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Shimmer: The Downward Trend of IOTA’s Side Project Continues

IOTA’s side project, Shimmer (SMR), faces continuous price decline, hitting new all-time lows, causing discontent among investors. IOTA Foundation CEO Dominik Schiener’s criticism further dampens sentiment as Shimmer’s DeFi struggles. Reality belies Schiener’s predictions. The $8 million TVL for Shimmer DeFi and the disappointing airdrop campaign are just two examples




With high hopes, IOTA launched the Shimmer (SMR) side project in autumn 2022. But for weeks Shimmer has had one all-time low after the next. IOTA boss Schiener is being criticized in the community.

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At SMR, sentiment is at its lowest point

The price curve of IOTA’s side project is continuously pointing downwards and a new all-time low for SMR was just recorded on Wednesday at $0.017, one of at least four this year alone. More and more investors in the community are losing their temper and Digidus the DeGenX is giving free rein to his anger on X in an exemplary manner. “Why did (IOTA Foundation CEO) Dominik Schiener decide to badmouth the entire Shimmer ecosystem,” he asks rhetorically, earning a comment that seems below the belt for Schiener.

In fact, Schiener shocked people a month ago when he said on Shimmer that tokens owned by a community couldn’t work. This burst into a $1 million airdrop campaign for IOTA’s side project that was just underway to boost the decentralized finance (DeFi) division for SMR.

Airdrop at Shimmer fails without success

The interim conclusion of this advertising campaign for Shimmer was already very sobering. Now bonus SMR will be paid out to participants from March 16th – but almost no one seems to be interested in that anymore. DeFiLlama ’s data shows how the capital deposited for Shimmer DeFi continues to shrink and has fallen well below $10 million TVL. Of course, the fall in the price of SMR also plays a role here, but viewed soberly, DeFi at Shimmer is simply a nonstarter.

From the end of 2021 onwards, Schiener had always been promoting Shimmer and in the spring of 2023 it sometimes even looked like he wanted to put IOTA aside. In March 2023 , on “It pays to get there early,” Schiener wrote to Shimmer less than a year ago.

Shimmer Community has a maximum of 2,000 active members

Reality belies Schiener’s predictions. The $8 million TVL for Shimmer DeFi and the disappointing airdrop campaign are just two examples. There are currently just 34 projects on the Shimmer ecosystem overview page . Nine of them took part in a campaign called DeepSea Adventures, which just ended and in which free NFTs were distributed.

Nakama Labs takes stock and has counted a good 1,500 participants in this Shimmer ecosystem campaign. This fits with the results of DeepSea Adventures, which can be viewed in detail here , and also with the around 1,000 investors who took part in the Shimmer Airdrop. The active Shimmer community is a fairly small circle and since BitForex was eliminated , SMR only has one international crypto exchange as a trading venue that can be taken halfway seriously.

Individual supporters of Schiener are still trying to defend the powerful man at IOTA and thus also Shimmer. Schiener’s recent derogatory comments about Shimmer were taken out of context and aimed at crypto exchanges, it is said. But Schiener himself has not corrected his comment and is publicly focusing entirely on IOTA again.

Conclusion: Is Shimmer’s swansong premature? IOTA also weak

So far, Shimmer and IOTA still differ technologically in the shared ecosystem through the Ethereum Virtual Machine (EVM), which has only been integrated for SMR since September 2023. But the EVM will soon also be activated for IOTA itself and Shimmer will then no longer have any monetary unique selling points. The existing EVM projects are likely to focus on IOTA in the future, which could accelerate the decline of SMR.

But IOTA is also having a hard time. The harshly criticized “ inflation hammer ” resonates there and the pending decentralization of the network means that typical crypto investors give IOTA a wide berth. Meanwhile, a large camp of the Shimmer community feels betrayed by Schiener. Schiener, who sometimes seems self-aggrandizing, will probably continue to use the word “soon” to describe fantastic future prospects for IOTA – but experience has shown that he cannot be judged by his words in retrospect.

Would you like another example? In October 2023, Schiener celebrated the announced, “soon” addition of the stablecoin USPlus to the IOTA and Shimmer ecosystem – but noticeably nothing has happened since then. If the community is running out of patience and is looking for someone to blame for the debacle at Shimmer, that’s understandable.


(Featured image by  Kelly Sikkema via Unsplash)

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.