What is Shiba Inu (SHIB) coin? How does it work? In this article, we will cover everything you need to know about SHIB. Read on to learn more!
In 2020, SHIB was created as an alternative to Dogecoin (DOGE). This meme cryptocurrency is named after a Japanese dog breed and was developed by an anonymous developer known as Ryoshi. SHIB operates on the Ethereum blockchain.
SHIB is an ERC-20 token that has a decentralized exchange, ShibaSwap, attached to it. The SHIB roadmap and associated components include the Shiba Artist Incubator, 10,000 non-fungible tokens called “Shiboshi” and an NFT game called the Shiboshi Game.
The Shiba Inu cryptocurrency had a total of 1 quadrillion tokens in circulation initially. Ryoshi allocated 50% of the tokens to Uniswap to provide liquidity, while the other half was sent to the wallet of Ethereum co-founder Vitalik Buterin. Buterin chose to burn the majority of the coins, 90%, and the remaining 10% was gifted to charity.
Crypto exchanges like Binance offer the opportunity to purchase and sell SHIB with trading pairs like SHIB/USDT and SHIB/DOGE.
Crypto traders or investors who have a fondness for pets have had a particularly stimulating 2021 due to the explosion of dog-themed crypto currencies. Amongst the surging coins was Shiba Inu (SHIB), which has been dubbed the “Dogecoin killer” and become a smash hit on social media. By 2022, SHIB was amongst the top rated crypto currencies by market cap.
So… What exactly is Shiba Inu Token (SHIB)?
An anonymous programmer, Ryoshi, who is as mysterious as the creator of Bitcoin, Satoshi Nakamoto, crafted the meme cryptocurrency, Shiba Inu (SHIB), in August of 2020. Its name comes from the Japanese breed of dog, Shiba Inu, and it operates on the Ethereum blockchain.
The initial supply of SHIB was 1 quadrillion. To provide liquidity, 50% of this was put into Uniswap, a decentralized finance (DeFi) protocol on the Ethereum blockchain. The other 500 trillion SHIB were sent to Ethereum co-founder Vitalik Buterin, who opted to incinerate 90%, with the remaining being donated to the India COVID-19 relief fund.
The Ecosystem of the Shiba Inu
In order to stay true to its theme of “dog” the Shiba Inu project employs terms used for canines in its system.
As per the “WoofPaper” (the whitepaper) the Shiba Inu project is a decentralized cryptocurrency that is driven by the community.
The SHIB environment involves a distributed exchange, ShibaSwap, where users can trade SHIB and other digital currencies. Also, liquidity can be injected into the Puppy Pools by “digging” in and rewards can be earned by “burying” ERC-20 tokens such as Doge Killer (LEASH) and Bone ShibaSwap (BONE).
The second token released by Shiba Inu, LEASH, is also hosted on ShibaSwap. There are 107,646 tokens in the circulating supply and it was initially used as a rebase token to track Dogecoin’s price. The developers of SHIB then decided to convert LEASH into an ERC-20 token. Individuals possessing LEASH tokens can invest them in the liquidity pool, and be rewarded with xLEASH.
The BONE token has a total supply of 250,000,000 tokens that will enable its nicknamed community, the ShibArmy, to cast their ballots on future propositions of Doggy DAO.
Shiba Inu is promoting an art incubator that utilizes non-fungible tokens (NFT) aptly named Shiba Artist Incubator. This is a call for all dog-inspired artists around the globe to join in and make their Shiba Inu artwork available in the NFT market, with works such as paintings, photography, and digital renderings.
In October 2021, the SHIB team released 10,000 “Shiboshi” NFTs on the Ethereum blockchain and declared a forthcoming NFT game called Shiboshi Game. The announcement also included a novel token-burning system. Whenever Shiboshi holders prefer to modify the name of their NFTs, USD 100 worth of SHIB needs to be paid as a fee which will be sent to the SHIB burn wallet and destroyed.
What do we mean by “meme coins”?
A plethora of meme-based cryptocurrencies, such as Dogecoin and Shiba Inu, are broadly referred to as meme coins or meme tokens. For instance, Dogecoin and Shiba Inu owe their origin to the meme of a cute Shiba Inu pooch, while PepeCoin (MEME) was created as a nod to Pepe the Frog, a widely-recognized anthropomorphic frog meme.
Unlike mainstream cryptocurrencies like bitcoin and ether, meme coins often come with limited utility and short life spans. This means they often cannot be traded on major trading platforms. Moreover, due to the large supply of meme coins, their prices are typically very low. Even the most popular ones, such as SHIB and DOGE, cost only a penny or less.
In 2021, meme coins started to gain traction in the cryptocurrency market due to the “meme stock” trend of GameStop (GME) and AMC Entertainment (AMC). A Reddit group known as SatoshiStreetBets saw DOGE as the crypto equivalent of GME and made it a joke to increase its price. Consequently, traders have been shifting their focus to the meme coins in order to cash in on the rally. In May 2021, DOGE’s price skyrocketed to an all-time high of 73 cents, with a growth of 2,000% over the course of five days.
It is essential to recognize that trading and investing in cryptocurrency carries a considerable financial danger. Meme coins are erratic, thus it is advisable to DYOR and never put in what you cannot afford to lose.
Wait… But Why is SHIB so popular?
In 2020, during the global pandemic, the cryptocurrency market experienced a crash before shooting up as many retail investors purchased digital assets such as BTC and ETH as a form of protection from inflation. This pattern in the stock market has resulted in the success of meme coins, with some attributing the success of SHIB to Elon Musk’s influence. After the Tesla CEO jested about Dogecoin on TV in May 2021, the meme coins were able to capitalize on the newfound fame of meme tokens. \
SHIB has been able to distinguish itself from other similar coins by introducing its Shiboshi NFTs and game. These tokens sold out at an astonishing rate in less than 35 minutes, showing the power of the NFT market. The ShibaSwap platform was used to issue the NFTs, and by allowing owners to name their Shiboshis and implement a token burn, Shiba Inu could be looking at a period of continued growth.
Final Considerations
The end of this piece brings us to the last reflections.
Shiba Inu lately released Shiboshi NFTs and the impending Shiboshi Game. SHIB could possibly outpace its competitor, DOGE, with its expanding ecosystem.
Nevertheless, it is important to do DYOR before investing in any cryptocurrency, particularly meme coins. They can be more unpredictable than leading-market-cap coins, as much of their worth is contingent on social media buzz.
What’s Zookram?
Zookram is the ultimate guide to learning web3 + crypto. We cover everything you need to know, from how to buy each cryptocurrency to how to mint NFTs.