Google shows the picture of a dog when we type Shiba Inu. But is there something more to it? In the cryptocurrency market, there are many coins, and one of these is the popular Shiba Inu Coin. It is a decentralized cryptocurrency that has a satirical touch to it.
In this blog, we’ll cover what Shiba Inu is, the reasons for its popularity, and how to invest in it.
How Did Shiba Inu Coin Originate?
Shiba Inu coin cryptocurrency is an Ethereum blockchain network altcoin (alternative coin) that was created in August 2020. It was made by a person known as “Ryoshi.” Just like the creator of Bitcoin who goes by the name Satoshi Nakamoto, the founder of Shiba Inu crypto chose to be pseudonymous too. Shiba Inu personality is derived from a Japanese breed of dog, the same dog from a Doge meme.
It is also known by names like “meme coin” and “Dogecoin Killer,” as Shiba Inu is a competitor of Dogecoin. Both Shiba Inu and DogeCoin are meme coins that were launched as a parody.
The Mechanism of Shiba Inu
Shiba Inu crypto has a mechanism similar to words associated with a dog. All the information about the Shiba Inu coin is mentioned on the website ShibaToken.com, known as the Shiba Inu Ecosystem. This information document is known as the “woof paper.”
According to this paper, Shiba Inu was the solution to a simple question. “What would happen if a cryptocurrency was 100% run by its community?” According to Shiba Inu founder Ryoshi, he said that we are an experiment in decentralized spontaneous community building.
This decentralized community building is called the SHIBArmy, which has over 500,000 members with the following founding principles
- The project was zero, had zero, and contained the spirit to create something out of nothing.
- It was not an already existing community.
- And it professed love for the Japanese dog, Shibu Inu.
As mentioned above, the Shibu coin is hosted by an Ethereum-based blockchain instead of having its blockchain. Ryoshi says that he chose this system because it was secure, well-established, and decentralized.
The Shiba Inu Ecosystem
The Shibu crypto has three tokens.
- Shiba Inu (SHIB)- This is the primary cryptocurrency of Shiba Inu. This currency is highly supplied, i.e., one quadrillion (1000 trillion).
- Leash (LEASH)- This is the second type and stands on the other end of the ecosystem spectrum with a supply of 107,646 tokens.
- Bone (BONE)- This currency stands in the middle with a supply of 250,000,000 tokens. This token has a different purpose. It is a governance token that the SHIBArmy uses to vote on upcoming proposals.
The Shiba Inu ecosystem further includes
- ShibaSwap: ShibaSwap is a place to trade cryptocurrencies. It is a decentralized finance platform. The three tokens are bought and sold here.
- Shiba Inu Incubator: The incubator’s purpose is to see beyond the creation of photographs, art, and paintings and discover something new
- Shiboshis: These are Shiba Inu’s 10000 NFTs written on the Ethereum blockchain, which has different traits and is unique.
Shiba Canine Terminology
In the world of cryptocurrencies and traditional financial markets, specific terminologies are used. For example, ROI (Return on Investment), Buy and sell, and liquidity. But in the case of Shiba Inu, the terminology is different from the usual one.
It is known as the Canine Terminology. These canine terms are written on the woof paper regarding how to use Shiba Inu coins and how to generate returns. On ShibaSwap, these coins are used to “dig” (provide liquidity), “bury” (put the coin on stake) and “fetch” (exchange coins).
According to the “woof” paper, these coins provide returns known as “woof” returns in the form of “bone tokens.” In the end, the bone tokens are further distributed to token pools called “Puppy Pools.”
What Are The Reasons For Popularity Of Shiba Inu
The Shiba Inu coin has been the talk of many towns for plenty of reasons. Even though the price of the coin is currently low, it is taking over the crypto market and is an excellent choice for investors.
The Shiba Inu coin became famous because of the following reasons.
- Tesla founder Elon Musk showed his interest in Shiba Inu which led to an enormous shot up in the price, i.e., 300 percent.
- On the other hand, the 40% drop in prices was caused when Ethereum Blockchain Network founder Vitalik Buterin donated 50 trillion Shiba Inu coins to the Indian Covid Relief fund.
- As mentioned above, hype regarding the Doge meme caught the attention of several crypto investors.
- The Japanese dog-based crypto was an utterly unusual direction to the world of the cryptocurrency market and overall business.
What Makes A Shiba Inu Special?
- Memes can inspire innovating cryptocurrencies and are valued highly, i.e., worth $30 billion.
- It is now the 11th biggest cryptocurrency in terms of value.
- The coin also made strides ahead of its preexisting competition, Dogecoin.
- Its value remains higher than well-developed Avalanche, Polygon, and Terra coins.
- Memes and popular social media gimmicks take up attention and then fizzle out. In the case of Shiba Inu, the coin persisted when Shiba Inu founder Ryoshi gave half of the Shiba supply to Ethereum blockchain co-founder Vitalik Buterin.
- Shiba Inu’s famous dog world terminology distinguishes it from other cryptocurrencies.
- It has its own NFTs (Non-Fungible Tokens) that are gaining popularity.
- It is the first cryptocurrency that established its ecosystem, having three tokens- SHIB, LEASH, and BONE.
- It has its decentralized exchange called the ShibaSwap.
- Despite its strict regulations, Korbit, one of the South Korean crypto exchanges, announced that Shiba Inu would be allowed to trade.
5 Reasons You Should Get Shiba Inu Coin
Is Shiba Inu a good investment? Shiba Inu is becoming a stable cryptocurrency. On the contrary, many types of investors in the crypto market have their criteria for investing, keeping the pros and cons in mind. Despite being a meme coin, there are several reasons why you should Buy Shiba Inu coins.
- You are willing to take risks – Since any investment has risks, one can learn about the coin and its future. For example, Shiba Inu will be stepping into the world of Metaverse and terming its project, Shibverse. Additionally, they will launch Shibarium, i.e., a blockchain update that will lower the transaction costs of the coin, resulting in easy and affordable access to Shiba Inu Coin.
- Listed on Major Cryptocurrency Exchanges– Many company’s stocks gain high value when listed on famous stock exchanges like New York Stock Exchange; Shiba Inu is also named in WazirX exchange, a subsidiary of Binance, Uniswap, Kukoin, Huobi Global, eToro. This ensures security and transparency.
- Powered by Ethereum – Ethereum is a well-developed blockchain network and a home to global payments, is the right place to foster Shiba Inu. Ethereum has real-world use, and Shiba Inu would grow in this network.
- Provide security with a Non-Custodial Exchange – Investors, after acquiring profits from their investments, search for a secure place to hoard them. Due to hacking threats in digital currency exchanges, most investors invest in hot and cold wallets to store their tokens. The SHIB token is unique. It has its decentralized exchange. The platform doesn’t harbor multiple tokens compared to other digital currencies and ensures safety from hackers.
- Token Price is Low – For the ones who are new, beginners, and risk-averse, Shiba Inu is a good option. To test the waters, the token price of SHIBA INU is $0.00001 per (SHIB/USD) vis-a-vis the price of Bitcoin, i.e., $19,129.24.
5 Reasons You Should Not Get Shiba Inu Coin
Now, should you make it a part of your portfolio? Owning a Shiba Inu adds value to your portfolio, but as a meme coin, it has entertainment value more than intrinsic value. It is undoubtedly a strong currency, but it has some steps to reach the goal of a real-world utility coin. These are the five key reasons you should not get a Shiba Inu coin.
- Struggle to compete with others – Since Shiba Inu is a payment coin, its biggest rival is Bitcoin. Even though Shibu Inu has gained popularity and market share, it is still around Bitcoin. Bitcoin’s market capitalization is 376.65 billion, whereas Shiba Inu’s capitalization is around 5 billion. If Shiba Inu needs to be a real competitor, it has to have some utility.
- Growth on perceived value than actual value – Shiba Inu doesn’t have an inherent value. It was more from hype than any real-world utility. After the hype and growth it saw, it only started developing real-world uses. Also, the level of volatility is high. Shiba Inu’s ten accounts nearly control 65% of all coins, and just 100 own 81% of all coins.
- Significant Risk and Low Rewards – Shiba Inu showed groundbreaking growth and could even defeat its twin Dogecoin, but the results were short-lived. It is volatile, with significant returns to no returns at all. The average holding period for Shiba Inu is just 13 days, according to Coinbase.
- Lacks Utility – There is a lack of real-world usage if you buy Shiba Inu. There isn’t much unique about SHIB’s fees, structure, or practical application.
- Slow Technology Development – The Shiba Inu coin protocol has yet to go to technological development since the coin was launched. The team of Shiba Inu still needs to release a roadmap for upcoming updates. Due to this, Shiba Inu needs to catch up to many coins regarding technological advances.
Platforms To Buy Shiba Inu Coin
Due to its popularity, many crypto exchanges offer Shiba crypto on their platforms. Here are some best exchanges where you can buy Shiba Inu coin.
- E-Toro – One of the best avenues for buying Shiba Inu, eToro is a regulated crypto exchange and is licensed in many countries like the US, UK, Australia, and Europe. The minimum deposit requirement for US and UK users is just $10. eToro also supports fractional crypto purchases. Some famous tokens traded at eToro include Shiba Inu, Apecoin, Bitcoin, Cardano, XRP, Litecoin, and Dogecoin.
- Crypto.com – For experienced investors, Crypto.com is another good platform. Once you have opened an account, you can buy the coin with a debit card.
- Coinbase – This is an excellent place for first-time investors to buy Shiba Inu. This is a user-friendly place. To buy Shiba coins, you need to open an account, upload your ID and then pay via debit or credit card.
The Shiba Inu coin is noteworthy for its popularity, creative returns, and its focus on decentralized community building. Be it Shiba Inu or any other coin, the rise and fall of cryptocurrencies are inevitable. Knowing more about the Shiba Inu lifespan, its utility, and expected returns is an analysis that needs to be done by all investors. Henceforth, the Shiba inu coin future depends on how it grows, how well investors accept it, and how the meme coin takes a dominant role in the sea of mature cryptocurrencies.