Shiba Inu Snags $12M Funding, Plans Layer 3 Blockchain, Utility Token

The Shiba Inu team has secured $12 million by selling its yet-to-be-released token, TREAT, to non-U.S. venture capital investors, including Polygon Ventures and Mechanism Capital. Lead developer Shytoshi Kusama clarified that despite appearances, none of the investors are based in the U.S., addressing concerns about U.S. involvement. TREAT, a utility and governance token for Shiba Inu's Layer 3 blockchain, will be the final non-stable token within the ecosystem.

Shiba Inu Secures $12 Million in Funding, Unveils Plans for New Layer 3 Blockchain and Utility Token

In a significant development within the cryptocurrency ecosystem, the team behind the popular memecoin Shiba Inu has successfully secured $12 million through the sale of its upcoming utility and governance token, TREAT. This fundraising effort, which commenced several months ago, witnessed the participation of notable venture capital investors from outside the United States, including Polygon Ventures, Mechanism Capital, Big Brain Holdings, Woodstock Fund, and DWF Ventures.

Amidst concerns raised regarding the involvement of U.S.-based investors in this fundraising round, Shytoshi Kusama, the lead developer of the Shiba Inu project, has clarified that none of the investors are based in the United States, despite the involvement of firms such as Mechanism Capital and Shima Capital. Kusama has emphasized that the full entity names of the investors remain undisclosed to ensure privacy and security.

Regarding the valuation of the TREAT token, Kusama has refrained from providing specific details but has indicated that the fundraising was conducted in tranches. According to an anonymous source familiar with the matter, these tranches occurred at valuations of $75 million, $100 million, and $200 million, respectively.

TREAT is poised to serve as the utility and governance token for Shiba Inu's Layer 3 blockchain, which will prioritize privacy and scalability. Kusama has further disclosed plans to unveil a new token named Shi later this year, which will complement the existing Shiba Inu ecosystem.

Despite the unreleased status of TREAT, platforms like CoinGecko and CoinMarketCap have reported trading volume for TREAT tokens. However, Kusama has dismissed these activities as "scams" and has asserted that the authentic TREAT token will be minted by Shiba Inu Mint S.A., a Panama-based corporation.

In addition to the TREAT token sale, Shiba Inu is actively developing a Layer 3 blockchain that leverages fully homomorphic encryption (FHE) technology from Zama, a leading cryptography company. FHE offers significant advantages, enabling end-to-end data encryption even during processing, thereby addressing concerns regarding privacy and trust within the crypto community.

Shiba Inu's adoption of FHE technology is part of a broader effort to tackle pressing challenges in the crypto space, including privacy and security. The team remains committed to delivering innovative solutions that empower its extensive community and future crypto enthusiasts.

To safeguard against fraudulent activities, Kusama has opted not to disclose the name of the Layer 3 blockchain at this juncture. The project's development timeline includes the release of a testnet in the third quarter of this year, followed by the launch of a mainnet after rigorous testing procedures have been completed.

This latest funding round and the upcoming launch of the TREAT token and Layer 3 blockchain are significant milestones in the evolution of the Shiba Inu project. These developments underscore the team's commitment to building a robust ecosystem that meets the evolving needs of the crypto community. As Shiba Inu continues to grow and expand, it is poised to shape the future of decentralized finance and reshape the way we interact with digital assets.