The cryptocurrency market has recently witnessed a significant plunge in the value of SHIB, BONE and LEASH tokens due to circulating rumours of a substantial technical error within the newly launched Shibarium network. Shibarium is a Layer-2 scaling solution for the Ethereum network and its shaky start seems to have taken a toll on the prices of its associated tokens.
Prior to its launch, many holders of Shiba Inu’s token SHIB, Shibarium’s governance token BONE, and the LEASH token anticipated a notable value increase. However, the reality has been disappointing. Over the previous 24 hours, SHIB’s price has fallen by over 8%, whilst BONE and LEASH have decreased by more than 14% and 23% respectively.
The price dip coincided with reports of possible issues with the network’s launch. Allegedly, an internal conversation between Shibarium developers indicated that assets bridged to the Shibarium network could not be retrieved. According to blockchain expert ZachXBT, while it’s unconfirmed whether the assets are truly lost, the RPC node, a fundamental component in running key blockchain client software, appears to be non-operational, and the block explorer has been described as poor.
In addition, the community now suspects a flawed bridge, with locked funds approximated to nearly $2.46 million, composed of approximately $1.7 million worth of Ether and roughly $762,000 worth of BONE.
The recent regulatory acceptance for Coinbase, the largest digital asset exchange in the U.S., to offer crypto futures to its U.S. retail customers is another crucial event. Many view this approval as a considerable legal triumph, particularly in light of the ongoing battle with the country’s securities regulator. Coinbase’s newfound ability to operate a Futures Commission Merchant (FCM) platform presents a promising signal for the crypto landscape.
This approval situates Coinbase, a crypto-native company, alongside traditional finance firms, potentially expanding its market significantly. It’s reported that the global crypto derivatives market could be three to four times larger than the spot market, hinting at a wider, more lucrative field for Coinbase.
However, it’s worth noting that despite these promising developments, the value of the company’s stock did not react positively, slipping by 1.56% and reaching $77.7 in after-hours trading. But, taking a broader perspective, Coinbase shares have still increased by an impressive 130% this year.
To sum up, these incidents highlight the volatility, potential rewards, and the inherent risk in the cryptomarket space, where technical hitches can cause notable plunges in prices, and regulatory approvals can open up new vistas of opportunities.