After TerraUST of the USD was devalued and crashed to $0 in May, investors viewed stablecoins with “skeptical eyes.” Investor community confidence in the functioning of stablecoins waned after the abuses of Luna founder Do Kwon came to light. The lead developer of ShibaSwap, Shytoshi Kusama, confirmed in a Medium blog post yesterday that the Shiba Inu team is working on the launch of SHI stablecoin. He revealed that SHI would launch in late 2022.
However, in his blog post, Shytoshi brought up the topic of TerraUST and assured investors that the team is working to prevent Terra Luna’s mishaps. He confirmed that SHI developers had submitted a version that prevented the stablecoin from collapsing.
Also read: Here’s How Many ‘Zeros’ Shiba Inu Removed From July 2021 To 2022
“So as for SHI, we’ve seen independent development from a group of developers in our decentralized network. They submitted a version of SHI that seems to avoid the problems of other moonshots,” he said. Shytoshi added, “While SHI can be used to counter and balance payments that need to be made without market fluctuations.”
However, he called SHI stablecoin a “experimental protocol” and confirmed he was also concerned after seeing TerraUST collapse. “Needless to say, SHI is a concern after seeing other stable tokens collapse and wipe out billions of dollars from the market completely.”
Shytoshi hasn’t mentioned a tentative release date for SHI, but confirmed it would be out in 2022. “No crazy issues, this should be released in 2022”, he said on the blog.
Also read: Shiba Inu: Community Projects Up 99% in July; Is it attainable?
Shiba Inu: SHI Stablecoin
Shytoshi has not revealed more details about SHI in his blog, but stated that more information would be forthcoming upon completion. “More detailed and complex information will be released about this token once it is completed”, he said.
SHI will be pegged 1:1 to the USD, similar to other algorithmic stablecoins. Read here to know more details about SHI stablecoin in terms of functionality.
Also read: Shiba Inu TREAT Token: Here’s Everything We Know
At the time of the press, Shiba Inu traded at $0.000001054 and is valued 1.6% in the last 24 hours. However, the dog-themed token fell 88% from its all-time high of $0.00008616 in November last year.