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What is Shiba Inu Coin Cryptocurrency and How Does it Work?

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  • Shiba Inu Coin is Also Known as the Dogecoin Killer
  • Shibaswap is the Platform that Supports the Shiba Inu Ecosystem

Shiba Inu Coin is an ERC-20 cryptocurrency whose naming borrows from the Japanese Shiba Inu hunting dog. The Shiba Inu coin launch was in August 2020 on the Ethereum blockchain by an anonymous individual/group Ryoshi. Similar to Dogecoin, Shiba Inu uses the Shiba Inu image as its mascot.

Currently, it ranks among the most popular meme coins. Some people refer to Shiba Inu coin as the ‘Dogecoin killer’. Meme coins are cryptocurrencies that are based on an internet meme or a humorous characteristic.

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Since Dogecoin and Shiba Inu cryptos are associated with the Shiba Inu theme, they are considered meme coins.

The Shiba Inu website describes SHIB as ‘a decentralized meme token that evolved into a vibrant ecosystem.’ You can learn more about other cryptocurrency coins here.

The Basics of Shiba Inu Coin

According to the Shiba Inu’s whitepaper, also known as the ‘WoofPaper’, the meme coin answers the question; ‘What would happen if a cryptocurrency project was 100% run by its community?’

You can access the WoofPaper, which contains the guiding principles of the Shiba Inu ecosystem on the Shiba token website.

The founding principles which the SHIBARMY (supporters of the Shiba Inu cryptocurrency) must embrace are:

  • Shiba Inu started from zero, with zero. This is in line with the spirit of the project; creating something out of nothing.
  • Shiba Inu was not founded from a pre-existing community.
  • Love for Shiba Inu dogs.

Shiba Inu became the first token that is run 100% by its community, thus becoming a decentralized ecosystem. The coin operates without any leadership team.

How to Become a Millionaire Investing in Shiba Inu Coin

Dogecoin Killer

From the Woof Paper, ‘Shiba Inu was dubbed DOGECOIN KILLER’ because the value of SHIB is primed and ready to overtake the value of Dogecoin. Even though SHIB never hits $0.01, between its publicity and utility, SHIB will be worth proportionately more than Dogecoin.’

The coin was able to achieve this goal recently after dislodging Dogecoin in the top cryptocurrencies ranking. This happened during the recent rally that saw SHIB rallying 500% in a week to hit a 35 billion dollars in market valuation.

How Does Shiba Inu Work?

Ryoshi launched the Shiba Inu on the Ethereum blockchain since it was ‘secure and well established and thus allowed for the project to remain decentralized.

Since Shiba Inu exists on the Ethereum blockchain, it is therefore compatible with the entire Ethereum ecosystem.

After the launch, Ryoshi locked 50% of the SHIB tokens in the Uniswap SHIB/ETH liquidity pool. Uniswap enables depositing of crypto assets into liquidity pools where other investors can trade against them.

The remaining 50% were sent to Ethereum co-founder, Vitalik Buterin. However, in May 2021, Vitalik Buterin made a donation worth $1 billion worth of SHIB to the India COVID-19 Relief fund and burnt his remaining 410.24 trillion SHIB tokens to a dead wallet.

This move by Vitalik Buterin to donate the SHIB tokens worth approximately $1 billion at the time, caused a great crash in the price of SHIB.

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The Shiba Inu Ecosystem

The Shiba Inu ecosystem has 3 different tokens;

  1. SHIB- This foundational token shares a similar name with the Shiba Inu ecosystem. It has a maximum supply of 1 quadrillion coins. (A quadrillion is 1 followed by 15 zeros). However, Vitalik Buterin burnt 40% of the coins transferred to him by Ryoshi, thus removing them from circulation. Currently, at least 500 trillion SHIB tokens remains in circulation
  2. LEASH– This is Shiba Inu’s second token, with a circulating supply of 107,646 coins. It was originally set to be a rebase token, tied to Dogecoin’s price. However, the rebase function was eventually turned off. Hence, LEASH continues as a simple ERC-20 token.
  3. BONE– This token has a circulating supply of 250,000,000 coins. It is a governance token that allows the SHIBARMY to vote on upcoming proposals on the Doggy DAO. The Doggy DAO community influences the future of SHIB. This token is only available on ShibaSwap.

ShibaSwap

The team behind the Shiba Inu ecosystem has also created a decentralized exchange known as ShibaSwap. Its goal is to provide a safe place to trade valuable cryptos while remaining decentralized i.e. without the use of an intermediary company.

ShibaSwap gives its users the ability to

  • Dig/Provide liquidity– Users can deposit cryptocurrency assets in pairs to the existing liquidity pools on ShibaSwap or even create their own. The reward for digging is ShibaSwap Liquidity Pool tokens (SSLP). SSLP tokens represent the share of liquidity in the pool and the user receives free bone tokens upon redemption of the pool.
  • Bury/Stake tokens– Users can stake their Shiba Inu tokens to generate high-interest yields. The yields payment is through bone tokens. In return, users are rewarded with tokens representing their staked amount in the form of xSHIB, xLEASH and xBONE depending on the Shiba Inu token on stake.
  • Fetch– Exchange one token for another.

Why Shiba Inu Could Become the Biggest Metaverse Disruptor in the Industry

The tokens used in the above strategies gain woof returns e.g. BONE, through the sophisticated and innovative passive income reward system. The woof returns are distributed to the ‘Puppy Pools’, which are token pools. Certain DIG pools are eligible for double or triple rewards.

33% of the BONE rewards from digging are available for withdrawal at any time, while 67% have 6 months of locking.

However, in the case of burying, 33% of BONE rewards are distributed and can be withdrawn. The remaining 67% have 6 months of locking.

ShibaSwap also allows SHIBARMY access to upcoming NFTs and other tools such as portfolio trackers.

SHIB was the first token to list on ShibaSwap then LEASH.

Shiba Inu Incubator

The Shiba Inu ecosystem also boasts of the Shiba Inu incubator. This was previously known as the Artist incubator. It helps individuals with talent ‘find the tools they need to bring their inspiration and unique perspectives to life.

Shiba Inu Rescue Association

The ecosystem also supports the rescue of Shiba Inu dogs. They use Amazon Smile to collect and donate a percentage of a person’s purchases to the Shiba Inu Rescue Association.

To donate to this cause, use smile.amazon.com when placing orders and select Shiba Inu Rescue Association (a 501(c)3, a preferred non-profit organization.

What Shiba Inu Investors are Planning to do When the Coin Hits $0.01

Shiboshi

Shiboshis are a collection of 10,000 exclusive Shiba Inu generated non-fungible tokens (NFTs). They form part of an upcoming game release by the Shiba Inu team.

The Shiboshi game will allow Shiboshi holders to use their NFTs in strategic gameplay. The 10,000 Shiboshis have unique features that correspond to an attribute in the upcoming Shiboshi game e.g. Laser eyes. The Shiboshi game has 5 attribute categories: Life Force, Evasion, Attack, Luck, and Skill. The unique features determine each Shiboshis ‘Base Level’.

During the minting process of Shiboshis:

  • The first 2,999 Shiboshis required a 0.1 ETH equivalent
  • The next 6,000 Shiboshis required a 0.2 ETH equivalent
  • The last 1,001 Shiboshis required a 0.3 ETH equivalent

Pros of investing in Shiba Inu

  • Low price– SHIB trades at a very low price, thus giving investors a high potential profit margin in the future. Due to its low price, it’s very easy for the SHIB price to double in price, compared to other cryptos like Bitcoin and Ethereum.
  • ERC-20 token– The Shiba Inu ecosystem is powered by the Ethereum blockchain. Since Ethereum announced plans of moving to Proof of Stake from Proof of Work protocol. This move could positively affect Shiba Inu.
  • The innovation of ShibaSwap– The Shiba Inu team came up with ShibaSwap, which is a decentralized finance market. Due to this innovation, SHIB’s prospects are positive compared to other cryptos which do not have their own markets.
  • Skyrocketing prices– Shiba Inu was launched in August 2020 and was trading at $0.00000000051. On October 28th 2021, Shiba Inu hit an all-time high of $0.00008845.

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Risks of investing in Shiba Inu

  • Extremely volatile– Shiba Inu’s price is very volatile in comparison to other altcoins. Volatility could be devastating if moves against your trades.
  • Dependent on the Ethereum blockchain– The Shiba Inu ecosystem hosting is done on the Ethereum blockchain. Hence any negative conditions affecting Ethereum have a consequence on the Shiba Inu ecosystem.
  • Lack of any real-world utility– Unlike some altcoins that solve a real-life situation, Shiba Inu coin is a meme coin. Therefore, the intrinsic value of Shiba Inu is lower than that of other existing coins.

How to buy and sell Shiba Inu Coin Cryptocurrency

One way to buy and sell SHIB and LEASH is through ShibaSwap. However, you can purchase Shiba Inu coin cryptocurrency through the various existing centralized exchanges.

The process for buying Shiba Inu on ShibaSwap is as follows.

  1. Create a MetaMask wallet

MetaMask wallet is a free software cryptocurrency wallet that interacts with the Ethereum blockchain. You can access this wallet via a browser extension or a mobile application.

  • Send ETH to your wallet

You can choose to buy ETH directly on MetaMask or transfer it from crypto exchanges such as Binance and Coinbase. However, when transferring ETH from crypto exchanges, ensure you use the ERC-20 network.

The Most likely Outcomes If You are a Shiba Inu Coin Investor

  • Connect your wallet to ShibaSwap

On ShibaSwap, click on ‘Connect to a wallet’. Select the MetaMask option. This will link your wallet with the ShibaSwap system.

  • Swap your ETH for SHIB, LEASH or BONE.

Once ETH is available on your ShibaSwap account, press ‘Select a token’. Enter the token address or search for it on the tokens list.

This will complete the transaction process.

Key Points to Note on Shiba Inu Coin Cryptocurrency

Shiba Inu Coin cryptocurrency is gaining a lot of market attention due to its rapid growth. Recently, the coin hit the 1 million investors mark.

However, it is key to remember most investors still consider the coin as a meme coin that derives its value from speculation and social media hype.

Therefore, it still remains a risky investment. This is proven by statistics which indicate that the average holding time of Shiba Inu coin cryptocurrency by investors is 11 days.

Short-term holding period by investors indicates a lack of long-term confidence in SHIB. However, the low price of Shiba Inu makes it a favorable investment option especially with the latest venture in NFT and Metaverse markets.

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