Providing you're doing the exercise correctly with good form, knees not caving inward, hips back, etc..
Shrimp squat is one of the few leg bodyweight exercises that can be really challenging, and it's also great for knee stability! Because of the exercise, it can allow you to gain flexibility while also developing strength. This will carry over into good posture as well. In short, it's not only safe but makes your body less injury prone going forward. The downside is that quite a bit of strength and mobility are required as a prerequisite for this exercise. If you cannot do this exercise with good form, you can try Bulgarian split squats, which mimic the shrimp squat with the exception of using a bench to stabilize yourself.