Shiba Inu’s Shytoshi Kusama announces $2 million insurance policy for Ethereum, BONE paused on Shibarium
- Shiba Inu’s lead developer assured the SHIB community that the Ethereum and BONE paused on Shibarium is safe and insured for $2 million.
- Shytoshi Kusama shared an update revealing how developers are working with the Unification team and have identified multiple plans of action.
- Assurance on the safety of 1,000 Ether and nearly 600,000 BONE catalyzed a recovery in SHIB price on Binance.
The Shiba Inu community is reeling from the aftermath of 1,000 Ethereum and nearly 600,000 BONE being stuck on Shibarium following the Layer 2 chain’s mainnet launch on Wednesday. The tumultuous event resulted in a sharp decline in SHIB price and raised concerns in the Shiba Inu community.
SHIB’s lead developer, Shytoshi Kusama, announced a $2 million insurance policy that covers the Ethereum and BONE tokens that are currently inaccessible for users. Kusama has repeatedly assured the community that the funds are safe and the team is working on multiple plans of action to revive the blockchain and take it live once again.
Also read: Shytoshi Kusama says Shibarium's locked Ether, BONE are safe
Ethereum and BONE paused on Shibarium insured for $2 million
In an attempt to address the fear, uncertainty and doubt (FUD) in the Shiba Inu community, the project lead, Shytoshi Kusama, has announced a $2 million insurance policy for tokens paused on the Shibarium bridge.
In his update on Thursday, Kusama assured the SHIB community that their funds are safe and addressed a false screenshot being circulated all over Twitter. Find out more about the update here.
Kusama informed the community that the insurance would further allay their concerns, while developers work on solutions to recover the Shibarium chain. Shiba Inu’s developers are working in conjunction with developers from the decentralized blockchain toolkit Unification.
Once Shiba Inu ecosystem’s scaling solution Shibarium is live again, funds paused on the bridge are likely to be available for recovery. In the unlikely event that there is another incident that results in funds staying “paused,” the $2 million insurance is set to act as a tool to make users whole again.
Shiba Inu price recovery catalyzed by assurance of fund recovery
SHIB price started its recovery from the August 17 low of $0.00000725, rising to $0.00000841 at the time of writing. The $2 million insurance policy has acted as a bullish catalyst for the meme coin.
SHIB price is back above key resistance at $0.00000800 on Binance.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
