Investor Confidence Wavers as Shiba Inu Alters Focus, Sparks Increase in Token Burns

Shiba Inu (SHIB), a leading memecoin within the crypto sector, has experienced notable market instability after its chief developer shifted focus from blockchain technology to artificial intelligence. As an immediate effect, SHIB's value decreased by about 11%, while the rate of token burning soared by an extraordinary 856% following a widely publicized cross-chain bridge security breach.

The bridge exploit, which took place at the end of last week, revealed weaknesses in the

network, especially within its cross-chain systems. This event caused investor trust to erode quickly, prompting a spike in token burns as both liquidity providers and holders tried to limit further risk. Previously, the daily token burn rate hovered around 300 million, but after the incident, it skyrocketed to more than 2.6 billion tokens each day.

The main developer’s move toward AI—though not directly tied to the breach—has unsettled the

community. Many interpret this as a sign that foundational blockchain work may be taking a back seat to new technology ventures, leading to uncertainty about the project’s future stability, token model, and ability to compete in the crowded meme coin landscape.

Market experts warn that this shift in focus could have lasting effects on SHIB’s future performance. As more investors prioritize projects with transparent development plans and ongoing technical progress, the move toward AI could be viewed as a miscalculation. At the same time, the dramatic increase in token burns has temporarily disrupted the balance between supply and demand, which may drive additional price swings soon.

While these setbacks have rattled some, there are investors who remain optimistic about SHIB, pointing to its dedicated community and history of overcoming past downturns. Nonetheless, the recent events highlight the vulnerability of memecoins, which often rely on excitement more than solid technical progress. For Shiba Inu, the next several weeks will be crucial in rebuilding investor confidence and achieving price stability.