Home / News / Crypto / Shiba Inu Issues Warning: Is Shibarium Hotbed of Rug Pulls? 
4 min read

Shiba Inu Issues Warning: Is Shibarium Hotbed of Rug Pulls? 

Last Updated April 16, 2024 1:22 PM
Shraddha Sharma
Last Updated April 16, 2024 1:22 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • An Investor and marketing expert from the Shiba Inu team has issued a warning.
  • The expert noted that not all projects fail, due to scams.
  • The price of SHIB has taken a hit but active accounts on the chain see growth.

New crypto projects spring up daily on, each promising unique benefits and innovations. However, the Shiba Inu team’s marketing expert, Lucie, has recently raised concerns over the potential risks associated with launching projects on Shibarium. Addressing the Shiba Inu community on X, Lucie gives some insights as the meme coin’s active addresses see growth.  

Risks of Projects on Shibarium

Ethereum-based Layer 2 Shibarium, associated with the Shiba Inu meme coin, has released a warning. Marketing lead Lucie took to X to emphasize that not all failed projects on Shibarium are victims of rug pulls. Rug pulls usually describe scenarios where developers abruptly withdraw from a project, taking investors’ funds with them.

The community member points out that poor management and inadequate project growth are also factors that can lead to failure. Lucie advices the potential developers and investors to scrutinize projects thoroughly before committing their time and resources.

Meanwhile, Lucie has advice for new projects. Firstly, she asks to establish a clear and detailed roadmap. According to the investor, the document should outline the project’s goals, strategies, and timelines, providing potential supporters with a transparent vision of the project’s future.

Secondly, Lucie stresses the importance of introducing projects and engagement with the community through platforms like Telegram and Discord. This is in addition to maintaining a good and respectful attitude in community interactions.

Lucie also advocated for organic growth, suggesting that developers focus on building and nurturing a community of genuine supporters rather than relying on paid marketing efforts. According to the marketer, the approach not only enhances credibility but also ensures sustainable project development.

State of SHIB Meme Coin

The advice from the marketing lead comes at a time when Shibarium has reached a total value locked of $2.67 million, according to DefiLlama . Decentralized exchanges populate the protocols on the network with WoofSwap and MARSWAP leading in terms of dollars locked. However, the TVL has taken a hit in April after a rise in March.

Shibarium TVL
Shibarium TVL: Source: DefiLlama

March witnessed more money entering the platform due to new releases. One of the additions was the DAMN meme coin on Woofswap that pulled the chain TVL to $3.9m.

The token is exhibiting weakness as well. According to CoinGecko analysis , SHIB lost around 20% of its value in the seven days to April 16. The returns on the annual charts are still positive.

Another aspect that draws optimism is the chain is seeing growth in active accounts. Coinpedia says that the metric saw 80% growth while transactions saw a 128% surge.

What Does it Mean for Shibarium Projects?

Lucie’s emphasis on scrutiny and planning in new projects launches on Shibarium is noteworthy. Especially when a single meme launch has been able to pull up the entire network. Indeed, the reverse can become true as well.

However, the recent downturns in SHIB’s price and Shibarium’s total value locked are offset by the growth in active accounts and transactions suggesting engagement and potential for recovery.

Was this Article helpful? Yes No