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Shiba Inu is a cryptocurrency inspired by the original Doge meme. Doge was first meme used in crypto as the logo of the now famous Dogecoin; this Dogecoin craze was ignited when the world’s richest man, Elon Musk, tweeted a meme relating to Dogecoin. Whenever Musk tweeted about the coin, the price of DOGE would surge. While the first tweet transpired in 2019, Musk still brings up Dogecoin today, often using the token as a vehicle to tweet about other issues in the financial sector.
Soon after Dogecoin shot up in price, the race to find the next great memecoin began. Fortunes were created and lost in trading these new tokens. One successful token, Shiba Inu (SHIB), shot up in price in 2021 and was referred to as the “DOGE killer” when it briefly passed Dogecoin in market cap.
SHIB gained more attention when it was revealed that Ethereum co-founder Vitalik Buterin had a wallet that held half of the SHIB supply, not from his buying the token but from the founder of Shiba Inu transferring SHIB to Buterin. Shiba Inu developers put faith in Buterin to not sell, but he ended up burning 90% of the tokens and donating the other 10%. This series of events sent trading activity into a frenzy.
Is Shiba Inu Here to Stay or Just a Fad?
Since the all-time highs in October 2021, SHIB has been a disaster for holders, seeing a steady down trend. The Shiba Inu token has a large market supply of over 1 trillion SHIB, providing a low barrier to entry because of its low price. Low cost means that anyone can easily join the memecoin movement.
Despite the fall in price, Shiba Inu has kept relevance in the crypto space, remaining a top-20 coin in market cap, per CoinMarketCap. The Shiba Inu token was created by an anonymous user who goes by the alias “Ryoshi,” based on the anonymous Bitcoin founder Satoshi Nakomoto. Also relating to Bitcoin is Shiba Inu’s woof paper, another meme based off Bitcoin’s white paper.
Shiba Inu History
Shiba Inu’s founder, Ryoshi, has made a point to not own any Shiba tokens. This move is designed to show a lack of bias over the project and to interact with it in a different manner than having a financial stake in the project. Ryoshi is also clear on a lack of structure in the Shiba Inu space. The coin encourages a creative and open environment for development of the ecosystem. Despite being a memecoin, the project has shown some promise, namely with the launch of ShibaSwap, a decentralized exchange (DEX).
Pros and Cons of Shiba Inu
Shiba Inu token has clear pros and cons; unfortunately, the cons weigh much heavier than the pros.
- ShibaSwap platform adding utility to the project
- Meme potential that can gain hype quickly
- Strong community
- No real innovation compared to other cryptocurrencies
- Bearish charts on a monthly time frame
- Majority of tokens in a few wallets
Shiba Inu Competition
The most notable competition to Shiba Inu is Dogecoin. However, Shiba Inu’s marketing ploy as the “Doge Killer” is likely dependent on Dogecoin doing well. Shiba Inu is attempting to profit off those late to DOGE but hoping to be early to SHIB. Dogecoin's relevance will in turn keep Shiba Inu relevant. However, when the crypto market is down, it can cause problems for anyone who has taken a large position on this token.
Research the token carefully and remember that it can shift easily because it has such a large supply and a very low price—one that’s dipped due to market concerns.
Shiba Inu is far from the only copy of Dogecoin –– more memecoins are continuously created, making it harder and harder for Shiba Inu to etch out a true community. The project is largely based around fun and price speculation as it does not have much real value in comparison to the other coins in the top-25 market cap.
How to Make Money With Shiba Inu
To make passive income from Shiba Inu, you can provide liquidity by staking the token, in turn earning APY. Sites like Crypto.com make it easy to start earning these rewards. If staking is too difficult a concept, then you could attempt to buy the token low and sell it high. This process is easier said than done with no guarantees that this token will rise in price.
How to Buy Shiba Inu
Shiba Inu can be purchased on exchanges such as Robinhood Markets Inc. (NASDAQ: HOOD) or Coinbase Global Inc. (NASDAQ: COIN). The token can also be swapped on a DEX such as Uniswap.
Is Shiba Inu Here to Stay?
Shiba Inu will be here as long as the community that supports it is. The underlying technology is underwhelming, and it is largely coat-tailing the hype that was surrounding Dogecoin, so it is unlikely this token can stand the test of time. But, if you are looking for a high-risk, high-reward option – and have some money to gamble – SHIB may be the token for you. Memecoins such as Shiba Inu can be a roller coaster ride, but they seem to be here to stay. Only time will tell us how much value the token can accumulate.
Frequently Asked Questions
Is Shiba Inu a good investment?
Shiba Inu can be a good investment for some traders, but you should research the token and only invest money you are prepared to lose because the market can be quite volatile.
Can you make money on Shiba Inu?
You can make money on Shiba Inu, but you should choose an investment strategy that works for you and adapts to current market trends.
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