Shiba Inu Secures $12 Million from Institutional Investors
Shiba Inu, one of the most popular memecoins, is making big strides. The analysts noticed that the project managed to gather around $12 million in investment funds that will go towards building its novelty privacy layer.
New Memecoin will Act as a Governance Token
The project is working on releasing a new memecoin namely $TREAT that operates as a utility and governance token.
The project made the announcement on 22nd April noting investors such as Comma 3 Ventures, Cypher Capital, Hercules Ventures, Big Brain Holdings, Animoca Brands, Shima Capital, Morningstar Ventures, Woodstock Fund, Illuminate Digital Capital, Polygon Ventures, DWF Ventures, Mechanism Capital, Stake Capital, and Spirit DAO.
These investors have collectively put a bet on private token sales from outside the United States.
The participation of venture capital and partnering firms assisted Shiba Inu to expand the network as per Shythoshu Kusama, the anonymous developer of the meme token.
The developer retained a low profile for the major part of 2024 with reporters catching a glimpse in New York, Maldives, and Japan. However, the developer stated that he is currently on vacation and enjoying his free time just like everyone else.
Speaking on the matter of the memecoin development, he posted on Telegram on 21st April noting that he has put his heart and soul to build the memecoin. Meanwhile, he further addressed the investors calling them worthless Fudders who do not deserve the breath God granted them.
He was addressing the critical remarks of one of the users. Speaking on the matter of recent development, he noticed that TREAT is a token by the popular brand that will unlock the blockchain featuring the Fully Homomorphic Encryption (FHE) feature.
FHE Technology
Two months ago, the Shiba Inu project joined hands with Zama.ai to launch the FHE technology. This technical infrastructure forms the basis of its novel privacy layer i.e. Tre.
The project intends to use the fund on its Panama-based program called Shiba Inu Mint S.A that serves as Treat platform. The project further listed down all the possible utilities of this technology such as encrypted lending, asset tokenization, and encrypted machine learning.
Shiba Inu has remained one of the top-performing meme coins and gained 164% during the last year. Late December, the project launched the .shib domains for investors.
Additionally, Shibarium a layer-2 scaling solution crossed over 1 million users since its introduction. Another Cointelegraph report suggested that meme coins have printed massive returns since the beginning of 2024.
Long-term Utility and Growth
An analysis published in Cointelegraph reported that memecoins have amassed massive traction among investors. However, there is some talk about utility and scams that could potentially diminish their stability in the the long-term.
Bitcoin as a prime digital asset recorded an ATH of $73,600 in March with the memecoin sector becoming the most profitable section by far in 2024.
As per the report, the section generated a massive output of around 1300% among top tokens in terms of market capitalization.
At the same time, the multitude of memecoins gained massive traction and rose to international prominence overnight such as Book of Meme (BOME), Brett (BRETT), and Cat in a Dogs World (MEW). These meme coins ranked among the top 10 meme projects within weeks allowing early investors to earn massive profits.
One such story is a person turning $13,000 into $2 million by investing in the Donotfomoew (MOEW) token after its DEX offering on 3rd April. The reports suggest that the investors purchasing 499.9 million MOEW tokens against 4 ETH only minutes after the launch. Within an hour the trader sold 111.65 million MOEW tokens for around 100 ETH estimated approximately $ 328,000.
Another such instance happened when an investor purchased $8300 to purchase billions of Apustaja (APU) tokens. After a while, he was able to sell them to a high price of $0.0007907 with the total investment incoming sitting at $6.5 million.
CoinGecko analyst Lim Yu Qian commented that meme coin has 4.6 times greater profit in comparison to best-performing cryptocurrencies hailing from tokenized real-world assets and 33.3 times more profitable in comparison to layer-2 coins printing lowest returns in Q1.
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