Shiba Inu’s Ethereum layer-2 network, Shibarium, has made its debut, promising to tackle Ethereum’s scalability challenges. The launch follows a beta testnet phase involving 21 million users and aims to enhance transaction efficiency with lower fees.
However, the launch has been overshadowed by significant technical issues. Transactions on Shibarium were stuck in a pending state for over 5 hours, locking more than 1,003 ether ($1.8 million). Blockchain security team Beosin advised users to halt Shibarium usage, and no new transactions have been confirmed for hours.
🚨Transactions on #Shibarium are stuck in a pending state.
$1.7M are currently locked on ETH.
— Beosin Alert (@BeosinAlert) August 17, 2023
An unverified internal conversation has further fueled concerns, with a developer allegedly stating that the bridged ETH cannot be recovered.
In case yall were wondering how Shibarium is going pic.twitter.com/S5vjTxoMDk
— ʎppɐꓷ ɯooɹɥS (@shroom_daddy) August 16, 2023
The problems led to an 8.5% decline in the price of Shiba Inu and drops in associated tokens.
What Is Shibarium?
Built on a Delegated Proof-of-Stake (DPOS) mechanism, Shibarium relies on validators and delegators to run nodes and process transactions. The network is also designed to support various components of the Shiba Inu ecosystem, such as SHIB and LEASH tokens and the ShibaSwap decentralized exchange.