Kusama Shytoshi, the developer of Shiba Inu (SHIB), does not want the SHI stablecoin to suffer the same fate as TerraUSD (UST). Here are the latest comments from the SHIB developer…
SHIB developer talks about new stablecoin
Shiba Inu lead developer Shytoshi Kusama noted that after Terra’s algorithmic stablecoin TerraUSD (UST) split from the US dollar pegged, the project was cautious about the development of its stablecoin SHI. The Shiba Inu team chose to tread carefully in the development of SHI to avoid a repeat of the Terra ecosystem collapse that wiped out billions of dollars from the market. Shytoshi used the following statements:
Needless to say, Shi became alarming after watching other stablecoins collapse and billions of dollars completely wiped from the market.
Kusama acknowledged that several SHI proposals have been submitted by developers, adding that these proposals are designed to avoid these problems inherent in failing stablecoins. Kusama explained that his developer group will allow Shi to be used to offset payments that need to be made without market fluctuations. According to SHIB’s lead developer, the project’s upcoming stablecoin will be an experimental project like all other Shiba Inu startups in the past.
SHI development nearing completion
The team behind Shiba Inu has continually tipped the community about the SHI stablecoin. As announced by Kusama in May 2022, SHI is still in development, alongside three other components of Ryoshi’s vision, including Shibarium and SHIBFE. However, it is scheduled to be completed this year. As we reported on Kriptokoin.com, Kusama said in a blog post published in May, “I can’t give an exact date right now.” “But I expect to see one or more of these technologies before the end of summer,” he said.
Unlike most stablecoins pegged to $1, SHI is an algorithmic stablecoin pegged to 1 cent. The stablecoin will run on both Ethereum and the layer-2 Blockchain Shibarium. “The ultimate goal is to make SHI a global stablecoin that anyone can use as both a store of value and a payment method,” said Ryoshi, founder of Shiba Inu.
SHI was close to being officially released. However, the collapse of Terra’s UST signaled to the Shiba Inu team that caution is needed to avoid creating a collapsing stablecoin like TerraUSD. Kusama assured SHIBArmy members that more detailed information on SHI will be released later this year. Meanwhile, the Shiba Inu is currently up 0.4 percent at $0.00001044. The cryptocurrency has gained 4.6 percent in the last 7 days.
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