What is Shiba Inu Coin (Cryptocurrency)

After reading the article you will be able to understand 

• What Is Shiba Inu?
• Understanding Shiba Inu
• The Shiba Inu Ecosystem
• How to Buy Shiba Inu
• Shiba Inu Investing Considerations
• Why Is Shiba Inu Called the Dogecoin Killer?
• Why Was Shiba Inu in the News in October 2021?
• Is Shiba Inu a Risky Investment?

What is Shiba Inu?

Shiba Inu (SHIBUSD) is an Ethereum-based altcoin (a cryptocurrency other than Bitcoin) using the Shiba Inu as its mascot, a Japanese hunting dog breed. Shiba Inu is widely regarded as a viable alternative to Dogecoin; in fact, Shiba Inu supporters refer to it as "the Dogecoin killer."

Shiba Inu was developed in August 2020 by an unknown individual or group of individuals known as "Ryoshi." However, it was virtually unknown until a few months ago, when Musk tweeted cryptic messages regarding the Shiba Inu puppy. Those tweets signaled to investors that he was shifting support away from Dogecoin and toward Shiba Inu. In addition, a Change.org petition requesting that Shiba Inu be included in the Robinhood trading platform has received a lot of attention. It just introduced a series of nonfungible tokens known as "Ishibashi's."

Shiba Inu, dubbed the "Dogecoin killer," was produced in August 2020. Vitalik Buterin gave more than 50 trillion SHIB (more than $1 billion at the time) to the India COVID-Crypto Relief Fund on May 13.

The cryptocurrency's exchange price significantly increased in early October 2021. Its value surged by 240 percent in a week. However, the price decreased by nearly 30% during the first week of November.

which are cryptocurrencies related with a theme—such as the Shiba Inu dog in the case of Shiba Inu and Dogecoin—but are frequently introduced as a parody or inside joke rather than as a digital commodity with usefulness. While Dogecoin was established in December 2013, Ryoshi, an unidentified individual or group, invented Shiba Inu in August 2020.

IMPORTANT TAKEAWAYS

• Shiba Inu is an Ethereum-based cryptocurrency whose mascot is the Shiba Inu hunting dog.
• It is commonly regarded as an alternative to Dogecoin and is dubbed "the Dogecoin killer" by its fans, known as the SHIBArmy.
• Ryoshi, a person or group, founded Shiba Inu in August 2020.
• Shiba Inu's value more than tenfold increased in October 2021, giving it a market capitalization of $35 billion (as of October 31, 2021) and putting it 10th among all cryptocurrencies by this metric.

Shiba Inu's value more than tenfold increased in October 2021, giving it a market capitalization of $35 billion (as of October 31, 2021) and putting it tenth among all cryptocurrencies by this metric. 1 On Oct. 4, 2021, Tesla founder Elon Musk tweeted a picture of his new Shiba Inu dog Floki, which sparked the meme coin's price boom. Because Musk is a prominent backer of Dogecoin and the self-proclaimed "Dogefather," his cryptic tweets frequently generate increased volatility in the cryptocurrency market.

Shiba Inu's price spike in October 2021 nearly caught up to Dogecoin's $36.9 billion market value (as of Oct. 31, 2021), after temporarily stopping it. It remains to be seen whether Shiba Inu will become the "Dogecoin killer" that its increasing fan base, known as the SHIBArmy, predicts. However, by October 2021, the astounding price rises of this hitherto unknown cryptocurrency have made Shiba Inu the tail that wags the Dog (coin).

Shiba Inu Understanding

The Shiba Inu ecosystem's guiding principles are outlined in a "woof paper"3 (probably a pun on white paper), which is published on the ShibaToken.com website.

Shiba Inu was created in response to a simple question: "What would happen if a cryptocurrency project was entirely managed by its community?" Ryoshi, the company's creator, attributes its creation to an "experiment in decentralized spontaneous community development." According to Ryoshi, the strength of collective decentralization may generate something far more powerful than a centralized team could ever develop.

The SHIBArmy's nearly 500,000 members support its original beliefs, which are as follows:

• The project began with a zero, in the concept of producing something out of nothing;
• It was not formed by a pre-existing community or team; and
• Open admiration for Shiba Inu dogs.

Shiba Inu is an Ethereum-based ERC-20 token, subsequently, it is delivered on and facilitated by the Ethereum blockchain rather than its own. As indicated by Ryoshi's paper, he picked Ethereum to foster the Shiba Inu biological system since it was at that point protected and grounded, and it permitted the task to stay decentralized.

The Shiba Inu Ecosystem

The Shiba Inu ecosystem is made up of three tokens:

1. Shiba Inu (SHIB): This is the primary currency of the initiative. Starting with a supply of one quadrillion (1,000 trillion), Ryoshi locked half of it in Uniswap (for liquidity) and gave the other half to Ethereum co-founder Vitalik Buterin for safety. Buterin contributed more than 50 trillion Shiba Inu coins, worth more than $1 billion at the time, to a COVID-19 relief fund in India in May 2021, when the country was reeling from the Delta version of the coronavirus. Buterin then, at that point "consumed" — or forever pulled out from flow — 40% of Shiba Inu's whole stock to an alleged dead wallet.
2. Leash (LEASH): The 2nd token in the Shiba Inu ecosystem, In contrast to the trillions of Shiba Inu tokens, Leash, the token at the right end of the spectrum, has a supply of just 107,646 tokens.
3. Bone (BONE): With a total quantity of 250,000,000 tokens, Bone falls in the middle of the other two tokens in terms of circulation supply. It is intended to serve as a governance token, allowing the SHIBArmy to vote on forthcoming proposals.

Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE) are the three tokens that comprise the Shiba Inu ecosystem (BONE)

The Shiba Inu Ecosystem also includes the following species:

• ShibaSwap: ShibaSwap's goal is to create a safe environment for cryptocurrency trading while being decentralized. ShibaSwap is the best site for buying and selling SHIB and LEASH.
• Shiba Inu Incubator: The incubator's goal is to look beyond popular creative mediums like painting, photography, and computer rendering to find methods to celebrate creativity and inventiveness.
• Shiboshis: Shiboshis are non-fungible tokens (NFTs) created by Shiba Inus and inscribed on the Ethereum blockchain, each with unique and collectible qualities.

Canine terms

In line with the dog concept, the aforementioned Shiba Inu woof paper used canine terminology to illustrate how returns on Shiba Inu tokens might be created. These tokens may be used to "dig" (offer liquidity), "bury" (stake tokens), and even "fetch" on ShibaSwap (exchange one token for another). According to the woof paper, tokens employed in these tactics create "Woof" returns in the form of Bone tokens, which are dispersed to token pools known as "Puppy Pools." Part of the attractiveness of meme coins for cryptocurrency aficionados is that they reject standard procedures, and this unusual approach may extend to the usage of canine terminology to define return schemes. However, they appear to be a world away from stodgy investment phrases like return on investment and liquidity.

How to Purchase a Shiba Inu

The following procedures are outlined in the ShibaToken.com Quick Start Guide for a potential purchase of SHIB or LEASH tokens:

1.  Set up a MetaMask wallet.
2.  Send Ethereum (ETG) to your wallet by purchasing it directly or transferring it through exchanges such as Coinbase. When transferring Ethereum, use the ERC-20 network.
3.  Register your MetaMask wallet with ShibaSwap.
4.  Exchange ETG tokens for SHIB, LEASH, or BONE tokens.

Considerations for Shiba Inu Investing

Investing in cryptocurrencies is already dangerous due to their extreme volatility and lack of regulation. Investing in the altcoin/meme coin area poses an extra barrier due to a lack of distinction and the fact that the majority of their value is dependent on frantic trading by their ardent fans. Here are some Shiba Inu investment considerations for a potential investor.

Low cost: Even with its recent advances, Shiba Inu (SHIB) costs a fraction of a penny, therefore a few hundred dollars can buy millions of SHIP tokens. At the current price of $0.00006485 (as of October 31, 2021), $100 will get you more than 1.5 million SHIB tokens.

Though its supporters may point out that Shiba Inu-based NFTs are now available, and its Ethereum base may enable smart-contracting capabilities in the future, Shiba Inu currently has very limited utility and no compelling use case.

Shiba Inu's market value of $35 billion makes it greater than many S&P 500 firms that have been in operation for decades and have increased revenues and earnings for the majority of that period. In fact, the combined $79 billion worth of Shiba Inu and Dogecoin (as of Oct. 28, 2021) was greater than the market capitalization of 388 S&P 500 firms. 4 On August 1st, SHIB was selling for $0.00000000051 in 2020, but at its current price of $0.00006485 (as of Oct. 31, 2021), it has increased by an astounding 12,715,586 percent! This indicates that a $1 investment in SHIB on August 1, 2020, would be worth $127,156 on October 31, 2021.

That astounding return also suggests that Shiba Inu has exceeded its creator Ryoshi's goal of generating something from nothing. Those increases, however, were most likely driven by a social-media-fueled speculative frenzy as cryptocurrency fans sought the next big thing. If the bubble breaks, retail investors who bought at the top risk being left carrying the bag.

A Shiba Inu Investor Makes a Legendary Investment

Some recent deals have become the stuff of investing mythology, such as George Soros' bet against the British pound in 1991 or John Paulson's short subprime mortgage trade from 2007 to 2009. In terms of pure percentage profits, a supposed deal in Shiba Inu by an anonymous trader outperforms even the most legendary trades. In August 2020, one dealer reportedly paid $8,000 for around 70 trillion SHIB tokens. That share is now worth $4.5 billion and represents almost 13% of SHIB's entire circulation of 550 trillion. That equates to a 5.6 million percent return in percentage terms.

Why Is the Shiba Inu Known as the Dogecoin Killer?

According to Shiba Inu founder Ryoshi, SHIB has acquired the moniker "Dogecoin killer" because its value is "primed and ready to eclipse the value of Dogecoin." Ryoshi adds that even if SHIB never reaches $0.01, its publicity and utility will make it worth proportionally more than Dogecoin.

What was the significance of Shiba Inu in the news in October 2021?

For a variety of causes. To begin with, SHIB increased more than tenfold in October 2021, putting it in the top ten of all cryptocurrencies. As a result, it piqued the interest of traders and drew considerable media attention. Second, in the first week of October, Tesla creator Elon Musk posted a photo of his new Shiba Inu dog Floki, resulting in a huge retail investment in the meme currency. Furthermore, the debut of Shiba Inu NFTs, as well as unverified claims that SHIB might be listed on renowned stock and crypto trading app Robinhood, piqued the interest of crypto investors.

Is Shiba Inu a Dangerous Investment?

Shiba Inu is a high-risk, speculative investment. Cryptocurrencies may be highly volatile, and SHIB's recent increases may put it at risk of a major drop. Shiba Inu has relatively limited function, and its value is dependent mostly on a speculative frenzy generated by social media.

Why Did Shiba Inu Cryptocurrency Suddenly Gain Popularity?

Elon Musk, the billionaire entrepreneur, backed Dogecoin earlier this year, a meme coin that was founded as a joke on the advent of Bitcoin in 2013. The backing catapulted the once-obscure cryptocurrency into the mainstream, and it went on to have one of its finest runs in history. This surge fueled interest in another coin based on the same Japanese breed dog meme that Dogecoin had previously taken. Shiba Inu was the name given to this coin. Shiba Inu's designers have dubbed it the "Dogecoin killer." All of these reasons combined to more than tenfold Shiba Inu's value in October, making it a market valuation more than even its primary rival Dogecoin. The currency has made it into the top ten cryptocurrencies by market capitalization, ahead of Dogecoin.

While both Shiba Inu and Dogecoin have lost ground since then, Shiba Inu has fallen more precipitously. Within a week, its market value fell from $40 billion to $30 billion. According to CoinMarketCap, the value of Dogecoin has dropped from $37 billion to $34 billion. As a result, Dogecoin has pushed Shiba Inu off the list of the top ten cryptocurrencies.

However, investing in bitcoin is dangerous, and profit is never guaranteed. The market is extremely unpredictable, and even a tweet from a person with a significant social media following, such as Musk, may have a massive impact on the market.