Shiba Inu Tumbles 7% On Claims That Shibarium Code Was Copied From Rinia

Shiba Inu price fell 7% over the last 24 hours amid growing concerns about the source of code for its long-awaited Shibarium blockchain. At the time of writing, SHIB was hovering within the confines of a bearish technical pattern which pointed to more losses for the meme coin. 

Shibarium Is Allegedly Built On A Copied Code

Members of the Shiba Inu Discord community are alleging that the Shibarium, a Layer 2 blockchain that allows developers to build decentralized applications (dApps) on Shiba Inu, has the same Chain ID as that of another blockchain called Rinia. Others users also claim that the multi-sig wallet is not run by entirely unique individuals.

A user who was speaking on the matter stated that one of the easiest things that developers can do when they are first installing a network is to check the chain ID. This is because “using an ID that already exists is just incompetent as your chain wouldn’t work properly and everyone trying to interact with your chain would instead interact with the other chain.

“Why is it that it looks like Shibarium’s test net has taken the rinia testnet genesis file. Changed the name from rinia. But forgot to change the chain ID”, the user asked during the discussion on Discord.

Wait until I dox the founder of $SHIB it’s coming this week. Heck maybe tmrw https://t.co/aAKW39I92G

— Ben Armstrong (@Bitboy_Crypto) March 16, 2023

The tweet by Rancune presented images from the Discord discussion saying a channel moderator mentioned “manipulation and silencing”. One of the images states:

The Metaverse team … had no knowledge of what you are seeing on Shib.io website or within the metaverse video showcased. Apparently, there were accusations of buying assets without modification or anything else.

More text from the picture read:

Shytoshi has created manipulation against the entire team with slanderous lies and manipulation along with members of the community to do his bidding. There are also people helping him to do this that know it’s all a lie, but do it because of fame, money, and promotions.

Shiba Inu developers and other community members were quick to address the claims with one of them identified as JesusM saying, “there is absolutely no evidence that this is a fork of a chain that launched last month.”

Justinlime, another network validator weighed in saying, “Even if some of the code was used in the beta does not mean all of it was. To me it’s very doubtful that it’s a direct fork with nothing changed. Forking, and building upon already established software, is the core foundation of what FOSS (free and open source software) stands for.”

As earlier reported by InsideBitcoin  earlier this month, the launch of the Shibarium testnet represented a turning point for the Shiba Inu community. Peaking on the matter then, Lead developer Shytoshi Kusama said:

It will allow us to meet the army and remain organized in the process. It will allow us to grow Shibarium’s reach with professional companies, and allow us to reset our relationship with businesses that we’ve contacted too in the past. Finally, it will help us find the right validators.

There’s no official word yet from the Shibarium development team regarding the allegations made over Discord. Whether this affects the full launch of Shibarium is unclear. However, the effects were immediately felt by SHIB holders who witnessed as much as a 10% drop in the token’s price during the late New York trading hours on Wednesday. 

Other tokens within the Shiba Inu ecosystem tokens BONE and LEASH are also down more than 10% in the past 24 hours at the press time.

Shiba Inu Price May Tank Even Further On The Allegations

At the time of writing, SHIB was trading at $0.00001051 within the confines of a descending parallel channel. The “Dogecoin killer” was sitting below all the major moving averages with yesterday’s sell-off flipping the 100-day and 200-day Simple Moving Averages (SMAs) from support to resistance. 

In addition, the Relative Strength Index (RSI) at 39 near the oversold region suggested that SHIB was currently under the control of bears. Note that Shiba Inu’s downtrend will gain more traction once the RSI crosses the 30 lines into the oversold territory.

SHIB/USD Daily Chart

As such, increasing overhead pressure from the SMAs may extend the sell-off for the Shiba Inu price first below the $0.000010 psychological level and then to the middle boundary of the falling channel at $0.0000095. Additional lines of support are found at the lower boundary of the channel at $0.00000841. 

In highly bearish cases, the dog-themed altcoin may drop further to tag the $0.00000799 support floor or revisit the June 18 swing low at $0.00000712. This would bring the total losses to 32.3% from the current price.

In the unlikely scenario that the price turns up from the current levels, it would meet stiff resistance from the immediate resistance level at $0.00001055, embraced by the upper boundary of the descending parallel channel.

Higher than that, the Shiba Inu price will face yet another stubborn barrier at $0.00001075, where the 100-day and 200-day SMA’s appear to converge. The 50-day SMA at $0.00001222 presents another area of resistance. 

This technical setup shows that the path with the least resistance for Shiba Inu is on the downside. 

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