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How Shiba Inu’s Stablecoin SHI Will Evade Collapse Like Terra’s UST?


coinquora.com 07 July 2022 16:55, UTC
Reading time: ~2 m

Shiba Inu’s lead developer Shytoshi Kusama dropped the details on stablecoin SHI. Developers are working on SHI, and Kusama assures that the stablecoin will not face a similar fate as Terra’s algorithmic stablecoin UST.

Terra made headlines after the colossal crash of sister tokens LUNA and UST. $41 billion in market value was wiped out after the collapse of Terra’s cryptocurrencies. Kusama addressed this in his blog and told the Shib Army that this will not repeat; stablecoin SHI’s current version negates the possibility of a UST-like crash.

Kusama explained that there is an independent development from a group of developers in the decentralized network. An updated version of SHI has been submitted after studying the UST crash, and it would avoid issues found in moonshots. SHI will be used to counter and balance payments without market fluctuations.

The experimental stablecoin protocol will make stablecoin will make Shiba Inu more decentralized. Kusama told the Shib Army that a more detailed and complex set of information will be released about SHI and barring issues. Notably, the stablecoin will be released within 2022.

Shiba Inu price is struggling to make headway with a lack of volatility in the current market. Despite the recent developments in the Dogecoin-killer, SHIB is struggling to recoup losses from the past two weeks.

If volatility increases and Shiba Inu breaks into an uptrend, it could trigger a 20% rally in the meme coin. However, there is a risk of a downtrend if there is a daily candlestick close below $0.0000095. This could result in a 15% drop in Shiba Inu price.

Shiba Inu Perpetual Futures (Source: TradingView)

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.

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