While 2021 may be the year of the ox, cryptocurrency has gone to the dogs—and with dramatic moves from May to October, Shiba Inu has become a hot prospect.
Here’s what you need to know about how Shiba Inu works, what makes it so special, and whether you should invest in it.
- SHIBShiba Inu
- Price$ 0.000012
- Marketcap$ 6.38 B
With massive changes in circulation and the release of ShibaSwap keeping Shiba Inu in the news, you may wonder how steady the alleged Dogecoin Killer really is.
But the Shiba team has developments in the works that make it an interesting prospect for new investors.
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What is SHIBA INU (SHIB)?
Shiba Inu coin, also Shiba Inu token or Shib, is an ERC-20 token based on the Ethereum blockchain. That means it uses the Ethereum network of databases for trading and other actions, rather than a network of its own.
As an ERC-20 token, Shiba has interfunctionality with other tokens and services on the Ethereum blockchain. So far, Shiba Inu has lacked concrete uses.
The recent deal with AMC Theatres, which will add Shiba to its list of accepted cryptocurrencies, may promise more real-world applications for the token—but for now, Shiba has the most value on ShibaSwap.
The decentralized trading network ShibaSwap launched in July, providing pools for investors to stake their Shiba Inu and other tokens in. The high returns rates on these liquidity pools make them attractive, but 66% of returns are also time-locked for six months.
Essentially, you have to invest in Shiba for the long haul to make the most profits, and Shiba (currently) runs on hype.
Who Are The Founders of SHIBA INU?
Shiba Inu emerged in August of 2020, conceived as an experiment in decentralized and community-owned cryptocurrency. The anonymous and possibly plural Ryoshi—“fisherman” in Japanese—founded Shiba but maintains a degree of detachment from his creation. He even claims not to own a single coin.
Instead, he places the focus on the community that develops and drives the Shiba project forward. Overtaking Dogecoin serves as both a hype machine and a long-term goal, but the release of ShibaSwap shows that returning value to Shiba’s lively community takes first priority.
How Many SHIBA INU (SHIB) Coins Are in Circulation?
Currently, there are 549,095.51B (~549 trillion) Shiba coins in circulation. Shiba Inu began with 1 quadrillion coins, but lost most to burning—a term for transferring currency to an unlockable wallet.
This guaranteed Shiba’s existence and relative stability on the market by preventing anyone from cashing out the pool and tanking the coin’s value.
Ryoshi then effectively removed the other half of all Shiba coins from the market by gifting them to Vitalik Buterin, one of the founders of Ethereum. In May, Buterin donated 50 trillion of his Shiba tokens to the cause of COVID-19 relief in India, then burned 410 trillion more.
This burn cut the circulating supply of Shiba Inu roughly in half for the second time, but ultimately had little effect on its value. The community continues burning coins to try to improve Shiba’s price, to the tune of hundreds of millions of tokens burned.
Unlike other coins, you can’t mine Shiba directly. Instead, you can use unMineable to mine Ether and have it converted into Shiba Inu. However, unMineable only pays out at a 1,500,000 coin threshold, and at Shiba’s current prices, meaningful profits may take a while.
How is SHIBA INU Network Secured?
Shiba Inu uses the Ethereum network. In the SHIBA INU whitepaper, the founder(s) cite Ethereum’s status as a “secure and well-established” network as their reason for using it to host Shiba, and that security will likely improve over the next year.
Since December of last year, Ethereum has been converting to Ethereum 2.0. Among other changes, this will change Ethereum’s transaction verification process from a Proof of Work model to Proof of Stake.
In short, Proof of Stake removes power from miners by randomly selecting people to validate transactions. This increases the security of the blockchain by decentralizing it even further.
What Makes SHIBA INU Unique?
Shiba allows people to hold up to trillions of tokens, which makes up for the coin’s relatively low value. Otherwise, it didn’t have much going for it beyond pure Doge Killer hype before ShibaSwap launched in July.
Like Uniswap, the Ethereum-based ShibaSwap allows you to trade, stake, and pool your coins in a decentralized marketplace. ShibaSwap also introduced two new Shiba-related tokens: Leash Dogecoin Killer (LEASH) and Bone (BONE).
LEASH (aka Doge Killer), like Shiba, is an ERC-20 token. Formerly tied to the supply of Dogecoin, LEASH now has a limited supply of only 107,647 tokens. That keeps its price significantly higher than Shiba Inu.
Bone bridges Leash and Shiba Inu with a supply of 250,000,000 tokens, and gives owners voting power in future Shiba Inu endeavors in proportion to how many tokens they own.
Lastly, Shiba Inu offers a sense of community. The SHIBArmy subreddit bustles with daily memes and calls to arms, and the Shiba Inu homepage encourages those interested to make purchases with Amazon Smile and donate to the Shiba Inu Rescue Association.
SHIBA INU Alternatives
Should I Invest in SHIBA INU?
Founded by the enigmatic Ryoshi, Shiba Inu banks on its values and its meme status to keep investors hooked. Roughly 500 trillion Shiba coins remain permanently locked in Uniswap, and its status as an ERC-20 token on the Ethereum network makes it safe to buy and trade with.
But should you invest in Shiba Inu?
Yes—with reservations. The AMC deal promises more practical uses for Shiba in the future, but the price depends heavily on unpredictable whales. Shiba’s finally shaping up to be the dog to bet on, but remember that while hype trains may not have brakes, they easily go off the rails.
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I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.