This week was supposed to be a game-changer for fungible tokens on Bitcoin. A new protocol called Runes promised a faster, cheaper way to launch altcoins on the Bitcoin blockchain. However, the reality has been less than stellar.

Runes were designed to be a more professional alternative to existing, expensive options. However, the launch coincided with Bitcoin's halving event, leading to astronomically high transaction fees. Speculators hoping to mint "Runes" within the first block after the halving ended up paying millions of dollars in fees.

Despite the hype, many Rune prices have already plummeted. Popular "meme coins" launched using Runes haven't fared much better, with many experiencing significant price drops within just a day or two.

One such example is the "DOG GO TO THE MOON" Rune, heavily promoted by a social media influencer. This Rune launched with a controversial "donation" system, similar to tactics used by another project facing regulatory scrutiny. Despite promises of airdrops and massive price increases, the actual trading volume for DOG has been minimal.

Centralized Exchanges Dominate Rune Trading

While Runes were intended to be traded on decentralized marketplaces, established centralized exchanges like Gate.io and OKX have quickly taken control. These exchanges offer significantly higher trading volumes compared to the nascent Rune-specific platforms.

Gate.io currently dominates Rune trading with a single listing - "SATOSHI NAKAMOTO." This single Rune accounts for more trading volume than all 40+ Runes listed on OKX combined.

The Takeaway

The launch of Runes has been a mixed bag. While the technology offers a novel approach to altcoins on Bitcoin, the initial hype surrounding the project seems to have fizzled out. Additionally, the reliance on centralized exchanges for trading undermines the original vision of a decentralized ecosystem.