• The Shibarium scandal has caused a sharp drop in the price of Shiba Inu and dashed the bullish hopes of the community.
• Whales have been transferring SHIB coins out of staking, and there have been concerns about the development team’s transparency.
• The market sentiment has turned negative as investors are reassessing their involvement in the project.
Shibarium Scandal Sparks Fear
Shibarium, a Layer-2 solution for the Shiba Inu cryptocurrency, has caused turmoil within the community, leading to a sharp collapse for Shiba Inu after being accused of being a clone. This allegation has played a significant role in the recent decline of the Shiba Inu price.
Whales on The Move
Data from WhaleAlert shows that whale investors have already started their move as they transferred 800 billion Shiba Inu coins from Shiba Inu staking to an unknown wallet, indicating that they have withdrawn $8.23 million worth of SHIBs from the program amid speculation about the cloning of Shibarium code. Along with this, there were also concerns over transparency issues with regards to development team updates which led to an exodus from their staking contract resulting in unstaking $5 million worth of BONE tokens.
SHIB Price Plunge
The controversy around Shibarium has had drastic effects on its native SHIB token which saw a 13% decline in its value due to market sentiment turning negative. Investors and users are seemingly reassessing their involvement in the project as SHIB is currently hovering near local support levels on its hourly chart following this plunge.
Risk for Investors?
With further uncertainty surrounding Shibarium’s legitimacy and potential risk for investors who may be left out of pocket if it is proven to be a clone project or fails due to internal organisational issues – caution should be taken before investing into any projects related with Shiba Inu or Shibarium itself as there could still be further downtrends ahead depending on how events unfold over time – making it important to monitor developments closely so proper decisions can be made when needed.
In conclusion, while some hope still exists that things may turn around for Shibrium and by extension – SHIB prices too; The current situation remains uncertain and requires close monitoring going forward in order to assess whether further losses are likely or not – so appropriate action can be taken when needed accordingly by investors who may have exposure here either directly or indirectly via other cryptocurrency investments related with these two entities/projects respectively..