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The lead developer for the Shiba Inu network Shytoshi Kusama has made a revelation they are working to launch a Shiba Inu stablecoin SHI.
This announcement comes at a time when the demand and need for stablecoins are growing in the market.
What are Stablecoins?
Stablecoins are crypto assets with stable pricing. This is because they are normally pegged to an existing asset such as the dollar. However, there is also a recent development where the stability of these coins is maintained through an algorithm that automatically balances demand and supply.
Some of the most common and largest stablecoins in the market include Tether (USDT) and USD Coin (USDC).
However, stablecoins have had their fair share of challenges, especially with the recent crash of algorithm stablecoins Terra (LUNA). This came after the coin algorithm price stabilization failed to maintain the peg price.
As a result, the coin fell over 99% collapsing almost to zero within a few days.
Shiba Inu Stablecoin SHI
In the announcement, Shytoshi implied SHI could be ready by the end of the year. He also noted the coin would be void of the challenges that have been facing the previous stablecoins such as LUNA. However, it is difficult to ascertain this until the coin hits the market and users experience it.
The launch of the coin will likely happen later this year. However, Shiba is known for giving optimistic timelines that later suffer from the extension. A key example is the launch of the much famous shibarium layer 2 blockchain network that is yet to happen.
Although there is not much information available on how the SHI stablecoin will operate, there is a likelihood it will act as a trading base on the Shiba network platforms such as Shibaswap and shibarium wallet.
This announcement also confirms that Shiba is striving to create an ecosystem full of blockchain solutions such as NFTs, Metaverse products, Cryptocurrency coins, and now the Stablecoin.
The likely effect of this is a value addition to the Shiba Inu coin as more investors and users consume these services.