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THORChain Approves Conversion of $200M Debt into Equity Tokens
In a recent move, THORChain has announced the approval of a plan to convert its outstanding debt amounting to $200 million into equity tokens. This development marks a significant step in the company’s efforts to restructure its financial obligations and pave the way for future growth.
According to sources close to the matter, the approved plan involves the issuance of new equity tokens to holders of the original debt. These equity tokens will be pegged to THORChain’s native token, RUNE, which has recently seen a notable surge in price following the announcement.
While some community members have expressed relief and optimism about this move, others remain skeptical about the long-term viability of the plan. Some have raised concerns regarding potential legal implications related to the issuance of unregistered securities, as well as the complexity of the new token structure.
In terms of market reaction, RUNE has experienced a notable increase in value following the announcement, rising 13.7% over the past day and currently trading at $1.38. Despite this positive movement, however, the overall trend for RUNE remains negative, with losses amounting to 37.8%, 58.2%, and 72.7% over the last week, two weeks, and one month respectively.
As THORChain navigates this significant shift in its financial strategy, it will be crucial for the company to address any lingering concerns and provide clear guidance on how these equity tokens will be utilized going forward.
Source: coinjournal.net
