Why SHIB’s Long-Term Promise Is Fading Fast

Shiba Inu has a weakness because token burns are on the decrease, projects are at a standstill, and transparency issues are accumulating, making the investment less appealing in the long term.

Shiba Inu is struggling with significant issues that prevent it as a long-term investment. TheCryptoBasic on X notes that Canton and Uniswap recently surpassed SHIB in the market rating. The meme token is currently trading at $0.000007502, increasing by 2.3 per cent per day.

But there is a bigger picture to see the weakness prevailing. SHIB remains down 12.4% over 30 days. It has dropped 64.5 percent since January. In spite of this poor performance, there are still influencers who are encouraging investors to think in the long term.

Token Burns Collapse to Critical Lows

SHIB was introduced in 2020, 1 quadrillion tokens. Burns were instituted by developers to decrease supply. The circulating supply remains at 589.24 trillion tokens.

Burn activity has plummeted as TheCryptoBasic reported on X. Shiburn data indicates that during 24 hours, burn rates had fallen by 89.96%. The most recent burning of tokens was only 1.09 million.

Source:  TheCryptoBasic

In the past, the community burn tracker claimed that billions were being burned per day. Nowadays, small quantities get to dead wallets. The chances of a decrease in supply are minimal.

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Ecosystem Promises Remain Unfulfilled

In August 2023, the Shiba Inu team introduced Shibarium. TheCryptoBasic on X states that the Layer-2 network was set up as a developer hub. In reality, performance has been wanting.

There are a number of projects that are initiated on Shibarium and are not adopted meaningfully. SHIB and sister tokens BONE, LEASH, and TREAT had minimal use. The team declared games, a metaverse, and blockchain infrastructure.

TheCryptoBasic has reported on X that flagship projects are still unfinished. SHIB: The Metaverse and SHIB Marketplace are yet to be released, as promised in 2024. The Layer-3 privacy blockchain has not received any real update.

Such frequent stalling has undermined investor confidence. Certain community leaders encouraged tokens beyond the ecosystem. Solana-based Hachi was promoted by the Shibtoken X account with 3.9 million followers.

There was resistance among the members of the community. They claimed such activities will distract attention and capital of SHIB. SHIB is still viewed by investors as a meme coin.

Major developer Shytoshi Kusama hinted at an AI project. There is still no detailed information. The lack of value-creating utility highlights the necessity of new products.

There are also persistent transparency issues that make the perspective weak. Since its launch, core developers have worked under pseudonyms. Even the public appearances of Kusama were with a disguised identity.

Team-community communication has been reduced. Some of the biggest names slowed down activity on X. There are also personal or dormant accounts.

TheCryptoBasic covered on X that K9 Finance released alarming information. The Shiba Inu team ceased to answer any inquiries regarding the recovery of funds, which had been lost in the Shibarium exploit. Such unresolved problems undermine significant confidence in the long-term prospects.

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