On previous occasions, I’ve been “corrected” by the Shiba Inu (CCC:SHIB-USD) community about my concerns for the altcoin’s utility.
The correction is usually followed by a breathtaking, and sometimes seemingly contradictory, list of how Shiba Inu will take over the world (and why I’m a bad parent for not investing my children’s college fund in the altcoin).
But I don’t want to get into more debates about Shiba Inu. It’s reached the point where, as with a good sports debate, both sides have their heels firmly dug in.
So let me explain what I mean when I say I’ve found some remarks about Shiba Inu’s utility to be contradictory.
There seem to be two paths to an altcoin’s success (however you define that). The first is that the coin gains widespread adoption as a form of payment. This has been the path that Dogecoin (CCC:DOGE-USD) and SHIB have taken.
However, it seems to me that the more intriguing and perhaps more viable path is as a blockchain solution in and of itself. That’s the ambition behind Shibarium.
Why Is Shibarium Important?
If you’re a member of the Shib army, indulge me as I briefly give the unfamiliar some background. Shiba Inu is a token that runs on the ECR-20 network of the Ethereum (CCC:ETH-USD) blockchain, otherwise known as the Ethereum mainnet.
Ethereum is known as a layer 1 blockchain, but, as with all layer 1 blockchains, it has its issues most notably in terms of scalability. That’s why there is interest in building layer 2 blockchains. However, at this time, no layer 2 solutions are widely adopted.
That’s where Shibarium comes in.
According to the Shiba Inu white paper, “Shibarium is the next development of SHIB’s ecosystem. It will give SHIB its own blockchain with a lot of benefits of crypto 2nd generation including speeding transactions, eco-friendly PoW system for authentication, self-management storage per size in the blockchain and full governance.”
Shibarium will have its own native stable coin, called SHI. This will provide Shiba Inu with a proprietary solution to the high fees that are part of SHIB which is an ERC-20 token.
To my way of thinking, Shiba Inu entering the blockchain discussion in a serious way could be a real catalyst. That’s why it’s important that Shibarium launches. And that’s where the story gets a little tricky.
At this time, there is no launch date set for Shibarium. However, the developer says that the project will be launching “soon.” And in the same tweet, the developer remarked:
“Those who trusted the project pre-swap were successful post-swap … A timeline is not needed when you trust a project. That’s how Shib has worked until now and will keep being like this.”
I’m not sure about you but hearing the words “a timeline is not needed” raises at least a caution flag with me. Am I suggesting that Shibarium won’t launch or that Shiba Inu is stringing investors along?
Not yet. But without some sort of accountability, they could delay the launch of Shibarium indefinitely. And before you accuse me of misrepresenting things, I have quoted directly from the developer.
Shiba Inu Remains a Case of Trust but Verify
The SHIB army is a tight-knit community. And it seems that, for now, the community has complete faith in the idea that Shibarium will launch … at some point. But without a hard (or even a soft) deadline, this is a story that could end badly for this altcoin community.
In a previous article, I’ve suggested that it’s time for the community of these altcoins to start expecting more. The launch of Shibarium seems like an ideal time for SHIB investors to demand more specifics. There’s no time like the present.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.