SHIB Sells Out 20,000 Sheboshi NFTs But Should Investors Fear Death Cross?

8 months ago 3

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Amid the rising excitement regarding developers’ rollout of Sheboshi tokens as the first steps of upgrading the Shibarium ecosystem, bullish and bearish factors continue to affect the short-term investment potential of Shiba Inu (SHIB).

This week, the high US Consumer Price Index (CPI) may have pushed SHIB towards a bearish death cross. However, positivity around the selling out of the Sheboshi NFTs and recent whale buying balances sentiment.

Sheboshi NFTs Can Test DN404 Standard

SHIB developers announced that the new Sheboshi tokens sold out yesterday. One congratulated holders of the Shiboshi and LEASH tokens, the first two recipients of the Sheboshi NFTs. The remaining 20,000 tokens sold out to the general public within five minutes.

The Sheboshi ‘NFT‘ project, although the term ‘NFT’ is used loosely here, is among the first to leverage the Divisible NFT (DN404) standard. Two pseudonymous smart contract developers announced ERC-404 as an experimental token standard earlier this year. One developer, cygaar, who worked on DN404, said in a post on X that ERC-404 fails in certain circumstances.

“The premise of ERC404 was to create a single contract that can act as both a fungible and non-fungible token. However, this can’t be done without introducing exploits and breaking standards,” cygaar wrote.

Read more: ERC-404 Tokens: A Complete Guide

DN404 offers the liquidity of ERC-20 tokens like Ethereum, with the rarity of ERC-721 tokens like traditional NFTs. It uses two smart contracts: a base ERC-20 contract and a “mirror” ERC-721 contract.

This hybrid approach will give developers new ways to imbue Sheboshis with utility in Shiba Inu’s (SHIB) ecosystem. Developers have indicated that Sheboshi swaps will soon go live on Uniswap and ShibaSwap.

The inclusion of Sheboshi NFTs will allow decentralized exchanges to test if DN404 solves ERC-404’s problems. Uniswap will give investors the privilege of liquidity and access to the SHIB ecosystem.

SHIB Developers Thwarted by Death Cross

SHIB has enjoyed upward momentum this month due to anticipated upgrades to its Shibarium ecosystem. Whales recently sparked bullish narratives by increasing the number of large transactions. On Thursday, a SHIB whale whose previous actions spiked SHIB’s price in 2021 bought up almost $8 million worth of the token.

Last week, SHIB developer LUCIE confirmed that developers are eyeing the end of 2025 as a target date to complete the upgrade of Shibarium. The message followed an announcement by prominent yet pseudonymous SHIB developer Shytoshi Kusama of an intention to move SHIB beyond meme hype into practical utility.

However, the token has had a difficult week amid US inflation data that beat expectations of 2.9%. The 200 and 50-day moving averages appear to converge, a phenomenon known as the “death cross.” A death cross generally precedes a short-term bearish reversal.

Read more: Shiba Inu — A Beginner’s Guide

If the Shiba Inu price breaks out from this trajectory, it may stabilize and move toward the $0.0000093 level. Otherwise, the price could fall and retest lower levels. BeInCrypto has contacted SHIB developer Shytoshi Kusama’s comment but had to hear back at press time.