Investor Trust Shaken as Shiba Inu Shifts Priorities, Triggers Burn Surge

Generated by AI AgentCoin World
Wednesday, Sep 17, 2025 12:36 am ET1min read
SHIB
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Aime RobotAime Summary

- Shiba Inu (SHIB) price fell 11% as token burn rates surged 856% following a bridge hack and lead developer's shift to AI.

- The bridge hack exposed cross-chain vulnerabilities, triggering panic selling and daily burns spiking to 2.6 billion tokens.

- Developer's AI pivot raised concerns about deprioritizing blockchain development, shaking investor confidence in SHIB's sustainability.

- Analysts warn the strategic shift risks long-term viability, while short-term burn spikes could exacerbate market volatility.

- Despite bullish community sentiment, recent events highlight memecoins' fragility amid growing demand for technical innovation.

Shiba Inu (SHIB), one of the most prominent memecoins in the cryptocurrency space, has seen significant market turbulence following the lead developer's recent pivot from blockchain to artificial intelligence. As a direct consequence, SHIB's price has dropped by approximately 11%, while token burn rates have surged by an unprecedented 856% in the wake of a high-profile bridge hack.

The bridge hack, which occurred late last week, exposed vulnerabilities in the

Shiba Inu
ecosystem, particularly in its cross-chain infrastructure. The incident led to a rapid loss of investor confidence, prompting a surge in token burning as liquidity providers and holders sought to mitigate further exposure. The burn rate, which had previously averaged around 300 million tokens daily, spiked to over 2.6 billion tokens per day in the aftermath.

The lead developer's shift to AI, while not directly linked to the hack, has raised concerns among the

SHIB
community. The move is being interpreted by many as a signal that the project may be deprioritizing core blockchain development in favor of alternative technological pursuits. This has triggered speculation about the long-term sustainability of Shiba Inu’s tokenomics and its ability to maintain value in an increasingly competitive meme token market.

Market analysts suggest that the developer’s pivot could have lasting implications for SHIB’s trajectory. With a growing number of investors favoring projects with clear technical roadmaps and active development, the move to AI may be seen as a strategic misstep. Additionally, the burn rate surge has created a short-term imbalance in supply and demand, potentially leading to further volatility in the near term.

Despite the challenges, some investors remain bullish on SHIB, citing the project's strong community and past resilience through similar market corrections. However, the recent developments underscore the fragility of memecoins, which are often built on hype rather than sustainable technological innovation. For Shiba Inu, the coming weeks will be critical in determining whether the project can regain market trust and stabilize its token price.