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News/Shocked Community Suffers as Shibarium Network Fails to Meet Expectations

Shocked Community Suffers as Shibarium Network Fails to Meet Expectations

Aug 17 2023

7 months ago3 minutes read
robot shocked when getting its assets stuck during shibarium glitch

Shibarium Launch Stumbles Amid High Expectations

Written by Van

Shiba Inu's much-hyped layer 2 network, Shibarium, faced a series of challenges on its day of the mainnet launch. Beosin, a leading blockchain security firm, reported that about $1.7 million of Ethereum became trapped in the bridge contract. This glitch led to a backlog of pending transactions on the newly inaugurated network, potentially affecting the Ethereum market cap.

The network was also plagued with a series of issues. Stuck transactions and ineffective features, including Remote Procedure Call and block scanners, drew widespread criticism from the community. Notably, ZachXBT, an on-chain detective, dubbed the launch as "sloppy," stating the execution failed to meet expectations.

beosin tweet.webp
Source: Beosin Alert/ X

Additional problems came in the form of BONE tokens, valued at approximately $762,000, getting trapped in the bridge contract. Consequently, this pushed the total value of assets locked within the contract to approximately $2.5 million.

This spate of issues prompted Lucie, Shiba Inu's marketing executive, to caution the community on potential dangers. Lucie warned of the possibility of devious actors creating scam decentralized applications (dApps) and rug-pull tokens on Shibarium. Lucie also underscored the importance of diligent research before investing in any Shibarium-backed project, emphasizing the need to comb through community channels and scrutinize social media posts.

Amid the chaos, a screenshot purportedly showing Shytoshi Kusama, Shiba Inu's lead developer, surfaced. The message in the screenshot had Kusama acknowledging the mishaps with words, "We f*ed up hard, we can’t recover the ETH bridge." However, the authenticity of this alleged internal Telegram chat message has not been verified yet.

shroom daddy tweet.webp
Source: Shroom Daddy/ X

As it stands (1:45 PM UTC Thursday), both the Shibarium RPC and ShibariumScan websites remain inaccessible. Evidence of network issues continued to emerge with U.Today reporting that the last block was added six hours ago, with several preceding blocks still awaiting import.

utoday screenshot (1).webp
Source: U.Today

These launch issues have invariably left a dent in the crypto price performance of Shiba Inu-related tokens, reflecting the market's sensitivity to technical mishaps. Both BONE and SHIB tokens experienced a severe dip, emerging as glaring casualties of the botched Shibarium launch.


Whale's Maneuvers Amid Shibarium Hitch

During the Shibarium network's faltering launch, involvements of significant figures or 'whales' attracted close attention. One such occurrence involved the active trading of SHIB, BONE, and PEPE tokens. The transactions, tracked by Lookonchain, a reputable on-chain platform, revealed the whale selling a substantial 979,469 BONE tokens and gaining 787 ETH in return. This transaction, computed at the rate of $1.47 per BONE token, amounted to a hefty $1.44 million.

lookonchain tweet.webp
Source: Lookonchain/ X

Met with less fortunate timing, the same whale invested $1.28 million to buy 1.07 trillion PEPE tokens. Meanwhile, rumored technical issues on the new Shibarium network sent SHIB and BONE token prices plummeting. This Ethereum-based layer 2 solution for the Shiba Inu ecosystem had been suffering from unresolved glitches at the time.

Having anticipated a profitable rally post-launch, the price nosedive left the SHIB and BONE holders sorely disappointed. Lead developer Shytoshi Kusama and other Shiba Inu developers were reportedly grappling with the intricate task of retrieving assets bridged to the troubled Shibarium network.

As the issues escalated, Shiba Inu devotees faced growing panic. As a result, the community saw a sudden sell-off of both BONE and SHIB tokens. In the 24 hours following the Shibarium launch, the BONE token price slumped by 24.7%, trading at a meager $1.2719 - signifying an over 11% daily loss. 

chart.webp

The SHIB token also felt the sting with an 8.61% fall, exchanging for a mere $0.00000917. 

chart (1).webp

LEASH, another token within the Shiba Inu ecosystem, suffered an 18% drop during the day.

chart (2).webp

What unfolded was a stark reflection of the community's dismay and anxiety stemming from the botched network launch, leading to fluctuations in crypto coin prices, particularly for SHIB and BONE tokens. 

The large-scale movements by the whale and consequent fluctuation of token prices underscore the susceptibility of crypto markets to technical hitches and uncertainties. Yet, as noted by crypto analytic firm Santiment, whales often try to "capitalize on discount prices."

santiment tweet.webp
Source: Santiment/ X

This incident also underlines how tokens like BONE and SHIB, in a specific ecosystem like Shiba Inu, are interconnected. The missteps during Shibarium's launch and the ensuing sour market sentiment have raised apprehensions about its potential for successful future integration and usage. With uncertainty looming large, the implicated communities wait and watch.


Deep Dive into Ratings, Market Trends, and Future Perspectives 

Shiba Inu and Its CertiK Ratings

Shiba Inu (SHIB), the meme-based cryptocurrency, owes a substantial part of its thriving market position to the backing of its resilient community. Web3 security behemoth, CertiK Skynet, hands out an 'AA' ranking to SHIB, attributing it a robust security index of 91.37 out of a perfect 100. 

SHIB-score-AA-certik (1).webp
Source: CertiK

The SHIB token now stands at the 44th rank as per the CertiK's index, thrusting it within the high-ranking 10% of the global cryptocurrencies, a position that can be visualized on various cryptocurrency charts. A well-earned position, indeed. The stellar rating peers into different aspects of SHIB's score sheet:

  • Fundamental Health: 73.75
  • Governance Strength: 92.97
  • Operational Resilience: 93.07
  • Community Trust: 93.52
  • Code Security: 94.28
  • Market Stability: 96.15

However, Shibarium, a treasured project within the Shiba Inu ecosystem, tripped on a stumbling block—an internal glitch. This misstep, blamed on the Shibarium team, carries the potential to influence both SHIB's revered rating and its market price.

A Keen Eye on Crypto Analyst's Outlook on SHIB

Prospect-gazing cryptocurrency analyst, Michael Van De Poppe, envisions a flourishing path for SHIB. On Wednesday, he predicted a potential surge amounting to a 30% rally if SHIB manages to stay anchored at crucial support thresholds. 

Breaking down the numbers, the prospective ceiling stands at $0.000013, signifying a 30% leap from the contemporary rate of a humble $0.00000918. For this bullish trend to take place, SHIB must hold on tight to these crucial support echelons: $0.00000808, $0.00000870, and $0.00000941.

However, rolling out of the Shibarium network, another feather in SHIB's cap, stumbled at the launch. The network's inauguration, marred by issues related to asset bridging, forced SHIB's price to yield an 8% surrender. A solemn reminder that the crypto market is as vulnerable to technological glitches as it is resilient.


Shibarium's Rocky Launch – Insights from Shytoshi Kusama

The newly launched Shibarium, a crucial blockchain layer of the Shiba Inu ecosystem, experienced unforeseen technical obstructions as it faced an unprecedented surge in user involvement shortly after going live. 

The challenge, as confirmed by Shytoshi Kusama, the lead orchestrator of Shiba Inu, was unexpected but did not place user assets under threat. Instead, the issues primarily stemmed from the massive traffic spike following the official announcement of Shibarium's launch.

Dissecting what went wrong during the execution, Kusama stated these technical troubles were not indicative of inherent faults in Shibarium. Instead, they were a consequence of the enormous surge in user activity and transactions that unexpectedly swamped the network. 

Highlighting the magnitude of the situation, Kusama mentioned that the blockchain had an allocation of 400 million compute units each month based on their enterprise plan. Still, within half an hour after the launch, the new blockchain had already registered over 160 million compute units.

shibarium dog (1).png

If sustained, this trend would explode in billions of compute units within a single day, catapulting Shibarium amongst the ranks of the most active Layer 2 blockchains. One palpable sign of this boost in activity was the swift deposit of 1,000 Ethereum (ETH) and 600,000 BONE tokens into the newly-minted chain, all within a mere 15 minutes of the launch.

With the blockchain grappling with this unanticipated deluge, Kusama appealed to the community, urging for patience as the team works with specialized partners such as Unification. The intent is to bolster infrastructure capabilities and better accommodate the unexpected transaction volume brought about by the massive influx of users.

In addition to handling the technical woes, Kusama also underscored the importance of vigilance amidst the burgeoning online landscape. Encouraging users to debunk baseless gossip, he stressed the need to verify the authenticity of any Shibarium-related links before engaging.

His caution came in response to allegedly misleading screenshots circulated on social media platforms. These images falsely attributed Kusama acknowledging Shibarium's launch as a failure due to the technical issues encountered. This disinformation had a substantial adverse impact on the SHIB's market value, triggering a notable decline in its price.


Shibarium Network Restarts after a Temporary Halt

Following a nearly day-long break in operations, the Shiba Inu Layer 2 Shibarium network has resumed the production of blocks. The temporary pause came as operations on the Shibarium network had to enter a fail-safe mode due to an unprecedentedly high volume of traffic post-launch. 

block production.webp
Source: Shibariumscan.io

Lead developer at Shiba Inu, Shytoshi Kusama, confirmed that while a large amount of traffic did indeed pose significant challenges, the security of the funds remained unaffected.

Despite the need for a swift restart, both the bridge and the chain were running smoothly after the network was prepared for a rapid restart.

To further accommodate the substantial traffic on Shibarium which is a Polygon fork, developer Kaal Dhairya laid out his plans for scaling. To address any potential difficulties in fund retrieval upon restarting, the project secured insurance coverage to the tune of $2 million.

The ShibArmy community viewed the situation with a pinch of salt. Expressing concerns about the spread of FUD or Fear, Uncertainty, and Doubt, the community realized its potential impact on the project.


Amidst Shibarium Launch, BONE Staking Remains Unfazed

Despite the negative sentiment that surrounded the launch of Shibarium, the Shiba Inu universe saw a silver lining. Even amid a barrage of negative press and an unfortunate decline in the token price, the Shiba Inu team maintained a tenacious outlook, focusing on their ecosystem's resilience and potential.

Contrary to the backdrop of a hesitantly cautious market, SHIB community members worldwide continued to stake notable amounts of Bone Shibaswap (BONE). This trend was intriguing, especially given that the BONE token took a hit, losing over 23% of its value within the last week.

Lucie, an official from the SHIB ecosystem, provided an update, revealing the staking of a whopping 5,499,844.1965 BONE as of August 17. 

Several active stakers, including Unification (FUND), Shibarmy Oregon, Shibarmy Ireland, and Shibarmy N.Virginia, contributed their fair share of BONE stakes, thus demonstrating their sustained support for the ecosystem despite the temporary setback.

lucie tweet.png
Source: Lucie/ X

FAQs

1. What is the Shibarium network?

Shibarium is an Ethereum-based layer-two solution for the Shiba Inu ecosystem, designed to increase the performance and scale of the Ethereum network.

2. What happened during the Shibarium network launch?

The launch experienced a glitch that led to approximately $2.5 million worth of assets being locked in the bridge contract, causing stuck transactions and resulting in a market panic and selling spree.

3. How did this incident affect the Shiba Inu tokens?

The glitch during the launch resulted in price drops of SHIB and BONE tokens, with BONE trading at a 24.7% loss within 24 hours of the launch and SHIB dropping by 8.61%.

4. How did the glitch affect the wider crypto market?

The uncertainty caused by the failed launch led to price volatility. However, some large-scale investors capitalized on discount prices following the drop.

5. What are the future prospects for the Shibarium network?

While this setback has raised concerns about Shibarium's future success and adoption, it's crucial to note that technical glitches are not uncommon in the crypto world. Recovery from such incidents and preventive measures for future scenarios will play a significant role in determining the network's ultimate success.


Final Thoughts

In conclusion, the unexpected glitch during the Shibarium network launch cast a pall over Shiba Inu’s ecosystem. The technical issue led to price drops in Shiba Inu’s tokens, precipitating a market panic. This incident revealed the market's fragility when facing unexpected technical errors. 

Despite this setback, the crypto market's inherent volatility coupled with the possibility of price normalization presents potential buying opportunities for crypto whales. It remains to be seen how the Shiba Inu community navigates this hiccup and the subsequent impact on the planned adoption of the Shibarium network.

This article has been refined and enhanced by ChatGPT.

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