MEW) is a free, open-source, client-side interface that allows users to interact with the Ethereum blockchain. It also supports ERC-20 tokens like RUNE. MEW is available as a web application, mobile application, or a browser extension.
Trust Wallet: Trust Wallet is a mobile wallet that supports a variety of cryptocurrencies, including ERC-20 tokens like RUNE. It offers a user-friendly interface, easy-to-use features, and supports multiple coins and tokens.
MetaMask: MetaMask is a browser extension that allows users to interact with the Ethereum blockchain and access ERC-20 tokens like RUNE. It offers a secure and easy-to-use interface and is available for Chrome, Firefox, Brave, and Edge browsers.
It’s important to note that software wallets are connected to the internet and are more susceptible to hacking attempts than hardware wallets. It’s recommended to use a software wallet for small amounts of cryptocurrency and to store larger amounts in a hardware wallet for added security. Additionally, it’s important to always download wallets from official sources and keep your private keys and recovery seed phrases secure.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest THORChain software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an THORChain Exchange
Buy THORChain through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy THORChain through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Buy THORChain through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos.The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.
Buy THORChain through Gate.io
- Gate.io is a crypto exchange founded in the fall of 2017. The platform is a part of Gate Technology Inc corporation, and has a registration address in Virginia, USA. The platform does not have an official license. Its interface is available for working in three versions: English, Chinese and Japanese.
Buy THORChain through MEXC
- Founded in 2018, MEXC Global is known as the exchange of high performance and mega transaction matching technology. The team at MEXC Global are some of the first movers and pioneers of financial and blockchain technology. Currently, MEXC Global caters to 10 M+ users in more than 170 countries around the world and we have just started.
Step 3 – Withdraw Your THORChain (RUNE)
Once you decide on an exchange, open an account and buy your THORChain. Make sure to withdraw the THORChain from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
OVERVIEW
Who Are the Founders of THORChain?
According to an official representative of THORChain, the platform has no CEO, no founder and no directors. Instead, the further development of the protocol is organized via Gitlab with nodes as the ultimate deciders of which codebase to run.
Those currently working on the project are largely anonymous. Again, an official representative of THORChain states that this is to “protect the project and ensure that it can decentralize.”
A tweet by the project sheds some light on the theory behind maintaining a project with an anonymous team, as quoted below:
“-> Developers work for the Nodes, by shipping code that makes the system more valuable.
-> Nodes work for the, liquidity providers by securing assets and being online.
-> Liquidity providers bring capital, placed on-market for the Swappers and arbitrageurs.
-> Swappers and arbitrageurs pay fees, bringing economic activity.”
What Makes THORChain Unique?
THORChain is a unique cross-chain decentralized finance (DeFi) platform that allows users to trade and swap cryptocurrencies across different blockchain networks. Here are some of the unique features that make THORChain stand out:
Cross-chain functionality: THORChain is designed to be interoperable with other blockchain networks, enabling users to trade cryptocurrencies across different chains without the need for intermediaries or central exchanges. This enables users to trade cryptocurrencies with lower fees and faster transaction times than traditional exchanges.
Decentralized and trustless: THORChain is a decentralized platform that operates on a trustless model, meaning that there is no need for intermediaries or central authorities to facilitate trades or provide liquidity. This makes the platform more secure and transparent, as users retain full control of their funds.
Liquidity pools: THORChain operates on a liquidity pool model, where users can provide liquidity to pools of cryptocurrencies and earn fees in return. This enables users to earn passive income while also providing liquidity to the platform and helping to support its operations.
Rune token: THORChain has its own native token, called RUNE, which is used to facilitate trades and provide liquidity on the platform. RUNE holders can also participate in network governance and help shape the future direction of the platform.
Overall, THORChain is a unique and innovative platform that offers a decentralized and trustless way for users to trade cryptocurrencies across different blockchain networks, while also providing a way for users to earn passive income through liquidity provision.
How Many THORChain (RUNE) Coins Are There in Circulation?
As of June 2022, there are 308.0 million RUNE in circulation out of a total supply of 500 million.
As we touched on earlier, THORChain initially launched following an IDO on the Binance DEX. As part of the IDO, 20 million RUNE were sold. Prior to this, a total of 130 million RUNE were sold in earlier funding rounds.
According to the official Binance DEX proposal, 10% of the total supply (50 million tokens) was allocated to the team, and locked until the launch of the mainnet — unlocking at 20% per month thereafter. Much of this allocation was on-sold to raise further funds for the protocol. The team own less than 1% of all RUNE.
How Is the THORChain Network Secured?
THORChain is built using the Cosmos SDK and is powered by the Tendermint consensus mechanism. This keeps the network safe from attacks through a novel BFT proof-of-stake (PoS) system that sees a large number of validators work together to propose and finalize blocks of transactions.
Beyond this, THORChain’s smart contracts have been audited by several third-party security firms, including one by Certik — which found no vulnerabilities.
Where Can You Buy THORChain ?
THORChain (RUNE) can be purchased on several cryptocurrency exchanges. Here are some popular exchanges where you can buy RUNE:
Binance: Binance is one of the largest cryptocurrency exchanges and offers a variety of trading pairs for RUNE, including BTC, USDT, and BNB.
BitMax: BitMax is a cryptocurrency exchange that specializes in margin trading and offers a variety of trading pairs for RUNE, including BTC, USDT, and ETH.
KuCoin: KuCoin is a cryptocurrency exchange that offers a variety of trading pairs for RUNE, including BTC, USDT, and ETH.
Gate.io: Gate.io is a cryptocurrency exchange that offers a variety of trading pairs for RUNE, including BTC, USDT, and ETH.
PancakeSwap: PancakeSwap is a decentralized exchange (DEX) that operates on the Binance Smart Chain (BSC) and offers a variety of trading pairs for RUNE.
It’s important to note that cryptocurrency exchanges can be vulnerable to hacking attempts, so it’s recommended to store your RUNE in a hardware wallet for added security. Additionally, it’s important to do your own research and carefully consider the risks involved before investing in any cryptocurrency.