I see that Rune's Thorchain has exceeded $5. This is the top of the channel it has been in for some time. It might be a good idea to sell now.
I feel that, like #Hive, and #Leo; #Rune is an App Coin. What is an App Coin? An App Coin is a cryptocurrency created for a particular application. Steem's only purpose was to transfer influence to others on Steemit. The recipient could then power-up, and be locked in as a financial supporter of the Steemit backend (which is the Steem blockchain). The ability to send value with a very low fee and with reasonable liquidity to and from fiat was already a niche covered well by litecoin and dash when it was setup in 2016.
When you take that position on Steem as I do, the original design decisions made sense. A high inflation rate to discourage people not to hold liquid Steem, the high power-down time to prevent hot-money from going into the platform, and all of your influence depended on how much Steem Power you had.
Leo is an appcoin which gives you utility to use in leofinance.io. Now, collectively and altruistically it is good that some of you hold #Leo and #Hive. Collectively we can maintain a #free-speech platform by owning #Hive and #Leo.
Now, #Rune is an appcoin for the Thorchain DEX. In order to be a liquidity provider you must hold rune. In order to trade on Thorchain you must either buy or sell rune. You can go from say Litecoin to Bitcoin Cash, by first buying Rune with Litecoin and then selling Rune for Bitcoin Cash and the interface may even hide that from you but that is how it works. There is problem with Rune volatility. It is far too much. Using this new crypto for Thorchain COCOA isn't going to be much better.
Rather than display the amounts, I am dividing all of the amounts I added and all of my balances by a constant and rounding for privacy concerns.
So, near the peak in March of 2024, I bought $15 worth of the Litecoin pool on Thorchain. This means the pool would manage about 0.08 LTC and 0.875 Rune. Then Rune dropped in price and Runes were bought as the price went down. So, now I have nearly 1 Rune but 0.06 LTC. So, I have a total value of only $12 after this.
Yet the reported pool earnings in the Thorchain client says 58% return. If you zoom out a little more, Rune is up 100% from a year ago today. It seems this Appcoin should have been made also an algorithmic stablecoin.
