Introduction

Odin.fun, born in February 2025 and founded by the creator of Bitcoin's ordinal market Bioniq, is essentially a launch and trading platform for the Runes protocol. Recently, this project has sparked a wave of interest in a small community, bringing some much-needed heat to the dormant Bitcoin ecosystem. However, on March 7th, community members reported the disappearance of 74 BTC on the Odin.fun chain, potentially due to a hack. The project's co-founder quickly responded on X, explaining that an error in the hard deposit synchronization code caused some user balances to exceed their deposit amounts. As a result, the 74 BTC deposit transactions could not be found on-chain, but the funds of current users are safe.

When discussing the relationship between public chains and token launch platforms, one cannot help but think of examples like Solana and Pump.fun, or Base and Viturals. A popular token launch platform can bring significant traffic to its host public chain. For instance, during the peak of Viturals, the net inflow of funds on Base surpassed that of Solana.

This is one of the reasons why token launch platforms have become so popular. Unlike other token launch platforms on different public chains, Bitcoin-based platforms like Odin.fun do not operate directly on the Bitcoin chain. To enhance user experience and reduce transaction fees, they typically run on Bitcoin's Layer 2 networks. The challenge they face is that these projects struggle to share the security of the Bitcoin main chain. The recent hacker fiasco at Odin.fun is a manifestation of this issue.

A more critical question is whether token launch platforms on Layer 2, like Odin.fun, have the potential to attract sufficient funds and traffic to revive the Bitcoin ecosystem.

Odin.fun, launched in February 2025 by the founder of Bitcoin's ordinal market Bioniq, is essentially a launch and trading platform for the Runes protocol. According to official disclosures, within a month, Odin.fun's trading volume exceeded 1,000 BTC, with over 37,000 platform addresses. The leading rune ODINDOG•ID•YTTL•ODIN reached a peak market cap of $35 million.

The Runes protocol is not new; it emerged after the 2024 Bitcoin halving. Developer Casey initially introduced the Ordinals inscription protocol, which later led to the derivative BRC-20 token protocol. However, BRC-20 exposed issues such as low transfer efficiency and UTXO bloat. To address these problems, Casey proposed the Runes protocol.

Thanks to these two protocols, Bitcoin now offers more than just a store of value; it has become a platform for asset issuance. This has spurred explosive growth in Bitcoin's infrastructure and related developments in 2023 and 2024.

In the crypto industry, innovation in asset issuance has never ceased. Odin.fun represents a transformation in the issuance and trading of Runes protocol assets.

For a token launch platform, success hinges on the "casino" experience design—whether it can provide a good "gambling" experience.

In terms of user experience, Odin.fun enables the issuance of Runes assets in seconds and one-click trading of Runes assets launched on the platform. According to its official explanation, Odin.fun uses a Layer 2 solution called Valhalla, which allows transactions to be finalized in just 2 seconds.

In addition to speed, users can also enjoy account abstraction (no social login), no-Gas transactions, and transactions without repeated signature confirmations—extremely convenient features.

These conveniences are due to Odin.fun's ability to hide the underlying complexity of the blockchain. As a Layer 2 product under the Bitcoin main chain, Odin.fun's Layer 2 solution is called Valhalla.

Since it is built on Bitcoin's Layer 2, users need to create an account with their Bitcoin wallet and deposit Bitcoin into the account. The process of depositing Bitcoin is essentially cross-chaining Bitcoin to the Layer 2 built by the project.

The Layer 2 solution provides convenience to users, but the project has not disclosed the detailed technology behind it. The recent hacker fiasco has revealed some potential technical flaws or immaturity.

According to the co-founder, when users deposit funds into the platform, the funds are stored in a threshold signature setup, a decentralized 12/34 threshold signature setup that ensures the security of BTC. These funds are then sent to the ODIN•FUN smart contract. All user BTC is pegged 1:1 with BTC on the Odin.fun platform. The disappearance of the 74 BTC was due to a deposit synchronization error that prevented it from being displayed.

How is the security of the deposited Bitcoin ensured? The official explanation is through a multi-signature mechanism. However, multi-signature is not absolutely secure. For users, not being able to manage their own assets but instead entrusting them to the Odin platform essentially follows the logic of a centralized exchange.

Previously, X user @Real0xJason noted that the BTC held by users on Odin.Fun essentially exists as ckBTC on the ICP blockchain. The ultimate security guarantee comes from the ICP blockchain. There is no need for a cross-chain bridge between ICP and the Bitcoin mainnet. ICP's chain fusion encryption technology allows its smart contracts to interact directly with other networks, making it more secure than wrapped BTC generated by typical Bitcoin L2 cross-chain bridges.

On the platform, the token launch process is called Ascend, which is the token bonding process. Initially, tokens created on Odin trade along a bonding curve. On this curve, 80% of the token supply is sold at a price of 0.211 BTC. The token price on Odin uses sats (satoshis), with a starting price of 0.11 sats (a market cap of $3,000) and an Ascend completion at 4.76 sats (a market cap of $100,000).

Once Ascend is completed, a project enters the next phase, the AMM stage. According to the official website, after token bonding (Ascend) is completed, the remaining 20% of the token supply and 0.2 BTC are deposited into the AMM pool to support further trading. Subsequent token trading follows the AMM curve k = X * Y, no longer the previous bonding curve y = e^x.

For platform users, they can not only launch and trade tokens but also provide liquidity (LP) on top of this. The platform also employs a referral reward marketing model, with 25% of platform fees going to the referrer.

Currently, the state of the Bitcoin ecosystem is not optimistic. There is no project like the previous inscriptions that can ignite widespread participation. Because of this, the inflow of funds and traffic cannot spark a new round of enthusiasm for the Bitcoin ecosystem.

Pump.fun and Viturals both gained popularity due to the fervor of Meme trading on their platforms, which in turn increased the heat and development of Solana and Base's on-chain ecosystems. However, Odin.fun has not yet sparked a similar on-chain ecosystem boom. Moreover, its leading token's peak market cap was only around $35 million.

Odin.fun does not fit this logic. Similar MemePumps have appeared in the Bitcoin ecosystem before, such as Satspump.fun on Bitcoin's Layer 2 Fractal, Lnpump.fun on the Lightning Network, and Stx.city on Stacks. However, none of these Layer 2 or sidechain Meme Pump platforms have achieved the same level of popularity as Pump.fun.

After all, it is difficult for a follower to surpass a successful predecessor. A more significant reason is that these Layer 2 or sidechain Meme Pump platforms lack the legitimacy of the Bitcoin main chain. This time, Odin.fun was able to generate some buzz because it capitalized on Runes, a new asset issuance method closely related to the Bitcoin mainnet. Additionally, during a cold market, there are fewer hotspots to stir up speculation.

However, Odin.fun's influence is limited to this extent. For the Bitcoin ecosystem, it is not an innovative and highly speculative project like inscriptions. It merely combines the previously popular narratives of Runes and Meme pumps. Currently, both of these narratives are old. Therefore, the project itself can only generate limited enthusiasm. For the Bitcoin ecosystem, such a project with a weak narrative cannot lead the revival of Bitcoin.

For investors, it is possible to participate with small amounts of capital. To choose a potentially high-growth token, one should look at the community and the whales. Essentially, this is more of a gamble, similar to the Meme trading playbook.

Introduction

Odin.fun, born in February 2025 and founded by the creator of Bitcoin's ordinal market Bioniq, is essentially a launch and trading platform for the Runes protocol. Recently, this project has sparked a wave of interest in a small community, bringing some much-needed heat to the dormant Bitcoin ecosystem. However, on March 7th, community members reported the disappearance of 74 BTC on the Odin.fun chain, potentially due to a hack. The project's co-founder quickly responded on X, explaining that an error in the hard deposit synchronization code caused some user balances to exceed their deposit amounts. As a result, the 74 BTC deposit transactions could not be found on-chain, but the funds of current users are safe.

When discussing the relationship between public chains and token launch platforms, one cannot help but think of examples like Solana and Pump.fun, or Base and Viturals. A popular token launch platform can bring significant traffic to its host public chain. For instance, during the peak of Viturals, the net inflow of funds on Base surpassed that of Solana.

This is one of the reasons why token launch platforms have become so popular. Unlike other token launch platforms on different public chains, Bitcoin-based platforms like Odin.fun do not operate directly on the Bitcoin chain. To enhance user experience and reduce transaction fees, they typically run on Bitcoin's Layer 2 networks. The challenge they face is that these projects struggle to share the security of the Bitcoin main chain. The recent hacker fiasco at Odin.fun is a manifestation of this issue.

A more critical question is whether token launch platforms on Layer 2, like Odin.fun, have the potential to attract sufficient funds and traffic to revive the Bitcoin ecosystem.

Odin.fun, launched in February 2025 by the founder of Bitcoin's ordinal market Bioniq, is essentially a launch and trading platform for the Runes protocol. According to official disclosures, within a month, Odin.fun's trading volume exceeded 1,000 BTC, with over 37,000 platform addresses. The leading rune ODINDOG•ID•YTTL•ODIN reached a peak market cap of $35 million.

The Runes protocol is not new; it emerged after the 2024 Bitcoin halving. Developer Casey initially introduced the Ordinals inscription protocol, which later led to the derivative BRC-20 token protocol. However, BRC-20 exposed issues such as low transfer efficiency and UTXO bloat. To address these problems, Casey proposed the Runes protocol.

Thanks to these two protocols, Bitcoin now offers more than just a store of value; it has become a platform for asset issuance. This has spurred explosive growth in Bitcoin's infrastructure and related developments in 2023 and 2024.

In the crypto industry, innovation in asset issuance has never ceased. Odin.fun represents a transformation in the issuance and trading of Runes protocol assets.

For a token launch platform, success hinges on the "casino" experience design—whether it can provide a good "gambling" experience.

In terms of user experience, Odin.fun enables the issuance of Runes assets in seconds and one-click trading of Runes assets launched on the platform. According to its official explanation, Odin.fun uses a Layer 2 solution called Valhalla, which allows transactions to be finalized in just 2 seconds.

In addition to speed, users can also enjoy account abstraction (no social login), no-Gas transactions, and transactions without repeated signature confirmations—extremely convenient features.

These conveniences are due to Odin.fun's ability to hide the underlying complexity of the blockchain. As a Layer 2 product under the Bitcoin main chain, Odin.fun's Layer 2 solution is called Valhalla.

Since it is built on Bitcoin's Layer 2, users need to create an account with their Bitcoin wallet and deposit Bitcoin into the account. The process of depositing Bitcoin is essentially cross-chaining Bitcoin to the Layer 2 built by the project.

The Layer 2 solution provides convenience to users, but the project has not disclosed the detailed technology behind it. The recent hacker fiasco has revealed some potential technical flaws or immaturity.

According to the co-founder, when users deposit funds into the platform, the funds are stored in a threshold signature setup, a decentralized 12/34 threshold signature setup that ensures the security of BTC. These funds are then sent to the ODIN•FUN smart contract. All user BTC is pegged 1:1 with BTC on the Odin.fun platform. The disappearance of the 74 BTC was due to a deposit synchronization error that prevented it from being displayed.

How is the security of the deposited Bitcoin ensured? The official explanation is through a multi-signature mechanism. However, multi-signature is not absolutely secure. For users, not being able to manage their own assets but instead entrusting them to the Odin platform essentially follows the logic of a centralized exchange.

Previously, X user @Real0xJason noted that the BTC held by users on Odin.Fun essentially exists as ckBTC on the ICP blockchain. The ultimate security guarantee comes from the ICP blockchain. There is no need for a cross-chain bridge between ICP and the Bitcoin mainnet. ICP's chain fusion encryption technology allows its smart contracts to interact directly with other networks, making it more secure than wrapped BTC generated by typical Bitcoin L2 cross-chain bridges.

On the platform, the token launch process is called Ascend, which is the token bonding process. Initially, tokens created on Odin trade along a bonding curve. On this curve, 80% of the token supply is sold at a price of 0.211 BTC. The token price on Odin uses sats (satoshis), with a starting price of 0.11 sats (a market cap of $3,000) and an Ascend completion at 4.76 sats (a market cap of $100,000).

Once Ascend is completed, a project enters the next phase, the AMM stage. According to the official website, after token bonding (Ascend) is completed, the remaining 20% of the token supply and 0.2 BTC are deposited into the AMM pool to support further trading. Subsequent token trading follows the AMM curve k = X * Y, no longer the previous bonding curve y = e^x.

For platform users, they can not only launch and trade tokens but also provide liquidity (LP) on top of this. The platform also employs a referral reward marketing model, with 25% of platform fees going to the referrer.

Currently, the state of the Bitcoin ecosystem is not optimistic. There is no project like the previous inscriptions that can ignite widespread participation. Because of this, the inflow of funds and traffic cannot spark a new round of enthusiasm for the Bitcoin ecosystem.

Pump.fun and Viturals both gained popularity due to the fervor of Meme trading on their platforms, which in turn increased the heat and development of Solana and Base's on-chain ecosystems. However, Odin.fun has not yet sparked a similar on-chain ecosystem boom. Moreover, its leading token's peak market cap was only around $35 million.

Odin.fun does not fit this logic. Similar MemePumps have appeared in the Bitcoin ecosystem before, such as Satspump.fun on Bitcoin's Layer 2 Fractal, Lnpump.fun on the Lightning Network, and Stx.city on Stacks. However, none of these Layer 2 or sidechain Meme Pump platforms have achieved the same level of popularity as Pump.fun.

After all, it is difficult for a follower to surpass a successful predecessor. A more significant reason is that these Layer 2 or sidechain Meme Pump platforms lack the legitimacy of the Bitcoin main chain. This time, Odin.fun was able to generate some buzz because it capitalized on Runes, a new asset issuance method closely related to the Bitcoin mainnet. Additionally, during a cold market, there are fewer hotspots to stir up speculation.

However, Odin.fun's influence is limited to this extent. For the Bitcoin ecosystem, it is not an innovative and highly speculative project like inscriptions. It merely combines the previously popular narratives of Runes and Meme pumps. Currently, both of these narratives are old. Therefore, the project itself can only generate limited enthusiasm. For the Bitcoin ecosystem, such a project with a weak narrative cannot lead the revival of Bitcoin.

For investors, it is possible to participate with small amounts of capital. To choose a potentially high-growth token, one should look at the community and the whales. Essentially, this is more of a gamble, similar to the Meme trading playbook.