Immediately after the launch of Shibarium, Shiba Inu’s L2 solution for Ethereum, the network experienced difficulties that negatively affected the prices of SHIB, BONE, and LEASH tokens. A FUD effect is spreading within the crypto community amid rumors of technical bugs in the new network.
The Shiba Inu project team announced that Shibarium, the mainnet of the Layer 2 protocol for Ethereum, had officially launched. More than 21 million addresses were connected to the network at the time of the mainnet’s launch.
The Shibarium network is based on a new consensus mechanism, Proof-of-Participation (PoP), that selects validators in proportion to the amount of assets they hold. In order to become a validator of the Shibarium network, you need to block 10,000 BONE tokens. A total of 21 million BONE will be locked on the network to be used to reward validators and pay for gas. The new L2 solution is designed to reduce the load on the Ethereum mainnet and lower the commission costs of exchanging tokens.
Shortly after the launch, one of the Shiba Inu developers shared information about the companies that were developing products on Shibarium — over 100 different projects and organizations were listed.
Many Shiba Inu holders expressed hope for a sharp rise in the prices of the project’s native tokens. Thus, ahead of the launch of the Shibarium mainnet, SHIB rose to a new multi-week high, adding about 4% to its value. However, immediately after the mainnet’s launch, the prices of the network’s tokens began to drop precipitously. According to CoinGecko data, the prices of these tokens have dropped over the past 24 hours:
- Shiba Inu (SHIB) lost 8% of its value;
- Bone ShibaSwap (BONE) fell by 19%;
- Doge Killer (LEASH) dropped 22%.
Even though the developers of Shibarium had been actively testing the network for several months before the public launch, the network failed to meet the expectations of the crypto community. The price drop occurred amid the growing FUD effect, which was caused by rumors about the presence of technical errors in Shibarium’s code.
A message on X stated that Shibarium developers were unable to restore the transferred assets to the network. In the presented screenshots of internal conversations in Telegram, the network’s lead developer informs the team about the existing problems.
Against this news, some blockchain experts started their independent investigations, publishing various assumptions. For example, ZachXBT claims that key client nodes of the network are “dead.” Other members of the crypto community hint that network bugs could lead to the loss of $2.46 million worth of tokens blocked on Shibarium.
The team of developers doesn’t comment on the rumors.
Shiba Inu is one of the biggest meme coins, which has formed a large community of followers called ShibArmy.
