The Shiba Inu team raised $12 million to create a new layer 3 blockchain. Despite the developments, overall activity on the network decreased.
The Shiba Inu [SHIB] team has secured $12 million to advance the development of a new Layer 3 blockchain.
The said team has reportedly made significant progress toward a new Layer 3 blockchain with a successful $12 million fundraising round.
Shiba Team Makes New Moves
The funding, raised through the sale of its upcoming TREAT token, comes from non-US venture capital firms including Polygon Ventures, Mechanism Capital and Animoca Brands. The fundraising, which began a few months ago and concluded earlier this month, was reportedly carried out at valuations reaching $200 million.
The participation of venture capital firms and their partners will help the Shiba Inu project expand its network and “increase what Shiba Inu can really be able to do for our community,” said Shytoshi Kusama, the anonymous lead developer of Shiba Inu.
“I’ve put my heart and soul into building this, and you’re a worthless ‘fudder’ who doesn’t deserve the encouragement God gave you,” Kusama wrote on April 21, in response to a user’s criticism.
The TREAT token itself will serve a dual purpose within the Shiba Inu ecosystem, functioning as a utility and governance token for its new layer 3 blockchain.
This new layer 3 solution will be built on top of Shibarium, Shiba Inu’s existing layer 2 blockchain built on top of Ethereum. The addition to the ecosystem adds to its existing token trio of SHIB, BONE, and LEASH. Each token plays a different role within the network, and LEASH offers exclusive benefits to the most loyal Shiba Inu fans.
Despite these developments, the number of transactions on the Shiba Inu network decreased substantially. The prosperity of the Shiba Inu ecosystem may affect the sentiment around SHIB in the future.
Another factor that could affect sentiment around Shiba Inu would be the recent outage of its network. While the Shibarium mainnet is back online, some users may still experience issues due to persistent issues with external validators and services.
The developers are actively working to fix the issue and have asked external teams to improve communication for a smoother resolution.
More on Shiba Inu
The Shiba Inu team explained that “TREAT is the latest unreleased token by the popular meme brand that will unlock Shiba Inu’s recently announced new blockchain with Fully Homomorphic Encryption (FHE).” Two months earlier, Shiba Inu partnered with Zama.ai to implement FHE technology, which forms the basis of the TREAT protocol’s new privacy layer.
The funds will be used by the Panamanian Shiba Inu entity, Shiba Inu Mint S.A., to build the TREAT platform. The developers noted that potential applications of the technology include encrypted lending platforms, tokenized asset exchanges, and encrypted machine learning models.
Shiba Inu has been a high-performing memecoin, gaining 164% in the last year. Last December, the protocol introduced .shib domains for its token holders. Meanwhile, Shibarium, its Layer 2 scaling solution, has surpassed 1 million users since its inception.
Exaggeration on Social Networks
Despite these issues, the weighted sentiment towards SHIB remained high, indicating that the positive comments about SHIB had outweighed the negative ones.
Furthermore, SHIB’s social volume had also grown, suggesting an increase in popularity on all social fronts. At the time of publishing, SHIB was trading at $0.0000272 and its price had risen by 0.93% in the last 24 hours.
However, the volume at which SHIB was trading had fallen by 36.46% during the same period.
By Audy Castaneda
