Shiba Inu plans to use $12 million to develop a Layer-3 blockchain

Shiba inu coin news today:

Shiba Inu allocated $12 million funds by token sale, which will used for the development of Layer-3 blockchain named Shibarium.

In April 2024, the Shiba Inu team achieved a remarkable milestone by raising $12 million through a token sale. This funding is earmarked for the development of Shibarium, a groundbreaking Layer-3 blockchain.

Shibarium envisioned as a Layer-3 blockchain sitting atop the Ethereum network. Layer-3 solutions aim to tackle the scalability challenges of Ethereum by processing transactions off-chain and settling them on the main chain. Shibarium boasts key features like privacy, utilizing fully homomorphic encryption (FHE) technology for enhanced transaction privacy, and security, with support from cryptography experts at Zama. Moreover, it aims to boost regulatory compliance to attract institutional investors.

The $12 million was raised through the sale of a new token named TREAT. Notably, the investors were non-US strategic partners, including big names like Polygon Ventures, Mechanism Capital, and Animoca Brands.

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This fundraising marks a significant leap for the project. Shibarium, once implemented, could offer a more scalable and privacy-centric platform for future Shiba Inu ventures, potentially widening its user base. The involvement of established venture capital firms indicates growing institutional interest in the Shiba Inu ecosystem.

But there are considerations. Shibarium is still in development, and its success hinges on technical execution and user adoption. The use of FHE (fully homomorphic encryption) for privacy features is innovative but untested in the real world. Moreover, the long-term impact on the value of SHIB tokens remains uncertain, dependent on various factors.

In summary, the Shiba Inu fundraising for Shibarium represents an ambitious endeavor. While it holds the promise of propelling the project forward, there are significant technical and market challenges to navigate.