ProBit Global Temporarily Suspends Shardeum (SHM)

The centralized crypto exchange ProBit Global is ranked at 96th position in BitDegree. ProBit has shared the breaking news today, on September 5th that deposit and withdrawals of Shardeum (SHM) tokens are temporarily suspended. The SHM/USDT trading pair is operational as usual however. During the suspension period users may continue to trade the token. Let’s look into this news further.

Background on Shardeum (SHM)

The native token of Shardeum is called Shardiome. Shardeum is a new and ambitious project with lots of potential that aims to solve some of the largest shortcomings. Shardeum is an EVM-compatible, linearly scalable blockchain. This has been promoted as a second-generation chain with the ability to maintain high transaction with without compromising decentralization and security.

Shardeum is defined by the following characteristics:

• Very low transaction costs of less than 0.01.
• Fluid settlements and, therefore, its attraction to micro-pay and large volume dApps.
• An elastic supply paradigm, based on the Ethereum adaptive issuance mechanism, but more elastic over time, to maintain the tradeoff between security, rewards, and inflation.

Impact of the Suspension

ProBit Global has not revealed the cause of pausing deposits and withdrawals. These acts tend to be of one or more of the following categories:

• An upgrade or technical maintenance, e.g. a wallet integration or blockchain node upgrade.
• Security checks, usually as a reaction to a possible vulnerability or suspicious activity.
• Adherence to rules, particularly as the exchange operations and token projects gain more international focus.

This sort of partial restraint is a typical sign of a temporary accommodation rather than an overall issue with the token itself.

Broader Market Context

Other exchanges, including Bithumb, have also recently announced comparable suspensions of various tokens, on both technical and compliance-related grounds. This is a sign that exchanges are becoming increasingly more active in managing risk at the cost of short-term user inconvenience. One such growing blockchain ecosystem that has been on the radar is Shardeum as represented by its suspension. Any question about the existence of its native token SHM, particularly in exchanges, can lead to uncertainty over the liquidity, confidence among end-users, and adoption rate. Suspensions of deposits and withdrawals are not new to crypto. Any impediment to entry into SHM affects both existing users and future users who might wish to have access to the ecosystem.