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Blockchain

Shiba Inu’s Shibarium Network Faces Challenge Led To SHIB Drops Over 8%

August 17, 2023 - Around 2 mins mins to read

Key Points:

  • Shiba Inu’s layer-2 network, Shibarium, halts block production, sparking security worries.
  • Challenges arise in recovering trapped crypto assets on the network’s bridge.
  • SHIB, BONE, and LEASH tokens plummet in value as blockchain problems lead to sell-offs.
Shiba Inu’s Layer-2 Shibarium network has once again hit a stumbling block as block production came to a halt due to technical issues.
Shiba Inu's Shibarium Network Faces Challenge Led To SHIB Drops Over 8%

Developers of the Shiba Inu project are actively seeking solutions to rectify this situation and address blockchain-related problems, including the recovery of cryptocurrency assets trapped on the bridge.

This recurrence of trouble within the mainnet, mirroring issues seen in the testnet following its launch, has prompted concerns from the cryptocurrency community regarding the security, safety, and scalability of the blockchain network.

Shibarium initially went live today but encountered block production stoppages shortly thereafter. Although production resumed for a brief period, it again ceased operations. Notably, the last transaction on the network was recorded at 5:43 AM UTC on August 17.

Shiba Inu's Shibarium Network Faces Challenge Led To SHIB Drops Over 8%
Source: shibariumscan.io

In response to these troubles, large holders and traders have been offloading their SHIB, BONE, and LEASH tokens, causing market values to tumble. SHIB has dipped over 8% in the past 24 hours, BONE has suffered a 19.5% drop, and LEASH, a token tied to staking rewards, took the hardest hit with a 21.7% decline.

Shibarium was designed to enhance the Shiba Inu blockchain by implementing a layer-2 solution, thereby reducing gas fees and expediting transactions.

Despite these intentions, an alleged screenshot of an internal Telegram conversation involving Shiba Inu’s lead developer, Shytoshi Kusama, and other team members indicates difficulties in retrieving assets bridged to the Shibarium network.

Concerns have escalated as approximately $1.7 million worth of ETH remains trapped in the bridge. In light of this, blockchain security firm Beosin advises users to temporarily refrain from using Shibarium.

As the Shiba Inu team works to resolve the issues, rumors circulate that the stuck ETH might be irretrievable, compounded by reports of nonfunctioning Shib Mainnet RPC.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

BONE

Layer 2

LEASH

SHIB

Shiba Inu

Shibarium

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Blockchain

Shiba Inu’s Shibarium Network Faces Challenge Led To SHIB Drops Over 8%

Key Points:

  • Shiba Inu’s layer-2 network, Shibarium, halts block production, sparking security worries.
  • Challenges arise in recovering trapped crypto assets on the network’s bridge.
  • SHIB, BONE, and LEASH tokens plummet in value as blockchain problems lead to sell-offs.
Shiba Inu’s Layer-2 Shibarium network has once again hit a stumbling block as block production came to a halt due to technical issues.
Shiba Inu's Shibarium Network Faces Challenge Led To SHIB Drops Over 8%

Developers of the Shiba Inu project are actively seeking solutions to rectify this situation and address blockchain-related problems, including the recovery of cryptocurrency assets trapped on the bridge.

This recurrence of trouble within the mainnet, mirroring issues seen in the testnet following its launch, has prompted concerns from the cryptocurrency community regarding the security, safety, and scalability of the blockchain network.

Shibarium initially went live today but encountered block production stoppages shortly thereafter. Although production resumed for a brief period, it again ceased operations. Notably, the last transaction on the network was recorded at 5:43 AM UTC on August 17.

Shiba Inu's Shibarium Network Faces Challenge Led To SHIB Drops Over 8%
Source: shibariumscan.io

In response to these troubles, large holders and traders have been offloading their SHIB, BONE, and LEASH tokens, causing market values to tumble. SHIB has dipped over 8% in the past 24 hours, BONE has suffered a 19.5% drop, and LEASH, a token tied to staking rewards, took the hardest hit with a 21.7% decline.

Shibarium was designed to enhance the Shiba Inu blockchain by implementing a layer-2 solution, thereby reducing gas fees and expediting transactions.

Despite these intentions, an alleged screenshot of an internal Telegram conversation involving Shiba Inu’s lead developer, Shytoshi Kusama, and other team members indicates difficulties in retrieving assets bridged to the Shibarium network.

Concerns have escalated as approximately $1.7 million worth of ETH remains trapped in the bridge. In light of this, blockchain security firm Beosin advises users to temporarily refrain from using Shibarium.

As the Shiba Inu team works to resolve the issues, rumors circulate that the stuck ETH might be irretrievable, compounded by reports of nonfunctioning Shib Mainnet RPC.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.