Shiba Inu (SHIB), the popular memecoin, has secured $12 million through a token sale for its upcoming TREAT token. This funding, aimed at developing a new privacy-focused blockchain, has generated some intrigue due to investor locations and the token’s purpose.
Investment Round and TREAT Token
The Shiba Inu team raised the funds by selling TREAT, an unreleased “utility and governance token” for their new Layer 3 blockchain built on Shibarium, their Ethereum Layer 2 solution. This token round, a mix of pre-seed and seed funding, reportedly occurred in tranches with valuations ranging from $75 million to $200 million.
However, some investors listed, such as Mechanism Capital and Shima Capital, appear to be U.S.-based. While Shiba Inu’s lead developer, Shytoshi Kusama, maintains none are from the U.S., questions linger about full entity disclosure. TREAT is expected to be the final non-stablecoin in the Shiba Inu ecosystem, joining SHIB, BONE (Shibarium’s governance token), and LEASH (a loyalty token).
Privacy-Focused Blockchain with FHE Technology
The key feature of this new blockchain is its focus on privacy. Shiba Inu is leveraging fully homomorphic encryption (FHE) technology from Zama, a recently funded cryptography company. FHE allows for data encryption even during processing, a significant advancement in the field. This “holy grail” of cryptography aims to address privacy concerns within Shiba Inu’s vast community and attract new crypto users.
Also Read: Shiba Inu’s Shibarium Hit by Temporary Outage, Network Growth Still Booming
Compliance and Security Concerns Addressed
Regulatory compliance is a priority for Shiba Inu’s new blockchain. “We strive for a project that adheres to international law while safeguarding user data privacy and security,” Kusama stated. Their system reportedly allows for both privacy and verifiable identity, aiming to enhance security and compliance simultaneously.
Transparency and Next Steps
To prevent scams involving fake TREAT tokens, Kusama has withheld the official Layer 3 blockchain’s name. A testnet launch is scheduled for Q3 2024, with the mainnet following after thorough testing.
This $12 million investment signifies Shiba Inu’s commitment to expanding its ecosystem beyond memecoin status. The TREAT token’s utility within their privacy-focused blockchain promises an exciting development, but questions regarding investor locations and the new blockchain’s name remain to be addressed fully.
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