New Hotspot in the Bitcoin Ecosystem: Odin.fun Token Launch Platform Attracts Follow

Recently, a project called Odin.fun has sparked quite a discussion in the cryptocurrency circle. It is a Token launch and trading platform based on the Runes protocol, operating similarly to other Token launch platforms on public chains. The emergence of this project has brought some new vitality to the long-silent Bitcoin ecosystem.

However, on March 7th, users reported that 74 Bitcoins had vanished from the Odin.fun platform, suspected to be a result of a hacker attack. In response, the project team quickly replied, stating that this was due to an error in the deposit synchronization code that caused some users' balances to show amounts exceeding their actual deposits. In reality, users' funds are safe; it's just that the deposit transaction records for these 74 BTC cannot be queried on the chain.

Looking at the development history of the cryptocurrency industry, token launch platforms often bring considerable traffic to the public chains they are based on. For example, during the peak period of Viturals, the net inflow of funds on the Base chain once exceeded that of Solana. This is also one of the important reasons why such platforms can become very popular.

Unlike other token launch platforms on public chains, Bitcoin ecosystem projects like Odin.fun are not directly built on the Bitcoin main chain but choose to be built on the second layer network of Bitcoin. The purpose of this approach is to enhance user trading experience and reduce transaction fees. However, this architecture also brings about a significant issue: these projects struggle to share the security of the Bitcoin main chain. The "Odin.fun incident" is a concrete manifestation of this problem.

What is more worthy of discussion is whether second-layer token launch platforms like Odin.fun can truly provide enough momentum for the revival of the Bitcoin ecosystem, attracting substantial funds and traffic?

Product Design of Odin.fun

Odin.fun was launched in February 2025, founded by the creator of the Bitcoin ordinal market Bioniq. It is essentially a token launch and trading platform based on the Runes protocol. According to official data, in the first month of operation, the trading volume on the Odin.fun platform exceeded 1000BTC, and the number of platform addresses surpassed 37,000, with the most popular rune token ODINDOG•ID•YTTL•ODIN reaching a market cap of over 35 million USD.

The Runes protocol is not a completely new concept; it was born after the Bitcoin halving in 2024. Following the introduction of the Ordinals inscription protocol and the BRC-20 token protocol, developer Casey proposed the Runes protocol to address the issues of low transfer efficiency and UTXO expansion present in BRC-20. The emergence of these protocols has allowed Bitcoin to have more possibilities in asset issuance, in addition to serving as a means of value storage. It is precisely due to these innovations that the Bitcoin ecosystem and related infrastructure experienced explosive growth in 2023 and 2024.

For the cryptocurrency industry, the innovation in asset issuance methods has been ongoing. Odin.fun is an innovative attempt by the Runes protocol in asset issuance and trading. For token launch platforms, the key to their success lies in whether they can provide users with a good "speculation" experience.

In terms of specific user experience, Odin.fun has achieved second-level issuance and one-click trading of Runes assets. According to official information, this is due to its use of the second-layer solution Valhalla, which can complete the final confirmation of transactions within 2 seconds.

In addition to high-speed trading, users can also enjoy convenient features such as account abstraction ( without social login ), gas-free transactions, and no need for repeated signature confirmations. These optimized experiences are mainly attributed to Odin.fun's successful concealment of the underlying chain's complexity.

As a second-layer product under the Bitcoin main chain, users need to create an account using a Bitcoin wallet and recharge the Bitcoin in the wallet to the platform account. This recharge process is essentially cross-chain transferring Bitcoin to the project's second-layer network.

Although the layer two solution brings convenience to users, the official has not disclosed detailed technical implementation methods. This "false alarm incident" also exposed potential vulnerabilities or immature aspects in its technology.

According to the project party, the funds deposited by users will be stored in a decentralized 12/34 threshold signature setup to ensure the security of BTC. These funds will then be sent to the ODIN•FUN smart contract. All users' BTC on the platform maintain a 1:1 ratio with the actual deposited BTC. The "disappearance" of 74 Bitcoins is precisely due to a deposit synchronization error that resulted in incorrect display.

Regarding the security guarantees for users depositing Bitcoin, the official statement is that it is achieved through multi-signature methods. However, multi-signature is not absolutely secure, and users still need to entrust their assets to the Odin platform, which essentially follows the logic of a centralized exchange.

Some analyses suggest that the BTC held by users on Odin.Fun actually exists as ckBTC on the ICP public chain. Its security ultimately relies on the ICP public chain, and there is no need for a cross-chain bridge between ICP and the Bitcoin mainnet. The chain fusion encryption technology of ICP allows its smart contracts to interact directly with other networks, thus making its security higher than that of wrapped BTC generated through a cross-chain bridge.

As a Token issuance and trading platform, the token trading rules of Odin.fun are as follows: the token launch process is called Ascend, which is the token bonding process. Newly created tokens will initially be traded along a bonding curve, with 80% of the token supply sold at a price of 0.211 BTC. The platform uses sats as the unit for token pricing, with an initial price of 0.11 sats and a market cap of 3000 USD, completing Ascend at 4.76 sats with a market cap of 100,000 USD.

After completing Ascend, the project enters the AMM stage. The remaining 20% Token supply and 0.2BTC will be deposited into the AMM pool to support subsequent transactions. At this time, Token trading will follow the AMM curve k = X * Y, instead of the previous binding curve y = e^x.

In addition to launching and trading Tokens, users can also participate in LP( liquidity provision). The platform also adopts a referral rebate marketing model, with 25% of the platform fees going to the referring users.

Can Odin.fun Lead the Revival of the Bitcoin Ecosystem?

Currently, the development situation of the Bitcoin ecosystem is not optimistic, lacking projects that can ignite widespread enthusiasm for participation. Therefore, the influx of funds and traffic is difficult to stimulate a new round of enthusiasm for the Bitcoin ecosystem.

Although the previous Pump.fun and Viturals have driven the popularity of Solana and Base through the hype of Meme, promoting the ecological development of these public chains, Odin.fun does not seem to have sparked a similar scale of on-chain ecological boom. Currently, its leading Token's total market value has only reached a maximum of 35 million dollars.

In fact, similar Meme Pump models have appeared multiple times in the Bitcoin ecosystem, such as Satspump.fun on the Bitcoin Layer 2 Fractal, Lnpump.fun on the Lightning Network, and Stx.city on Stacks. However, these Meme Pump projects on Layer 2 or sidechain networks have not been able to achieve the same level of influence as Pump.fun.

As a latecomer, it is difficult to surpass the successful pioneers. More importantly, these Meme Pump platforms on layer two or sidechains lack the legitimacy of the Bitcoin main chain. Odin.fun is able to attract some attention mainly because it combines Runes, a new asset issuance method closely associated with the Bitcoin mainnet. In addition, the current market conditions are relatively sluggish, with fewer hot topics available for speculation.

However, the influence of Odin.fun seems to be limited to this. For the Bitcoin ecosystem, it is not a project with the unique innovation and strong hype hotspots like inscriptions, but rather a combination of the already stale narratives of runes and Meme pump. Therefore, the heat that this project itself can generate is limited, making it difficult to bear the heavy responsibility of promoting the revival of the Bitcoin ecosystem.

Nevertheless, for investors, it is still possible to consider participating with small funds. When selecting potential stocks, one can follow the community activity and the strength of the project party. However, essentially this is more akin to a speculative behavior, similar to the playstyle of Meme Tokens.