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What Exactly Is A Shiba Inu?

Shiba Inu is a Japanese dog breed (SHIB)

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 commonly regarded as a Dogecoin alternative; in fact, its proponents refer to it as “the Dogecoin killer.”

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

Shiba Inu’s value more than tenfolded in October 2021, giving it a market capitalization of $35 billion (as of October 31, 2021) and placing it tenth among all cryptocurrencies by this metric.

The joke coin’s price increase was sparked by a tweet by Tesla CEO Elon Musk on Oct. 4, 2021, displaying a picture of his new Shiba Inu puppy Floki. Musk’s cryptic tweets often result in increased volatility in the cryptocurrency market because he is one of the most high-profile proponents of Dogecoin and the self-proclaimed “Dogefather.”

Shiba Inu’s price spike in October 2021 nearly caught up to Dogecoin’s market value of $36.9 billion (as of Oct. 31, 2021), after temporarily topping it. It remains to be seen whether Shiba Inu will fulfill the expectations of its expanding network of supporters, known as the SHIBArmy, of becoming “the Dogecoin killer.” But, at least in October 2021, Shiba Inu, a previously unknown cryptocurrency, became the Dog’s tail as its price skyrocketed (ecoin).

Shiba Inu are a type of Shiba Inu dog.

The Shiba Inu ecosystem’s guiding principles are written out in a “woof document” (probably a play on white paper), which can be found on the website.

Shiba Inu was created in response to a simple question, according to the paper: “What would happen if a cryptocurrency project was managed entirely by its community?” It began as a “experiment in decentralized spontaneous community development,” according to its founder Ryoshi. Ryoshi believes that the strength of collective decentralization may generate something far more powerful than a centralized team could ever achieve.

The SHIBArmy’s nearly 500,000 members believe in its fundamental ideals, which are as follows:

The project began with zero, in the spirit of making something from nothing; it was not created on the basis of an existing community or pre-assembled team; and it was founded on the basis of a declared love of Shiba Inu dogs.
Shiba Inu is an Ethereum-based ERC-20 token, which means it is created and hosted on the Ethereum blockchain rather than its own. According to Ryoshi, he picked Ethereum to develop the Shiba Inu ecosystem because it was already secure and well-established, as well as because it allowed the project to remain decentralized.

The Ecosystem of the Shiba Inu

The Shiba Inu ecosystem is made up of three different tokens:

The Shiba Inu (SHIB) is the project’s primary currency. Starting with a supply of one quadrillion (1,000 trillion), Ryoshi put half of it in Uniswap (for liquidity) and the other half in Ethereum co-founder Vitalik Buterin’s hands for protection. When India was hit by the Delta version of the coronavirus in May 2021, Buterin contributed more than 50 trillion Shiba Inu coins, valued at over $1 billion at the time, to a COVID-19 relief fund in India. Buterin also “burned” — or permanently removed from circulation — 40% of Shiba Inu’s entire supply to a “dead wallet” shortly after.
(LEASH): (LEASH): (LEASH): (LEASH): ( The Shiba Inu ecosystem’s second token, Leash, represents the opposite end of the spectrum, with a total supply of only 107,646 tokens compared to the billions of Shiba Inu tokens.
BONE (BONE) is a type of bone. With a total number of 250,000,000 tokens, Bone falls in between the other two tokens in terms of circulation supply. It is intended to serve as a governance token, allowing the SHIBArmy to vote on upcoming proposals.
Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE) are the three tokens that make up the Shiba Inu ecosystem (BONE)

The Shiba Inu Ecosystem also includes the following species:

ShibaSwap: ShibaSwap is a DeFi platform that aims to create a secure environment for cryptocurrency trading while remaining decentralized. ShibaSwap is the greatest place to buy and sell SHIB and LEASH.

Shiba Inu Incubator: The incubator attempts to find ways to reward creativity and inventiveness beyond popular art genres such as painting, photography, and computer rendering.

Shiboshis: Shiboshis are non-fungible tokens (NFTs) created by the Shiba Inu and published on the Ethereum blockchain. Each Shiboshi has different characteristics that make it unique and collectible.

Canine lingo

The aforementioned Shiba Inu woof paper, in keeping with the dog motif, employs canine words to illustrate how returns might be generated from Shiba Inu tokens. These tokens can be used to “dig” (give liquidity), “bury” (stake tokens), and even “retrieve” things 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 disregard traditional protocols, and this unconventional approach could extend to the usage of canine terminology to define return schemes. However, they appear to be a far distance from traditional investment words like return on investment and liquidity.

How to Purchase a Shiba Inu

The following steps for a potential purchase of SHIB or LEASH tokens are detailed in the Quick Start Guide:

Make a wallet with MetaMask.

Send Ethereum (ETG) to your wallet by purchasing it directly or transferring it through an exchange like Coinbase. Ethereum is transferred using the ERC-20 network.
ShibaSwap can be connected to your MetaMask wallet.

Change your ETG tokens for SHIB, LEASH, or BONE tokens.

Considerations for Investing in Shiba Inus

Because of their tremendous volatility and lack of regulation, investing in cryptocurrencies is already risky. Because of the lack of uniqueness and the fact that the majority of their value is based on frantic trading by their obsessive supporters, investing in the altcoin/meme coin area provides an additional challenge. Here are some things to think about if you’re thinking about investing in Shiba Inu.

Low price: Even after its recent advances, Shiba Inu (SHIB) costs a fraction of a cent, meaning that a few hundred dollars can buy millions of SHIB tokens. $100 will get you over 1.5 million SHIB tokens at the current price of $0.00006485 (as of Oct. 31, 2021).

Shiba Inu currently has extremely low usefulness and no convincing use case, despite the fact that Shiba Inu-based NFTs are now accessible and its Ethereum base may provide smart-contracting capabilities in the future.

Shiba Inu’s market valuation of $35 billion puts it in the same league as many S&P 500 firms that have been around for decades and have grown revenues and profits for the majority of that time. In fact, the combined value of Shiba Inu and Dogecoin (as of Oct. 28, 2021) was greater than the market capitalization of 388 S&P 500 firms. 4 SHIB was trading at $0.00000000051 on August 1, 2020, therefore its current price of $0.00006485 (as of Oct. 31, 2021) is a massive gain of 12,715,586 percent! This means that a $1 investment in SHIB on August 1, 2020 would have grown to $127,156 by October 31, 2021.

Shiba Inu has achieved its creator Ryoshi’s goal of generating something from nothing in spades, thanks to that eye-popping return. However, those gains could have been propelled by speculative fervor spurred by social media as cryptocurrency fans search for the next great thing. Retail investors who bought at the top of the market may be left holding the bag if the bubble collapses.

A Legendary Trade by a Shiba Inu Investor

Some recent investments, such as George Soros’ bet against the British pound in 1991 or John Paulson’s short subprime mortgages trade from 2007 to 2009, have become the stuff of investing legend. Even those famous trades pale in comparison to an alleged Shiba Inu trade by an unnamed trader in terms of massive percentage gains. In August 2020, this dealer reportedly paid $8,000 for around 70 trillion SHIB tokens. That share is now worth $4.5 billion and amounts for nearly 13% of SHIB’s total circulation of 550 trillion. That’s a 5.6 million percent return in percentage terms.

Why is the Shiba Inu known as the “Dogecoin Killer”?

It was dubbed “the Dogecoin killer” by Shiba Inu founder Ryoshi because the value of SHIB is “primed and ready to overtake the value of Dogecoin.” Even if SHIB never reaches $0.01, Ryoshi believes it will be worth proportionately more than Dogecoin due to its publicity and usability.

In October 2021, why was the Shiba Inu in the news?

There are several causes for this. For starters, in October 2021, SHIB increased by more than tenfold, putting it in the top ten cryptocurrencies. As a result, it sparked a lot of curiosity among traders and received a lot of media coverage. Second, in the first week of October, Tesla creator Elon Musk posted a picture of his new Shiba Inu dog Floki, creating huge retail investment in the meme coin. In addition, the debut of Shiba Inu NFTs, as well as unverified claims that SHIB will be listed on popular stock and crypto trading app Robinhood, enthralled crypto investors.

Is Buying a Shiba Inu a Risky Business?

Yes, Shiba Inu is a high-risk, high-reward investment. Cryptocurrencies are notoriously volatile, and SHIB’s recent advances could put it at risk of a major drop. Shiba Inu has relatively limited function, and its value is dependent primarily on a speculative frenzy generated by social media.

What do you think?

Written by Winston Williams

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