Shiba Inu Coin gets $12 million investment in a Token Sale

The new network will be built after $12 million investment

Meme coin Shiba Inu Coin fetched a huge investment in a Token Sale to build the privacy-focused blockchain. The new network will be built on top of the layer-2 network SHibarium and offer enhanced privacy for users.

Investors purchased the new blockchain for its upcoming utility and governance token TREAT. Shiba Inu is a digital ecosystem based on Ethereum and known for its SHIB token. This funding will help them build a new blockchain that focuses on privacy. A press release on Monday announced this development^[1].

Several investors contributed to this fundraising event, including Comma 3 Ventures, Big Brain Holdings, Cypher Capital, Shima Capital, and others. They all bought TREAT, a new type of token that will serve both as a utility and governance token in the upcoming network.

Meme coin value went up after the huge investment

Shiba Inu Mint S.A., a company focusing on developing the Shiba Inu ecosystem and based in Panama, completed the transaction, as noted in the press release. This fundraising follows a February report by CoinDesk that Shiba Inu's developers are working with Zama, a cryptography company, on this new privacy-oriented network built on Shibarium, Shiba Inu's existing Ethereum-based platform.

The new network will use a privacy technology called Fully Homomorphic Encryption (FHE), allowing developers to safely use data in untrusted environments without decrypting it^[2].

Over the past 24 hours, SHIB's value went up by 2.2%, matching the general increase seen in the broad-market CoinDesk 20 Index. It is now the 12th largest cryptocurrency, with a market value of nearly $16 billion.

Predictions: Bitcoin halving can benefit the meme coin

These huge investments and blockchain plans might predict big things for this meme coin. In the cryptocurrency industry, everything is connected, so these processes and rallies can be affected by many other things like Bitcoin price and its halving. Today, the price of Shiba Inu has increased by 2%, reaching $0.00002704, as the broader cryptocurrency market also saw a 1% rise in the last 24 hours.

SHIB's price has gone up by 15% over the past week, largely driven by the recent announcement that its developers have secured $12 million for a new privacy-focused blockchain. Although it has dropped by 1% over the past month, the coin has increased by 163% over the past year, showing strong medium- and long-term growth.

This upward trend is expected to continue as more information about the new platform becomes available and the overall market mood improves, likely boosting SHIB’s price further. Shiba Inu often responds well to positive developments from its investors.

This expected rise in price may also be influenced by the broader market's optimism ahead of the Bitcoin halving event happening in the next days^[3]. This event will cut Bitcoin mining rewards by half, which has traditionally led to a market rally. Since SHIB has a high correlation with Bitcoin, currently at 0.83, it is likely to benefit from this market upswing.