Member of Shiba Inu team has explained purpose of SHI and warned the SHIB community about this stablecoin and TREAT token
One of the members of the Shiba Inu team, using the pseudonym Vet Kusama, has taken to the X social media platform to address the SHIB army regarding the SHI stablecoin, which is currently in development.
He made an important warning about SHI and TREAT tokens and explained why the Shiba Inu ecosystem needs a stablecoin in the first place. Recently, the SHIB team has published several warnings about fake TREAT tokens being offered to the SHIB community by scammers.
Here’s why Shibarium needs SHI
Vet Kusama wrote in the X post that SHI is part of the Shiba Inu ecosystem, and it will serve as a stablecoin on Shibarium. He explained that stablecoins are necessary and they have a “major role in projects that create their own chains and in other digital asset purchases and sales, keeping their users’ money in balance with fiat currency.”
For the same reason, Kusama wrote, the BNB Chain had its BUSD stablecoin (but it is no longer issued). Besides, stablecoins on a blockchain contribute to the growth in trading volume.
Kusama reminded the SHIB army that the global crypto community “saw some bad examples last year.” One of those was the collapse of the UST stablecoin issued by Luna Foundation Guard, then Binance’s partner Paxos had to stop issuing BUSD after the American regulator, the SEC, called it an unregistered security.
For these reasons, Vet Kusama emphasized, the SHIB development team is working on SHI “meticulously and in the most professional way to avoid any negativities.” He also shared a screenshot of an article by the mysterious SHIB founder Ryoshi about SHIB, BONE, SHI, LEASH and TREAT tokens.
Here comes warning from Kusama
Vet Kusama once again warned the Shiba Inu community, stating that there are no official details released yet about the value or supply of SHI. This stablecoin has not been deployed and released yet, he said. Neither has another token, which is currently in development, TREAT.
“Everyone will meet Shi and Treat at the same time,” Vet Kusama warned, adding that there are “no pre-purchases or airdrops.”
TREAT is going to be used as a reward for staking in the Shiba Inu ecosystem, according to earlier statements by Shiba Inu reps. Recently, various SHIB team members, including marketing content expert Lucie, warned the SHIB army that TREAT remains in development, and anyone who offers to buy this token or states that it has been released is either a scammer or is spreading fake news.
PayPal’s stablecoin PYUSD vs. SHI
In early August this year, when the PayPal giant launched its own dollar-pegged stablecoin PYUSD, the crypto community (SHIB army members among them) poured criticism on this product as it has an embedded function of freezing and then erasing users’ balance of PYUSD.
The SHIB community then opposed SHI to PYUSD, stating that when the former is launched, it will be a game-changer. Unlike centralized stablecoins, like USDT and USDC, which can freeze your balances, the SHIB army is focused on decentralization and protection of users’ personal data.