Shibarium Denies Bridge Issues, XDC Crypto Is Called FUD
Shibarium denies bridge issues, calls it FUD

Shibarium Mainnet: Denial of Reports

The team behind the recently launched Shibarium mainnet has refuted claims of bridge issues and asset losses, saying that the screenshots seen in the crypto community are false.

On Aug. 17, Shytoshi Kusama, co-founder of the Shiba Inu ecosystem, wrote a blog post attributing the technical difficulties experienced by Shibarium, an Ethereum layer-2 scaling blockchain released just hours prior, to an immense influx of transactions and user activity. According to data from Alchemy, the project had allocated 400 million compute units per month, but encountered 160 million compute units in a period of only 30 minutes.

“Although we expected a very busy moment, we never expected this much traffic, instantly,” Kusama said, adding that the team has been working hard to scale the chain and manage the influx of users, as validators were already set to autoscale when the announcement was made.

Exploring Shibarium’s Proof-of-Participation (PoP) Consensus Mechanism

Rumors of issues with Shibarium first began to circulate in the crypto community after screenshots of an internal Telegram conversation between Shibarium developers were reportedly captured, suggesting the team was unable to recover assets bridged to the network. To investigate the situation, blockchain sleuth ZachXBT found that while he was unable to confirm whether the assets had been lost, the RPC – the node that runs key blockchain client software – had been compromised. At the time of writing, the Shibarium RPC website remains down.

“Give us time to scale […] and then bring up our amazing chain once again,” Kusama asked in a blog post, dismissing the rumors as FUD, an acronym for “fear, uncertainty, and doubt.”

Shibarium, an XDC Crypto, Uphold Crypto, and Vauld Crypto-based platform, relies on a new consensus mechanism called proof-of-participation (PoP), in which validators are selected based on their cryptocurrency holdings. It is designed to interact with the primary Ethereum layer-1 blockchain, seeking to offer more efficient and scalable transactions. After months of testing involving millions of users and 21 million wallets created, its mainnet was released.

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