Analyst Calls Shiba Inu (SHIB) a ’Dead Investment’ Over Utility, Transparency and Supply
Digital marketing entrepreneur Neil Patel labeled Shiba Inu (SHIB) a “dead investment,” arguing the token lacks real-world utility, suffers transparency and governance problems, and faces an oversized circulating supply that limits upside. Patel said SHIB’s price is driven more by market cycles and attention-driven trading than by fundamentals. He noted limited sustained demand from Shibarium, the Shiba metaverse and the project’s DEX, and reported waning community engagement. Transparency concerns intensified after K9 Finance DAO — SHIB’s liquid-staking partner — said SHIB developers ceased responding during recovery efforts following a Shibarium Bridge exploit. At reporting SHIB traded near $0.0000077–$0.0000082, roughly 90.7% below its October 2021 all-time high. Patel contrasted SHIB with assets he sees as having clearer use cases (e.g., BTC for macro monetary roles, ETH for tokenized real-world assets) and cautioned investors to prioritize tokens with stronger utility and governance. He also highlighted tokenomics risks: a circulating supply of about 589 trillion SHIB and reliance on voluntary burns reduce scarcity potential. For traders, the assessment underscores elevated downside risk for SHIB and suggests focusing position sizing, stop-losses and risk management on assets with clearer fundamentals.
Bearish
The combined reporting emphasizes multiple negative fundamentals for SHIB that are likely to exert downward pressure on price. Key bearish drivers: (1) Weak utility — core products (Shibarium, metaverse, DEX) have not produced sustained demand, reducing adoption catalysts; (2) Governance and transparency concerns — the report of K9 Finance DAO’s failed communication after a Shibarium Bridge exploit raises recovery and trust issues that can deter investor capital; (3) Tokenomics — an enormous circulating supply (~589 trillion) plus reliance on voluntary burns limits scarcity and long-term upside; (4) Market psychology — Patel frames SHIB as attention-driven, implying future rallies may be speculative and short-lived. Short-term impact: heightened volatility and potential sell pressure as traders react to governance and security news; quick exits or reduced leverage are rational responses. Long-term impact: unless meaningful improvements in utility, governance, or supply mechanics occur, SHIB faces persistent downside or rangebound behavior and will likely underperform projects with clearer use cases. Overall, the news raises probability of further downside for SHIB and warrants conservative risk sizing for traders.