Meme coins featuring an adorable Shiba Inu as their mascot have become the talk of the town in the world of cryptocurrencies. Dogecoin (DOGE) was the first of its kind, created as a playful experiment in 2013 during the height of Bitcoin and the popular "doge" meme. As both Bitcoin and the Shiba Inu meme gained significant traction, it has become challenging to come across a meme coin that does not have a direct connection to the beloved canine breed.
To the astonishment of the creators, Doge became quite popular soon after its release. However, many of its users eventually lost interest in the project until it was reintroduced into the popular consciousness by Elon Musk and users on a cryptocurrency forum on Reddit called SatoshiStreetBets. The path from a small worthless memecoin with no utility to one of the largest cryptos in the world blazed a trail for thousands of other memecoins (though most have been pitiful failures).
In August 2020, Shiba Inu (SHIB) emerged onto the scene with a mission to surpass the reigning champion, Dogecoin. SHIB was even given the nickname, "Doge Killer." On October 27th of that same year, Shiba Inu surpassed Dogecoin's market cap, becoming the top dog in the meme coin world. However, Dogecoin has since regained its title as the most valuable meme coin. Nonetheless, SHIB still remains one of the largest cryptocurrencies worldwide, outranking most legitimate coins. To further bolster their presence, the Shiba Inu team launched ShibaSwap, a decentralized exchange (DEX) where users can stake their Shiba tokens to earn interest. More recently, the team unveiled plans to enter the layer-2 arena with their own network, dedicated to scalability.
What is Shiba Inu Token?
Shiba Inu is like an energetic firecracker. It is small relative to a handful of other cryptocurrencies such as Bitcoin, but has the potential to create a lot of excitement and noise. Despite its small size, Shiba Inu has made a big impact on the cryptocurrency industry and has attracted a lot of attention from investors and skeptics. It is a unique and volatile asset that has the potential to create big moves and generate big returns, but it also comes with its share of risks.
Shiba Inu was founded by an anonymous person with the pseudonym Ryoshi. Shiba is an ERC-20 token on the Ethereum network, which allows the developers to build the ShibaSwap DEX and integrate other tokens and NFTs into the platform’s ecosystem. The maximum supply of Shiba was set to 1 quadrillion tokens, which is much higher than most cryptocurrencies. The enormous token size caused Shiba’s price to be much lower than most assets with similar market capitalizations.
Half of the Shiba tokens were locked into Uniswap for liquidity providers, while the other half was sent to Ethereum founder Vitalik Buterin. Originally intended to be burned, Buterin's 500 trillion Shiba tokens were worth billions of dollars by May 10, 2021, surpassing the value of any other token in his wallet.
More concise: Buterin donated 20% of his Shiba tokens (100 trillion, worth over $1 billion) split between two charities, including the India COVID-Crypto Relief fund. This marked one of the biggest single donations made with cryptocurrency, bringing legitimacy to Shiba and the overall market. The donation caused a drop in Shiba's price due to the charities selling a large portion of the supply, but it also brought attention to the coin and drove the price back up.
Shiba Inu vs. Dogecoin
Shiba Inu is built on top of Ethereum, which means it can take advantage of smart contracts to create much more advanced applications, like DEXs and NFTs. The token released their ShibaSwap DEX back over the summer, and they have recently released "Shiboshis" which is a collection of 10,000 NFTs. Dogecoin’s code is based on Bitcoin’s and lacks compatibility with smart contracts. Due to this, Doge can only be used as an internet currency, a speculative investment and as an (unstable) store of value.
ShibaSwap adds new ways to use Shiba tokens, providing more value to its users. ShibaSwap launched with incentivizes for new users to buy Shiba tokens and stake them in liquidity pools, helping adoption of the DEX. However, this tactic is nothing new on the Ethereum network. Many decentralized applications (dApps) already provide staking pools, and when the liquidity mining incentives run out, there will be some sell pressure.
Shiba Inu and Doge are currently competing to be the goodest boy. Right now, Dogecoin is in the lead. Will the Doge army be able to come back? At the time of writing, Dogecoin’s market capitalization is about $11.5 billion, as compared to Shiba Inu's $5.5 billion market cap.
What is ShibaSwap?
In July 2021, the highly anticipated ShibaSwap platform finally launched, providing users with a plethora of functionalities. With the Dig feature, users can deposit tokens to the DEX and receive BONES in return. Staking in any of these pools can result in substantial interest gains, but 66% of the returns will be locked for six months. This lock-up period aims to deter stakers from selling off their tokens in large quantities and should contribute to maintaining their prices.
The Bury tool allows users to stake SHIB, LEASH and BONE to earn passive income on your tokens. It is not entirely clear where the Bury interest comes from – most likely new issuance, which may cause inflation. ShibaSwap should certainly be considered when deciding whether Shiba Inu is a good investment, but it is far from the only factor. In fact, a single tweet from Elon Musk (or any similarly influential figure) could be dramatically more impactful than the entire platform itself.
On the ShibaSwap launch day, Discord Admin Shiba Cat, stopped by Benzinga's "Moon or Bust" to dive deep on the DEX. Watch below.
Is Shiba Inu Safe?
Shiba Inu is a high-risk, high-reward investment with potential for significant gains if its meme stays relevant. While lacking innovation in DeFi, the ShibaSwap platform could drive popularity. Its presence on Ethereum gives it more utility than Dogecoin, but performance is not guaranteed. Its success depends on promotion and hype around the token.
There are also distinct security risks in depositing cryptocurrencies into anonymous projects like ShibaSwap because the code may allow the developers to scam investors out of their cryptos. Scams that cost users millions of dollars are becoming more and more common in the wild west that is DeFi. This possibility can be ruled out by experienced code auditors if they can access the code, but ShibaSwap hasn’t been audited yet.
Where to Invest in Shiba Inu
Because of its recent rise in popularity, Shiba was listed on multiple trading platforms including OKX and eToro. You can also buy Ethereum on any exchange that supports it (which is most exchanges) like WeBull or Uphold and swap it for Shiba on Uniswap. It is especially easy to buy Shiba on Crypto.com with their app (on iOS and Android). All you need to do to purchase it is set up an account and verify your identity. In the United States, verifying your identity requires your address, Social Security number and driver's license. Once you have your account set up and verified, you can invest in Shiba with USDT (a stablecoin pegged to the USD that can be purchased on crypto.com as well).
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Shiba Inu Trading Signals
IntoTheBlock provides a fantastic suite of trading signals and fundamentals to help you decide whether Shiba Inu is a good investment.
Crypto Price Movements
Although the market is currently quite fearful and pessimistic, investing in the right cryptocurrencies over the long-term may still prove to be very profitable. Many blockchain enthusiasts and long-term investors are still bullish on digital assets from a macro perspective, albeit most cryptocurrencies are trading well below their all-time highs seen last year.
So, is Shiba Inu a Good Investment?
Reworded ardently and made galvanizing:
Investing in Shiba Inu can potentially pay off, but only if certain conditions are met - primarily, if the meme can rekindle its popularity. Without a doubt, it's not a safe or guaranteed investment, especially in times of market uncertainty and pessimism. Investing in Shiba is not for the faint-hearted, as it carries significant risk. However, with sufficient luck and liquidity, it could very well skyrocket once again. And with the bull market anticipated to make a comeback this year, Shiba Inu may very well soar to new heights.
The India COVID-Crypto Relief Fund has already moved 20 trillion Shiba out of its main wallet, though it is difficult to know exactly how much of the total donation has been sold. We don’t even know which charity the other 50 trillion Shiba donation went to. Most of the other half of Shiba’s supply that was locked into Uniswap hasn’t been minted yet, which will make selling the Shiba affect the price of the token even more.
Is Shiba Inu a Good Investment?
Shiba Inu is not likely to be a good investment in the long term when compared to most other assets.
Can Shiba Inu hit 1 cent?
Shiba Inu has too high of a circulating supply to ever hit 1 cent.
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About Henry Stater
Henry is an expert in all things crypto. He stays up to date with all the latest coins, platforms and technologies in the field. He has particular expertise in the burgeoning decentralized finance ecosystem and loves trying out all the new platforms. He also always follows major events in other financial markets and geopolitics as a whole, especially when an event’s effects ripple through the crypto market.