Shiba Inu’s Shytoshi Kusama announces $2 million insurance policy for Ethereum, BONE paused on Shibarium


  • Shiba Inu’s lead developer assured the SHIB community that the Ethereum and BONE paused on Shibarium is safe and insured for $2 million. 
  • Shytoshi Kusama shared an update revealing how developers are working with the Unification team and have identified multiple plans of action. 
  • Assurance on the safety of 1,000 Ether and nearly 600,000 BONE catalyzed a recovery in SHIB price on Binance.

The Shiba Inu community is reeling from the aftermath of 1,000 Ethereum and nearly 600,000 BONE being stuck on Shibarium following the Layer 2 chain’s mainnet launch on Wednesday. The tumultuous event resulted in a sharp decline in SHIB price and raised concerns in the Shiba Inu community.

SHIB’s lead developer, Shytoshi Kusama, announced a $2 million insurance policy that covers the Ethereum and BONE tokens that are currently inaccessible for users. Kusama has repeatedly assured the community that the funds are safe and the team is working on multiple plans of action to revive the blockchain and take it live once again.

Also read: Shytoshi Kusama says Shibarium's locked Ether, BONE are safe

Ethereum and BONE paused on Shibarium insured for $2 million

In an attempt to address the fear, uncertainty and doubt (FUD) in the Shiba Inu community, the project lead, Shytoshi Kusama, has announced a $2 million insurance policy for tokens paused on the Shibarium bridge.

In his update on Thursday, Kusama assured the SHIB community that their funds are safe and addressed a false screenshot being circulated all over Twitter. Find out more about the update here.

Kusama informed the community that the insurance would further allay their concerns, while developers work on solutions to recover the Shibarium chain. Shiba Inu’s developers are working in conjunction with developers from the decentralized blockchain toolkit Unification. 

Once Shiba Inu ecosystem’s scaling solution Shibarium is live again, funds paused on the bridge are likely to be available for recovery. In the unlikely event that there is another incident that results in funds staying “paused,” the $2 million insurance is set to act as a tool to make users whole again. 

Shiba Inu price recovery catalyzed by assurance of fund recovery

SHIB price started its recovery from the August 17 low of $0.00000725, rising to $0.00000841 at the time of writing. The $2 million insurance policy has acted as a bullish catalyst for the meme coin.

SHIB price is back above key resistance at $0.00000800 on Binance.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP