Aug 17, 2023

Shiba inu (SHIB) tokens are falling in the past 24 hours, as users report bridging issues after the much-hyped Shibarium network went live late on Wednesday.

Video transcript

The ship token plunged 9% on the apparent shari bridge issues. Marking a turbulent launch of the Sharia network Blockchain. Data shows that transactions on the network were stalled for at least five hours. One of the Shaba developers responded to reports of an outage in a blog post saying there is no bridge issue and that the problem occurred following a mass influx of transaction. So Shaba this layer two launched yesterday, there were lots of dog balloons and pool floaty at East Toronto for this announcement, dogs everywhere. And now we have the token plunging because of these apparent bridge issues will tossing it off to you or Zach sounds like you have something to say. What do you, what do you make of this? I don't know are, are the shit people really in it for the tech? Is this really causality? What like what, what is this is this real like the whole point of a meme coin is just just trading it, you know, just trading it just doing whatever with it. It's not about the bridging or the I don't get it. I don't get it. II I question whether or not this stuff is as causally linked uh as this headline would suggest. Um, but I don't, I don't know. Will, what do you, what do you have to say? Will? I don't, I don't know what to say. Ok, I'm pretty sure this is the correct take, but I do want to leave a big asterisk there in case it is the wrong take. I think like this whole bridging thing really comes down to like multi six because no one has really figured out bridges yet. Like even the most leading Ethereum teams out there working on L two s grow up. So like the optimism team all the way down to like a Trump stuff like that, they haven't quite figured out a lot of these bridging things yet and they're mostly permission. They're multi, they're mostly multi six and they're mostly run by the developer teams or the core teams at these foundations. And I have no expectation that it would be any different for in which is a meme coin and therefore probably not hiring the best tech help out there. Like if the best of the best L two teams can't quite figure out how to decentralize the bridging networks, which these things essentially are, then we can't say that this is either, right? So let's go back to a different story last year with a wormhole hack which happened when uh jump crypto which is running this bridge between two networks was hacked. Why did that happen. Well, at the end of the day, it's also a multi sig uh you're able to put funds on this bridge and that those funds are supposed to go to the other part of the bridge. But the gatekeepers on either side are just people with private keys, holding them, bring in transactions, releasing those transactions to the other side. It's a highly manual process at the end of the day. Like there's a lot of human error there, right? Like no one has quite figured out bridging yet. I think that's what you get with this thing here where they're trying to get these tokens over the other side, but it's not as seamless as you might expect when you're just sending like Ethereum on top of Ethereum, we're sending Bitcoin on top of Bitcoin. That's really simple because it's just the network doing its thing. But when you add like this human element of like, I need to start the lights and I need to turn off the lights and get the tokens over whenever I can. That's where you get like these transaction problems where the volumes are moving as fast as people expect. So I think this is just about the tech here. I don't think it has anything to do with like the network having any major issues just like that's where bridging is at, but people don't think of it that way, right? People think of it as like this should be very quick as all things are in crypto. And I think that's why you see like things reacting in pricing because people have expectations that network is going to function some way. But reality doesn't function that way because the technology isn't there yet. And people's expectations are misaligned and then the price starts collapsing. So that's what I read from this story, Jen. Why do we keep having these expectations? It feels like deja vu big expectations and then a launch that maybe doesn't meet up to all of the excitement that happens during the test net phase. I am most curious to see if this project successfully goes from just like random meme token to the actual serious project where developers are building real things and users are actually doing things. Of course, they launched this like metaverse and layer two and they said that 21 million wallets were created in the test net phase. I'm just curious to see if they can actually get something going maintain momentum. And then in the next full cycle, I, I'm just curious to see like which layer two makes it, it feels like, you know, feels like maybe some of these layer twos that are popping up now may not be around um in the long term. What do you think? I mean, they're saying all the right things but I'm pessimistic. I think they're saying the right things like, oh we're layer two, it's layer two season, we layer two. We're Metaverse. We got mese, let's say some stuff we're here for the long haul. There's real utility. I don't know, I've seen this, I, I feel like I've seen this rodeo before and I guess I'm, I'm less willing to credulously believe I'm jaded. I'm jaded guys. So, you know, Shiba will do what Sheba does and that's fine. Mean coins are fine. They don't have to have this elaborate road map. But I don't know, it just feels like sort of opportunistic positioning relative to the other things going on in the market. But I just don't know, will, I don't know what to say about the Sheba. I think it's fair but like, are we really expecting this to be like the bedrock of innovation for crypto? Like no, like meme coins are meme coins and that's fine. That's what they are. I mean, like Elon did say that he wanted to put money to Dogecoin, he wanted Dogecoin to be like, move a transaction. Do you want 10,000 transactions for a second? They were gonna innovate on the way or one side of things. He had a lot of tweets in 2020 2021 about this. But then like he got distracted and moved on to Twitter and like other projects I think they're still working on Dogecoin itself. But I I sort of see Dogecoin development and she, you know, develop in the same way, right? It's like they're just going to copy and paste any other developers out there, but probably with like not as great tech and not as great like principles as some of these other foundations out there. So at the end of the day, it's just like it's copy and paste and marketing and that's ok. Like you're buying a dog token. I think most people are walking into this with their eyes wide open. It's not super surprising, it's just what it is. You surprised? Well, you know, it would be a good turn of fun turn of events here. You know, Elon also, he doesn't only tweet about doge. He has tweeted about ship before. It would be great if Elon was one of the anonymous developers behind this project or one of the anonymous founders, I think that would be a great turn of events. Of course, I have no clue, but that would be the perfect cherry on top of this cake.

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