Renowned institution personally discloses largest holdings, why is THORChain favored by Multicoin Capital?

Renowned investment firm Multicoin Capital released a research article yesterday stating that the token RUNE issued by THORChain is one of the largest assets in its investment portfolio.

Major Holdings of Multicoin Capital

THORChain is a liquidity funding pool (AMM) protocol focused on cross-chain asset trading, allowing users to conduct spot transactions between different underlying chains, such as swapping ETH for DOT, in a decentralized manner without the need for centralized exchanges.

Multicoin Capital points out that there are many solutions in the field of cross-chain asset trading. Since the proposal of Tilan Nolan's atomic swaps, subsequent solutions such as Simple Payment Verification proof (SPV), Relayers, and even some consensus consolidation solutions have emerged. However, despite offering comprehensive solutions, Multicoin Capital states that none of them have been successful due to various reasons such as slow transaction processing speeds, the free option problem, and high transaction fees. Among these, they are most optimistic about the solution proposed by THORChain:

"We believe that THORChain is a solution that minimizes trust and effectively enables cross-chain spot token trading (not just derivatives). THORChain is the foundation of cryptocurrency trading infrastructure, and as the platform continues to grow, it will play an increasingly important role in the cryptocurrency ecosystem, making it more diverse."

Furthermore, Multicoin Capital also revealed that the token RUNE of THORChain is the largest cryptocurrency asset in the company's portfolio.

Short-term and Long-term Development Plans

Short-term Development Progress

The THORChain team has recently released a multi-chain testnet, which includes trading functionalities between different underlying assets such as ETH, LTC, BCH, and BNB. In addition, the core team is also actively expanding support for popular public chains such as Dogecoin, Monero, Zcash, Polkadot, Haven, Monero, and others, with progress updates expected to be released in the coming months.

Long-term Development Plans

In terms of long-term development plans, the team aims to improve the network's capital efficiency by enhancing leverage trading capabilities. Some examples include using liquidity certificates as collateral for lending services, synthetic assets compatible with Cosmos IBC, and multi-asset synthetic pool LP tokens (such as THOR.USD and THOR.ALT) that generate income through trading activities. The implementation of these features will further expand the THORChain ecosystem.