What Is Shiba Inu (SHIB)?
Basics
Crypto enthusiasts with a soft spot for pets have experienced an exhilarating journey in cryptocurrencies. Previous years have witnessed a surge of dog-themed digital assets, igniting excitement among traders. Shiba Inu (SHIB) stands out among these rising stars with its notable price surge.
Garnering the nickname "Dogecoin killer," SHIB has garnered immense popularity on social media platforms. As of the latest available data, SHIB is prominent among the top cryptocurrencies based on market capitalization. In addition, it holds one of the top spots on CoinMarketCap, placing it close to its competitor, DOGE.
What Is Shiba Inu (SHIB)?
Introducing SHIB, a cryptocurrency inspired by the Japanese dog breed Shiba Inu! Created in 2020 by an anonymous developer named Ryoshi, SHIB was designed as an Ethereum-based alternative to Dogecoin (DOGE).
As an ERC-20 token, SHIB operates within a decentralized exchange known as ShibaSwap. The SHIB ecosystem encompasses various components, including the Shiba Artist Incubator, an NFT art incubator, the issuance of 10,000 "Shiboshi" NFTs, and an engaging NFT game called Shiboshi Game.
During its inception, Shiba Inu had a circulating supply of 1 quadrillion tokens. To establish liquidity, Ryoshi locked 50% of the tokens in Uniswap, while the remaining 50% was sent to the wallet of Ethereum co-founder Vitalik Buterin. In a surprising move, Vitalik chose to burn 90% of the tokens and donate the remaining 10% to charitable causes. SHIB can be bought and sold on various crypto exchanges offering different trading pairs, such as SHIB/USDT and SHIB/DOGE.
Shiba Inu (SHIB): What You Need to Know
SHIB, an Ethereum-based meme cryptocurrency, emerged in August 2020. Created by an enigmatic figure known as Ryoshi, whose identity mirrors the mysterious origins of Bitcoin's creator Satoshi Nakamoto, SHIB draws inspiration from the renowned Japanese dog breed, Shiba Inu.
SHIB debuted by allocating 50% of its inventory to Uniswap. Uniswap, a prominent decentralized finance (DeFi) project operating as an automated market maker on the Ethereum blockchain, has achieved significant success. The remaining 500 trillion SHIB tokens were sent to Ethereum co-founder Vitalik Buterin. Vitalik chose to burn 90% of the tokens, directing the remaining portion to support the India COVID-19 relief fund.
Shiba Inu Ecosystem
Within the Shiba Inu ecosystem, a canine-themed language prevailed in cryptocurrency. As outlined in the "WoofPaper," Shiba Inu is an inclusive initiative focused on fostering a decentralized cryptocurrency community.
At the heart of the SHIB ecosystem lies ShibaSwap, a decentralized exchange where users can trade cryptocurrency. Additionally, participants can delve into the Puppy Pools to provide liquidity or "bury" their tokens within smart contracts, enabling them to earn interest alongside SHIB using two other ERC-20 tokens, namely Doge Killer (LEASH) and Bone ShibaSwap (BONE).
LEASH, Shiba Inu's secondary token, can also be found on ShibaSwap. With a circulating supply of 107,646 tickets, LEASH initially served as a rebase token to mirror Dogecoin's price. SHIB developers transformed LEASH into an ERC-20 token. As a result, LEASH holders can stake their tokens within the liquidity pool, earning xLEASH as a reward.
As a governance token, BONE possesses a total supply of 250,000,000 tokens. It will empower the ShibArmy (a moniker bestowed upon the community) to vote on forthcoming proposals within Doggy DAO.
Shiba Inu aims to introduce the Shiba Artist Incubator, an art incubator centered around non-fungible tokens (NFTs). This platform seeks to invite artists worldwide, particularly those inspired by our four-legged friends, to exhibit their Shiba Inu-themed artworks across various mediums, such as painting, photography, and digital rendering.
Later, the SHIB team made a significant stride by releasing 10,000 "Shiboshi" NFTs on the Ethereum blockchain. Along with this launch, they announced an upcoming NFT game titled Shiboshi Game. Furthermore, the team introduced a new token-burning mechanism: Shiboshi holders desiring to alter the name of their NFTs must remit a fee of USD 100 worth of SHIB, which will subsequently be burned, finding its way to the SHIB burn wallet.
Meme Coins: More Than Just Fun
Dogecoin, Shiba Inu, and hundreds of other meme cryptocurrencies are known as meme coins or meme tokens. For example, Dogecoin and Shiba Inu were inspired by memes of an adorable Shiba Inu dog, while PepeCoin (MEME) was inspired by Pepe the Frog, a popular anthropomorphic frog meme.
Most meme coins are created with limited utility or use cases and are more short-lived than mainstream cryptocurrencies like bitcoin (BTC) and ether (ETH). Therefore, many meme coins cannot be traded on major trading platforms. Also, the price of meme coins is generally low due to their vast supply. Even the popular ones like SHIB and DOGE only cost a fraction of a cent.
Meme coins have been taking back seats to the more prominent market capitalization cryptocurrencies. Still, they started to rise following the “meme stock” trend of GameStop (GME) and AMC Entertainment (AMC) in 2021. In January 2021, a Reddit group named SatoshiStreetBets considered DOGE the crypto equivalent of GME and joked about pumping its price up.
As the DOGE price fell, traders turned their attention to Shiba Inu and other meme coins, looking to gain gains off the rally. DOGE price was driven to an all-time high of 73 cents in May 2021, with an over 2,000% increase in just five days. Still, it’s important to remember that cryptocurrency trading and investing carry high financial risk. Meme coins can be super volatile, so you should always DYOR and never invest what you cannot afford to lose.
What Makes SHIB So Popular?
In 2020, during the global pandemic, the cryptocurrency market experienced both a crash and an explosive resurgence. Retail investors sought refuge in digital assets like bitcoin (BTC) and ether (ETH) to protect against inflation. This market phenomenon also gave rise to the emergence of meme coins.
Notably, SHIB gained significant popularity, which can be attributed to various factors, including social media influence and the impact of Tesla CEO Elon Musk. Musk's mention of Dogecoin on television in May 2021, causing a drop in its price, inadvertently contributed to the growing popularity of SHIB and other meme coins. Since January, SHIB's price has surged by over 60,000,000%.
What sets SHIB apart from other "puppy coins" is its Shiboshi NFTs and the associated game. Riding the wave of NFT market hype, the 10,000 Shiboshis were quickly sold out within 35 minutes. Shiba Inu introduced its NFTs through the ShibaSwap platform, and with the naming of Shiboshis by their owners and the subsequent SHIB token burn triggered by this action, coupled with the ongoing development of the Shiboshi NFT game, the popularity of Shiba Inu has the potential to continue expanding.
How to Buy SHIB Cryptocoin
To buy SHIB Cryptocoin, you can follow these general steps:
- Choose a Cryptocurrency Exchange: Select a reputable cryptocurrency exchange that supports SHIB. Some popular exchanges include Binance, Coinbase, Kraken, and KuCoin.
- Sign Up and Complete Verification: Create an account on the chosen exchange and complete any necessary verification processes, such as providing identification documents, to comply with the exchange's regulations.
- Deposit Funds: Deposit funds into your exchange account. Most exchanges allow you to deposit funds using fiat currency (USD, EUR, etc.) or other cryptocurrencies (like Bitcoin or Ether).
- Locate SHIB: Find the SHIB trading pair on the exchange once your account is funded. This is typically listed as SHIB/ETH or SHIB/USDT, indicating SHIB's pairing with Ethereum or a stablecoin like Tether.
- Place an Order: Choose the type of order you want to place. You can either set a specific price (limit order) or purchase at the current market price (market order). Specify the amount of SHIB you wish to buy and review the details before confirming the order.
- Securely Store Your SHIB: After your purchase, transfer your SHIB coins from the exchange to a secure cryptocurrency wallet. It's generally recommended to use a hardware or software wallet that controls your private keys.
When selecting a cryptocurrency exchange, remember to conduct thorough research and consider factors such as fees, security, liquidity, and user reviews.
Conclusion
Since its conception, Shiba Inu has experienced notable growth, driven by the introduction of Shiboshi NFTs and the highly anticipated Shiboshi Game. These developments can enhance SHIB's utility and ecosystem, possibly surpassing its competitor, DOGE. However, it is crucial to exercise caution and conduct your research (DYOR) before investing in cryptocurrencies, mainly meme coins. Meme coins tend to exhibit greater volatility than cryptocurrencies with larger market capitalizations, as their value is primarily influenced by social media sentiment.