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Shytoshi Kusama says Shibarium's locked Ether, BONE are safe

  • Shytoshi Kusama, the lead of the Shiba Inu ecosystem, addressed the issue of 1,000 Ether deposited on the Layer 2 chain. 
  • Kusama assured the community that the project is working with the Unification team, and Shibarium will be live once again. 
  • SHIB price started its recovery from the massive decline in response to Shibarium launch.

Shytoshi Kusama, the lead of the Shiba Inu project, addressed the issue of the Shibarium mainnet launch that resulted in 1,000 Ether and 600,000 BONE (a Shiba Inu ecosystem token) getting locked on the bridge. Crypto Twitter was rife with speculation about funds bridged to Shibarium after the Layer 2 chain’s launch. 

Kusama assured the SHIB community that the funds are secure and the developers are working with the team at Unification, a decentralized blockchain toolkit, to scale Shibarium further.

Also read: Breaking: $1.7 million worth of Ethereum stuck in Shibarium bridge as launch fails to catalyze meme coin rally

Shibarium mainnet launch: How funds got locked on the bridge 

Shibarium is Shiba Inu ecosystem’s Layer 2 scaling solution. At its mainnet launch event on Wednesday, Shibarium was flooded with user activity. Shytoshi Kusama explained in a blog post that there was an insane influx of users, while the project purchased an enterprise plan for the Layer 2, that allots 400 million compute units a month, within the first thirty minutes of launch, the statistic crossed 160 million.

Compute units

Compute units tracked by Alchemy for Shibarium

Users attempted to bridge Ether and BONE tokens to Shibarium in a rush, immediately after the chain’s mainnet release and Shibarium failed to handle all requests, halting the bridge activity. Twitter users and the SHIB community then encountered Fear, Uncertainty and Doubt (FUD) from a concerning message, allegedly written by Shytoshi Kusama. 

SHIB community has 1,000 Ether and nearly 600,000 BONE tokens on the Shibarium bridge and the team is working towards scaling the blockchain and taking it live once again, to help users access their funds. 

Shytoshi Kusama assures funds are SAFU

Kusama assured the Shiba Inu community that their funds are “SAFU” , a slang that means safe, in the crypto community. The screenshot circulated on Twitter, linked to Shytoshi Kusama and a statement made by them that the funds are lost, was false. The team is working on taking Shibarium live once again, with help from Unification.

SHIB price is $0.00000890, at the time of writing. The meme coin started its recovery from Thursday’s low of $0.00000872.

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

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.

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