What is Shiba Inu Coin? Does Shiba Coin Have Potential?

Coin Shiba, the meme coin that is said to have turned many investors into millionaires overnight. Sounds fascinating already, doesn’t it? So what exactly is Shiba Coin, what makes it so special that its price skyrocketed, and does Shiba Coin still hold potential today? All of these questions will be answered in today’s article.

1. WHAT IS COIN SHIBA INU?

Coin Shiba Inu, or SHIB coin, is a meme coin introduced to the cryptocurrency market in August 2020. The name Shiba Inu comes from the Shiba dog breed in Japan. However, don’t confuse Shiba Inu coin with Dogecoin, which is also a meme coin with a similar theme.

Shiba Inu Coin is nicknamed the “DOGECOIN Killer.” Like some other cryptocurrencies, the Shiba Inu token operates on the Ethereum blockchain, providing security and functionality for the platform.

1.1. The Foundation Platform of the Shiba Coin Project

The journey of ideating and developing the Shiba meme coin was a quest to answer the question: “What happens when a cryptocurrency project is powered 100% by its community?” Decentralized finance projects built on community participation can be considered a “new frontier,” with relatively few projects fully exploring this potential.

The Shiba Inu ecosystem was created to break away from old traditional financial mindsets and systems. The power comes from the community working together in harmony. Not only is the Shiba Inu token’s price very low, but most meme coins are priced similarly. However, Shiba coin’s price quickly surged as it gained strong support from the investor community.

1.2. The Price History of Shiba Coin

Shiba Inu launched its own decentralized exchange platform called Shiba Swap in July 2021. The Shiba Inu coin started at a price of \$0.000000000119 USD. Just in September 2021 alone, the Shiba coin’s price rose sharply by over 40%. By the end of October—only one month later—the Shiba coin reached its all-time high of \$0.00008845 USD. From its launch to now, do you know how many times Shiba Inu coin’s price has multiplied?

According to data from CoinMarketCap, those who bought Shiba Inu coin early at its launch saw an ROI (Return on Investment) as high as 766,113.29%. However, afterwards, the coin’s value dropped by more than 75%. Despite this, the success of Shiba Inu Coin sparked a “storm” of meme coins. The number of coins considered copies of Shiba Coin has exceeded 100. This has also led to the consequence of more “junk coins” appearing on the market.

2. WHO CREATED THE SHIBA COIN PROJECT?

Shiba Coin was created anonymously under the name “Ryoshi.” Ryoshi declared that their identity is not important, that no one needs to care who Ryoshi is, nor make any effort to find out. Shiba Inu coin has received support from Elon Musk and Vitalik Buterin. Surely no one in the crypto market hasn’t heard of these two names, right?

There have even been rumors that Vitalik Buterin is the mastermind behind and creator of Shiba coin because Ryoshi transferred 50% of the Shiba token supply to the Ethereum co-founder. However, Vitalik denied these rumors in a podcast in mid-2021. Upon receiving the Shiba Inu Coins, he burned 90% of the remaining supply after donating accumulated tokens worth over 50 trillion Shiba Inu to COVID-19 relief funds in India.

Up to now, it is only speculated that Ryoshi could be an individual or a group, and there is absolutely no information about the identity of the Shiba coin project owner today.

3. BASIC INFORMATION OVERVIEW ABOUT SHIBA TOKEN

Similar to other cryptocurrency articles on Tradafx, below are some basic details about Shiba coin that can be easily found on cryptocurrency information platforms:

• Token Name: Shiba Inu
• Symbol: SHIB
• Token Standard: ERC-20
• Shiba Coin Price Today: $0.00001236 USD
• Shiba Coin Market Cap: $6,219,525,057.49 USD
• Shiba Token Contract Address: 0x95ad61b0a150d79219dcf64e1e6cc01f0b64c4ce
• Initial Total Supply: 1 quadrillion Shiba tokens
• Circulating Supply on the Market: 549,063,278,876,302 SHIBA coins

How to add Shiba token to Metamask wallet:

• First, open your Metamask wallet and select the token network. Here it is Ethereum.
• Click on “Import tokens” at the bottom.

• Copy the Shiba token contract address above into the “Token Contract Address” field under the “Custom Token” tab.
• After copying and pasting the Shiba coin address, Metamask will automatically fill in the remaining fields. You just need to click “Add Custom Token” and then “Import Tokens.”

Traders can easily buy Shiba coin because it is listed on Binance and many other major exchanges such as Coinbase, Gate.io, KuCoin, and more.

3.1. What Makes SHIB Coin Different

While most cryptocurrency or decentralized finance projects have a development team, CEO, CTO, or a roadmap, all we know about Shiba coin is the pseudonym Ryoshi. The Shiba Inu website contains no information about the team behind it. Ryoshi has declared that Shiba Inu has no leader, no one is responsible, and Ryoshi does not hold any Shiba Coin tokens. Therefore, there is no favoritism within this network.

Ryoshi’s goal in creating and developing Shiba Inu Coin was to see whether a decentralized finance platform could operate effectively without a central core leadership. Therefore, with the initial total supply, the project was split equally. Specifically:

• 50% of the Shiba coins were transferred to Uniswap to be used as transaction rewards. The private key was also destroyed to ensure a fixed supply, and no one is allowed to withdraw these Shiba tokens.
• 50%, as you may know, was transferred to Ethereum co-founder Vitalik Buterin.

3.2. The Shiba Inu Coin Ecosystem

When you visit the Shiba Inu website, you will easily notice that the Shiba Inu ecosystem does not only include the SHIB coin but also several other tokens supporting its ecosystem activities:

• SHIB: The SHIB coin can be used as a medium of exchange for transactions.
• LEASH: The supply of LEASH tokens is limited to 107,646 tokens, making it the most limited supply token in the Shiba Inu Coin ecosystem.
• BONE: This can be considered a governance token. Users of the Shiba Inu platform use BONE tokens to vote on various proposals within the platform. The total supply of BONE tokens is 250 million. Additionally, liquidity providers can also earn rewards in BONE coins.

Besides the other tokens developed within the network, Shiba Inu has also created several features and aspects such as Shiba Swap — a decentralized exchange platform to trade coins — and Shiboshis — an NFT collection featuring cartoon-style Shiba Inu dogs from the ecosystem. Additionally, a game using these characters is currently under development.

4. WHAT CAUSED THE SHIBA INU COIN PRICE TO RISE SHARPLY?

A decentralized finance cryptocurrency project that does not reveal the identity of its developers or have strong backing organizations — so what factors caused Shiba coin’s price to skyrocket so rapidly?

First, in mid-September 2021, news that Coinbase — the largest crypto exchange based in the US — listed Shiba Coin caused its price to jump over 40% within just two days of the announcement. Then in October of the same year, Shiba Coin’s price surged again amid rumors that it would be listed on Robinhood.

Thanks to this, Shiba Inu Coin became the meme coin with the largest market capitalization. However, to this day, Robinhood has not announced any plans to list the coin. The strong price surge of this meme coin also wouldn’t be possible without tweets from billionaire Elon Musk and Vitalik Buterin on Twitter.

One key reason behind SHIB’s price surge is the relentless effort of the SHIB community to build utility for the Shiba Inu token, alongside the subsequent emergence of the entire Shiba Inu ecosystem. Additionally, some parties began accepting Shiba coin as a payment method. For example, in early December 2021, an electronics retailer in the US integrated Shiba coin via the BitPay platform, allowing payments with Shiba Coin.

5. DOES SHIBA COIN HAVE POTENTIAL?

We cannot deny that although Shiba coin’s price today is no longer at its peak, it has still risen significantly in a very short time. This has even led many to wonder whether Shiba coin is a scam and whether they should buy Shiba coin. If you frequently read articles from tradafx, you probably know that there is no simple yes or no answer to this question.

Instead of focusing solely on the “huge” price increases that can trigger FOMO (fear of missing out), you need to understand the coin you intend to invest in. With cryptocurrencies like Shiba Inu, the coin is not backed by any physical assets nor supported by a steady cash flow. In reality, the only way to make a profit is if someone else is willing to buy Shiba at a higher price than you did.

6. CONCLUSION

Not only Shiba Inu Coin but any coin, especially meme coins, carry significant risks even though their prices may start very low. The crypto market always has the phenomenon of “pump and dump,” so you need to be aware of this in order to develop a sound strategy for entry and exit, minimizing potential losses.

Mentioning risks is not to discourage you from buying Shiba but to help you be aware of potential dangers and better prepare yourself. Hopefully, the knowledge in this article about Shiba Coin will give you a clearer understanding of this meme coin.