Terra’s algorithmic stablecoin UST crashed in May and rumors about Coinbase’s USDC “about to collapse” are making rounds online. While crypto investors are trying to distance themselves from algorithmic stablecoins, Shytoshi Kusama, the lead developer of Shiba Inu, has announced that the dog-themed altcoin will launch its own algorithmic stablecoin this year.
Kusama said Sunday that they would share “a lot” when they talk and true enough, the pseudonymous lead developer offered a rundown of updates on various Shiba Inu’s upcoming projects. One of these is the potential launch of the stablecoin SHI, which according to Kusama, “should be released in 2022” in the absence of “insane issues.”
The pseudonymous lead developer acknowledged investors’ concern about stablecoins following the catastrophic collapse of TerraUSD UST. He assured the community that the development of Shiba Inu’s algorithmic stablecoin is being handled by “a group of developers in our decentralized network” with measures in place so SHI could “avoid the issues found in other moonshots while allowing Shi to be used to counter and balance payments that need to be done without market fluctuations.”
Kusama said SHI will be “an experimental protocol” and promised to share a “more detailed and complex set of information” about the token “as it is finalized.” But while some Shib Army is happy about this development, others are skeptical about the algorithmic stablecoin.
One Twitter user called the project “a terrible idea,” while another questioned the initiative and declared, “this is the end of Shiba token.” Other users want the government to intervene, with Twitter user cryptochris tagging the U.S. SEC and asking the agency to “stop em before it happens.”
Twitter handle C Bear asked the development team to “STOP MAKING NEW COINS AND USE FUCKING SHIBA TOKEN,” while others called the upcoming algorithmic stablecoin an “exit scam.” One user who goes by the name Rafau told Kusama, “Wake up, sir and stop this bullshit,” while Twitter user Rober Castro advised the team to “concentrate on burning shib from the total supply. Jack of all trades, master of none.”
There were several users who were grateful for the development team’s efforts and expressed strong support for the incoming algorithmic stablecoin. Some said the launch “will be huge for growth, development, and new holders,” while others stated that “it will not be an algorithmic stablecoin. it will be built differently than traditional stablecoins.”
One user called the upcoming launch “Greatness approaching.” Another user advised to exercise caution but was delighted with the news and said, “Will need to be watertight algorithm after the LUNA debacle, but great news.”
As of 1:12 a.m, ET on Thursday, SHIB was trading up 1.56% at $0.00001058 with a 25-hour volume of $301,205,868 based on the latest data from CoinMarketCap.