- SHIB token faces a 9% drop following bridging issues with the newly introduced Shibarium network.
- Users experience transactions being held up for over five hours, prompting concerns over the reliability of the network.
Bridging Woes Disrupt Shibarium’s Debut
The eagerly awaited launch of the Shibarium network, Shiba Inu’s (SHIB) newest layer 2 addition, encountered unexpected turbulence. With blockchain data painting a picture of halted transactions for a significant five-hour span, SHIB experienced a notable 9% decline in its value within just 24 hours of Shibarium going live.
The underpinnings of the challenge lay in the network’s bridging mechanism. Bridging, an integral feature in the blockchain realm, facilitates the seamless transfer of tokens across different networks. However, its importance is rivaled by its susceptibility to issues, rendering it a pivotal yet delicate component in the crypto sphere.
Given the reported challenges, users moved a combined total of 954 ether (ETH), equivalent to $1.7 million, and bone (BONE) tokens valued at $750,000 to the contract. Notably, BONE is Shibarium’s governance token, underlining its significance in the ecosystem. Attempts by CoinDesk to bridge tokens to Shibarium were met with failure, affirming the widespread nature of the reported issues.
Community Response and Shibarium’s Vision
Post the initial wave of issue reports, a clampdown on user communication was observed on the community forum hosted on Discord, with members being barred from posting messages. This move only further intensified concerns among the community.
For Shibarium, the vision has been clear since its conceptualization – transitioning Shiba Inu from its meme coin reputation to a formidable blockchain contender. Established in August 2020, Shiba Inu aims to reinvent itself and shed its meme coin image. In this endeavor, Shibarium is set to play a crucial role, heralded as the conduit to a cost-effective, thriving ecosystem.
Amidst a saturated blockchain environment, with over 50 networks vying for user attention through low fees, Shibarium is poised to primarily cater to the financial services and gaming sectors. The network strategically employs bone (BONE), SHIB, and leash (LEASH) tokens for applications on its blockchain, concentrating particularly on metaverse and gaming applications.
Yet, the initial challenges faced by Shibarium have taken a toll not just on SHIB, but its associated tokens as well. BONE observed a 13% fall, while LEASH’s value plummeted by a staggering 25%, reflecting the community’s waning sentiment.