In a turbulent launch event on Wednesday, the Shibarium layer 2 network found itself grappling with a significant setback. Data from the on-chain revealed that a substantial amount of assets, at least 1000 Ether (ETH) valued at $1.7 million, became trapped within the network.
Users had attempted to transfer these funds using a bridge, a tool facilitating the movement of assets across different blockchain networks.
As the situation unfolded, transactions on the blockchain were halted for over four hours, leaving users frustrated. Additionally, $750,000 worth of the Shibarium governance token, referred to as BONE, was sent to a smart contract, entwining these funds with the immobilized ETH tokens.
Shortly after the chaotic commencement, users reported being blocked from sending messages on the project’s Discord server. Unverified rumors also circulated, suggesting that the developers were struggling to recover the locked assets.
ZachXBT, a notable on-chain investigator, criticized the launch, describing it as “sloppy.” This sentiment was echoed by other crypto enthusiasts, who took to social media platforms like Twitter to voice their discontent.
In case yall were wondering how Shibarium is going pic.twitter.com/S5vjTxoMDk
— ʎppɐꓷ ɯooɹɥS (@shroom_daddy) August 16, 2023
Subsequently, the value of Shiba Inu (SHIB) tokens dropped by more than 8%, a consequence of the tumultuous rollout.
The Shibarium network, initially proposed in 2021 by its anonymous creator Ryoshi, aimed to transform the utility of SHIB tokens from their meme-based origins to a speedy blockchain offering cost-effective decentralized financial services for web3 users.
The network’s focus revolved around building an ecosystem for gaming apps and metaverse activities. Key tokens within the ecosystem included BONE for governance, and SHIB and LEASH for fees and dapp operability.
Despite the rocky start, the community remains hopeful that these challenges can be overcome, allowing the project to deliver on its promises.