Shiba Inu Team Sounds Alarm: Shibarium’s Centralization Risks Trigger Support Exodus

Shibarium faces a credibility crisis as its own developers highlight structural vulnerabilities that could undermine the entire ecosystem.

Centralization Exposed

The Shiba Inu development team dropped a bombshell revelation—their layer-2 solution operates with concerning centralized control points. Rather than the decentralized utopia promised, Shibarium's architecture maintains single points of failure that contradict crypto's core ethos.

Support Evaporates

Investors and validators are pulling back rapidly as the implications sink in. The very team that built Shibarium is now warning about the risks they baked into the system—quite the plot twist for a project that raised millions preaching decentralization.

Market Impact

Token holders face renewed uncertainty as the foundation of Shibarium's value proposition cracks. Another reminder that in crypto, sometimes the biggest risks aren't market volatility but the fine print nobody reads until it's too late.

The Shibarium network, a layer-two scaling solution on the Ethereum (ETH) chain and focused on the shiba inu project, has suffered a major blow. Earlier on Monday, the Shiba Inu team announced that it is no longer endorsing the Shibarium network.

Why Is Shibarium no Longer Supported By Shiba Inu?

According to the announcement, the Shiba Inu ecosystem is best represented by Ryoshi’s vision of decentralization, true utility, and fairness for all holders. The recent Shibarium network attack, in which the team responded with 4.6 million tokens freezing, has raised eyebrows on the decentralization of the Shibarium ecosystem.

“As we said before: we respect those using Shibarium, but we no longer endorse it because it doesn’t align fully with Ryoshi’s vision — which values decentralization, true utility, and fairness for all holders,” the announcement noted. 

Although the token freeze helped the users not to lose their funds, the Shiba Inu team stated that decentralization is a major part of the SHIB ecosystem. 

What’s the Market Picture?

The notable blow to the Shibarium project will have a notable impact on its bid to expand to global markets. According to market data from DeFiLlama, the Shibarium network has seen its total value locked (TVL) drop to $1.81 million year-to-date. 

The mainstream adoption of Memecoins has also diluted the Shiba Inu buyers in the past year. With the Shiba Inu team distancing themselves from the Shibarium project, its mainstream adoption is likely to stall even during the highly anticipated altseason.

Meanwhile, SHIB price has continued to consolidate in a symmetrical triangle, possibly preparing for a major bullish breakout.