KEY POINTS
- The funding will be used to build the FHE blockchain that will address key privacy and trust concerns
- Animoca Brands and Polygon Ventures are just 2 of the new project's major backers
- Shiba Inu's lead developer said the latest funding is a newfound "validation" for the team
Shiba Inu, a digital assets ecosystem built on the Ethereum blockchain that includes widely popular cryptocurrency $SHIB, on Monday announced it has raised a total of $12 million in a funding round through an unreleased token $TREAT to build its new layer-3 blockchain solution.
The funding is backed by some of its largest non-U.S. venture capital partners, including Hercules Ventures, Polygon Ventures, Primal Capital, Woodstock Fund, Web3-focused venture capital firm Animoca Brands and more.
The funds were raised through the $TREAT utility and governance token, which the crypto firm said was its final non-stable token that will unlock Shiba Inu's new layer-3 blockchain that features Fully Homomorphic Encryption (FHE), which enables zero trust security without the need to decrypt data value on untrusted domains.
The funding will be used to build the layer-3 blockchain with FHE to ensure that the Shibarium layer-2 blockchain solution for the Shiba Inu ecosystem can expand its security and regulatory compliance while also pursuing its goal of being the world's "meme center."
Shiba Inu's $TREAT token account said in a post on X (formerly Twitter) Sunday that the $TREAT will power the new FHE blockchain that will "revolutionize privacy and trust in crypto, addressing key concerns for both crypto-natives and the crypto-curious."
3/ Let’s talk about $TREAT! 🦴@treatsforShib will power our blockchain featuring fully homomorphic encryption (FHE), developed in collaboration with @zama_fhe
— Treat (@treatsforShib) April 22, 2024
This technology is set to revolutionize privacy and trust in crypto, addressing key concerns for both crypto-natives…
"We are excited to gain the support of such powerful VCs, angel investors, and brands as we plow towards the completion of this grand decentralized experiment. Through the involvement of these venture capital firms and their strategic partners, we are expanding not only our network of trusted partners, but also exponentially increasing what Shiba Inu can truly be capable of for our community, The ShibArmy," said Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu.
Kusama also told TheStreet in a rare interview at the Token2049 event in Dubai that it was "extremely important" for Shiba Inu to prove itself and obtain "new validation" in the memecoin space through the support of venture capital funding. He revealed that in the next step of growth, the team looks to expand Shiba Inu "beyond existing crypto users."
The team will step up efforts on moving the ecosystem toward a "social network state," he said, adding that the new funding should also enable more community grants. It will also help expand Shiba Inu's usability in other aspects of the industry through new partnerships.
Shiba Inu launched in mid-2023 and has since become a major player in the altcoin circle. A study earlier this year revealed that Shiba Inu surpassed Bitcoin, the world's largest cryptocurrency by market cap, in generating positive discussions online, thanks to its committed and proactive ShibArmy.
