Shiba Inu, the team behind the popular memecoin SHIB, has secured $12 million to develop a new Layer 3 blockchain with a focus on privacy. The funding comes from a consortium of venture capital firms, including Polygon Ventures and Animoca Brands, through the sale of a new token called TREAT.

All About Shiba Inu’s L3 Network

• TREAT Token: This will serve as the “utility and governance token” for the upcoming blockchain, built on top of Shibarium, Shiba Inu’s Ethereum Layer 2 network. TREAT is being positioned as the final non-stable token within the SHIB ecosystem.
• Privacy Focus: The new blockchain will utilize “Fully Homomorphic Encryption” (FHE) to enhance transaction privacy on the network.
• Investor Participation: Shiba Inu closed the funding round in tranches with valuations ranging from $75 million to $200 million. Some investors listed, like Mechanism Capital, appear to be US-based, but developer Shytoshi Kusama claims none are actually located in the US.
• SHIB Price: The price of SHIB remained flat on the day of the announcement but has gained 19% over the past week. It currently sits as the 11th largest cryptocurrency by market cap.

Background on the Shiba Inu Ecosystem

Shiba Inu’s SHIB token gained popularity alongside other meme coins in early 2024, likely benefiting from the launch of the first Bitcoin spot ETF in January. The Shiba Inu ecosystem already features BONE, the native token for Shibarium, and LEASH, a limited-supply token rewarding loyal SHIB holders.

Next Steps for TREAT Token

The launch date for the TREAT token and the new blockchain remain undisclosed. Fake versions of TREAT have already appeared on CoinMarketCap and CoinGecko. Investors are advised to wait for the official announcement from Shiba Inu.

With this new funding and the development of a privacy-focused blockchain, Shiba Inu aims to move beyond its memecoin status and establish itself as a serious player in the DeFi space.