LeoAlpha: Trading RUNE Around the #REDEMPTIONOFRUNE Event


I am a firm believer in the Thorchain protocol and what they're building for the entire crypto industry. In my opinion, this is a top 10 project in the making and we're just in the early stages of seeing it grow and see adoption.

As part of the #LeoAlpha initiative, we've been focusing on Thorchain (RUNE) and the opportunity of accumulating RUNE if it should turn out to be a top 10 crypto project that solves the #1 issue in this industry: native multi-chain coin swaps.

Related: @khaleelkazi/exploring-the-idea-of-thorchain-s-potential-implementation-of-protocol-owned-liquidity-pol

There are so many exciting aspects of Thorchain to talk about and that is why I accumulate RUNE regularly (and I believe many others on LeoFinance have been as well).

Short-Term Trade Setup on RUNE?

For obvious reasons, my time to trade is limited. I spend 99% of my time focused on designing, developing and operating LeoFinance and I use the 1% to pay attention to interesting projects in the space and accumulate a stake when I feel conviction for them.

RUNE is at the top of that accumulation list. Sometimes, however, a nice short-term trade setup presents itself.


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As of this morning, 50% of Thorchain nodes are synced up and ready to enable Ethereum and ERC20 trading.

This is the #1 event that everyone has been waiting for since Thorchain was hacked in the not-so-distant past.

Personally, I've used the post-hack price depression on RUNE to accumulate an even more massive stake than I had before. I believe firmly in the Thorchain team and their ability to deliver multi-chain native crypto swaps. There is nobody in the space that has this product even close to delivery and Thorchain had it (and has it for everything but ETH/ERC20s as of this moment).

Once ETH/ERC20s re-open and people realize the high degree of security that the team brought in post-hack, I believe RUNE will catch up with the rest of the "New-Age DeFi" world. Projects like LUNA are exploding and I believe Thorchain is one of the next to take off and see mass adoption.

With ETH/ERC20s reopening in the next 2-3 days, I am making a short-term bet alongside my long-term bet.

There are a number of ways to do this, let's explore a few options.

Trade RUNE/BTC, Futures and Thorswap BTC->RUNE

3 ways we can explore this short-term trade setup:

  1. Trade BTC (or another asset) for RUNE on a CEX
  2. Trade Futures on a CEX (if you have access)
  3. Use Thorchain native asset swaps to trade BTC (or another) for native RUNE

The first is how you might trade most assets: go to a CEX and exchange one crypto asset for RUNE.

Lately, I've been buying a lot of RUNE with my BTC reserves. Some might call that crazy, I call it opportunistic.

Outside of my regular accumulation of RUNE, this short-term trade setup to trade the RUNE/BTC pair and then back into BTC once ETH/ERC20 routers re-open is too hard to pass up.. free BTC, IMO - also, more BTC to pool with my RUNE when #RAISETHECAPS happens.

If you have access to a CEX like Binance, you can also run a leveraged futures trade on RUNE. I like this setup a lot, but only if you fully understand and accept the risks of leveraged trading.

Leveraged trading can be an incredible way to take advantage of a short-term move like what I expect RUNE to pull off this week. If you have the self-control to deploy the strategy, then I think it could be a winning one. I personally have taken on some leverage for a short-term setup on RUNE. Looking to close it at around $12-$15 post-ETH re-opening.

The 3rd trade setup is to use Thorswap (a Thorchain DEX Aggregator) to swap native assets for native RUNE. Obviously, ETH/ERC20s can't be utilized for this trade setup. Like I said, I've been converting some BTC reserves into RUNE.

One of the main ways I've been doing this is on Thorswap. Converting native BTC from a ledger hardware wallet into native RUNE back into the ledger hardware wallet (yes, the Thorchain app is back and available on Ledger devices).

What's the Price Target?

RUNE is trading at $7.60 as I write this post. I've been accumulating anywhere in the range of $3-$10 after the ETH/ERC20 router hack a few months back.

For this trade setup, I've been buying RUNE over the past several days with BTC reserves. Planning to migrate back into BTC (only with this short-term trade position) after the ETH routers re-open and people come to understand what Thorchain did in terms of audits, security team, bounties, etc. to make sure that another hack becomes extremely unlikely.

I'm expecting a quick recovery to $12-$15. Obviously, I'm no technical analyst nor predictor of any kind. I believe in Thorchain and simply see an opportunity to pick up some extra BTC over the next week with this little setup.

NFA, DYOR, yada yada.

This post is part of the #LeoAlpha Initiative. Read More

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