Shiba Inu’s layer 3 blockchain set to power up blockchain real-world utility: Cypher Capital Chairman

Source: Crypto Briefing

Despite a shaky 2022 and a challenging 2023, Shiba Inu has remained dedicated to its vision of building a comprehensive crypto ecosystem.

Following the development of its metaverse and layer 2 chain, Shiba Inu is now ramping up efforts for its new privacy-centric layer 3 blockchain. Last month, the project team announced that it successfully raised $12 million through the sale of its not-yet-released token, TREAT, the utility and governance token for its layer 3 chain.

Bill Qian, Chairman of Cypher Capital, one of the initiative’s major backers, recently joined Crypto Briefing to discuss the future of memecoins, layer 3, and Shiba Inu’s role in reshaping the future of finance and decentralized governance.

Shiba Inu is building an ecosystem

Crypto Briefing – Cypher Capital’s investment in Shiba Inu suggests your belief in the potential of the project. Can you elaborate on aspects of the project or roadmap that you find particularly promising for the future?

Bill Qian – Our decision to invest in Shiba Inu aligns with our mission to usher the next generation into the cryptosphere. Shiba’s unique approach, particularly its ambitious plans to build a Layer 3 and establish a network state—a concept that hasn’t been fully explored in the crypto world—captured our attention.

The prospect of experimenting with novel models and pushing the limits of decentralized systems excites us. As participants in the crypto space, we find Shiba Inu’s dedication to building a dynamic community, forming strategic partnerships, and promoting inclusive governance inspiring.

We are optimistic that Shiba Inu will pioneer a movement that will reshape the future of finance and decentralized governance.

Crypto Briefing – Shiba Inu has a passionate community. Do you see this community engagement as a key factor in the success of meme coins?

Bill Qian – Without a doubt, community engagement plays a pivotal role in the success of meme coins like Shiba Inu. Shiba is still one of the most decentralized projects out there, with over 1 million on-chain holders—this is massive.

The passionate and active community surrounding Shiba not only drives awareness and adoption but also contributes to the project’s ongoing development and evolution.

Recently, we observed Shiba moving up in ranking from the top 30 to the top 10 for a brief period during the early meme season this year. This wouldn’t have been possible if the community wasn’t excited about the token’s future potential.

Crypto Briefing – Do you see meme coins potentially evolving beyond their current form and offering more utility within the blockchain space? How might you envision this happening with Shiba Inu’s layer 3 blockchain?

Bill Qian – Absolutely. Community engagement is key to a project’s success, and Shiba Inu has already shown its strength in building a supportive community around its meme. I see Shiba evolving beyond just a memecoin; it’s becoming an ecosystem.

Unlike its peers, Shiba Inu is committed to building around its community and expanding its utility beyond being a meme. Over the past three years, the team has been focused on developing innovations to strengthen the community and solidify its position as a top token.

With the introduction of Shiba Inu’s Layer 3 blockchain, we’re excited about the real-world applications that will soon deploy on Treats – Shiba’s Layer 3 that powers the network state. This opens up new possibilities for Shiba to offer practical solutions and utility within the blockchain space.

Layer 3: Opportunities and challenges

Crypto Briefing – Speaking of layer 3 blockchain, how do you think this layered approach can revolutionize the way dApps are built and used?

Bill Qian – I believe the layered approach to blockchain infrastructure development holds immense potential to revolutionize the way dApps are built in the future.

By allocating specific functions to different layers, developers can optimize each layer for its intended purpose while leveraging the strengths of the others.

We’re already seeing this evolution in action, with Web3 games building their own layer 3 solutions to customize their chains according to their specific requirements while leveraging the security and scalability provided by existing layer 1s and layer 2s.

In the future, I envision every project within a niche having a purpose-driven layer 3 to power its ecosystem, resulting in greater efficiency, and flexibility in the development and utilization of dApps.

Crypto Briefing – While layer 3 offers immense opportunity, what are some potential challenges you think we might face in terms of infrastructure development and interoperability between these layers?

Bill Qian – One of the significant challenges with any new infrastructure is the cold start problem, which arises from a lack of users and developers in the space. We are in the attention economy of crypto, where projects compete for visibility and adoption, and this can pose a significant hurdle.

Moreover, as projects increasingly focus on building their own layer 3 solutions, interoperability and compatibility between these layers may become more complex. This fragmentation could lead to confusion for end-users and hinder the seamless integration and interaction of dApps across different layers.

Addressing these challenges will require collaboration among projects, standardization of protocols, and efforts to educate and onboard users and developers to new infrastructure solutions. This will take time, but we are optimistic that such layers will be common and widely used in crypto in the future.

Crypto Briefing – Do you think layer 3 has the potential to bridge the gap between traditional applications and blockchain technology?

Bill Qian – I believe layer 3 solutions will continue to be built and deployed. Whether they will be successful in bridging the gap between traditional apps and blockchain depends on the purpose, usability and execution of the team. Success will rely on factors like user-friendliness, scalability, and compatibility with existing ecosystems.

I think, ultimately, it all comes down to how people embrace and use these technologies in real-world scenarios.

Memecoins may outperform top altcoins this season, but there’s a catch

Crypto Briefing – Do you see a potential shift in VC investment strategies towards meme coins, even if they don’t necessarily align with traditional solid projects?

Bill Qian – Not necessarily. While Cypher Capital maintains its core focus on investing in blockchain infrastructure, we acknowledge the significance of memes in capturing market attention.

Our investment in Shiba Inu exemplifies this balance. Shib’s unique position as both a meme and a project developing infrastructure aligns with our strategy of striking a balance between attention and technology.

Crypto Briefing – In your experience, how does the current bull cycle differ from previous ones in terms of meme coin mania? How long do you think it will take VCs to adapt to this shift?

Bill Qian – Investors are directing liquidity towards attention-grabbing projects, and it’s essential to acknowledge the increasing interest from retail investors in memes during this cycle.

From my experience, we’ve witnessed two previous cycles where retail investors saw substantial returns. However, the bear market of the last two years has left many retail investors more cautious before diving into projects.

This season will be different — maybe memes may outperform top altcoins but it is very tricky for investors to adapt to this shift.

Regardless of the short trends, it is important to diligently study market dynamics to understand what drives these shifts and determine where it makes sense to take calculated risks.

While meme-driven projects may present opportunities for significant gains, every investor should remain committed to their investment principles and conduct thorough analysis before making any investment decisions and impulsively adapting to new shifts.

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Author: Vivian Nguyen