The Impact of Shibarium’s Launch on Shiba Inu Token
The launch of Shibarium, the Layer 2 network for the Shiba Inu token, was expected to have a positive impact on its price. However, a bridging issue has caused a decline in SHIB’s value within 24 hours of launch.
Key Points:
- Shibarium launched on August 16, aiming to establish itself as a major player in the DeFi world.
- The launch was significant for the Shiba Inu community, as SHIB is the ecosystem token of the network.
- Shibarium was intended to portray Shiba Inu as a serious blockchain project, not just a meme token.
- Other dog-themed tokens, BONE, TREAT, and LEASH, were included on the Shibarium chain.
- Anticipation around supply reduction through SHIB token burns led to expectations of a price increase.
Bridge Functionality Issues:
Shibarium developed a bridge to facilitate interoperability with Ethereum. However, users encountered problems accessing their funds on the new chain, resulting in $1.7 million (945 ETH) being stuck in the bridge. Shiba Inu lead Shytoshi Kusama admitted that the funds could not be recovered, which caused further disappointment among users.
Price Impact:
Following the bridge issue, SHIB’s price dropped by approximately 7% in the last 24 hours. The prices of other Shibarium governance tokens, BONE, TREAT, and LEASH, also experienced significant declines.
Hot Take:
The launch of Shibarium was anticipated to boost the value of the Shiba Inu token, but the bridging issue has had the opposite effect. This incident highlights the importance of thorough testing and ensuring the functionality of new network features before launch. It also serves as a reminder of the risks associated with investing in meme tokens and the potential impact of technical issues on their prices.
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