What is Shiba Inu?
What is Shiba Inu?
Shiba Inu coin is an Ethereum based ERC-20 coin that has been designed to be an alternative to Dogecoin. Unlike Dogecoin which has its own network, Shiba Inu is built upon Ethereum. This allows the creation of decentralized applications (DApps) such as Shiba Swap.
Shiba Inu is a memecoin that is inspired by the Japanese breed of dog by the same name. It is the same dog that inspired the creation of Dogecoin in 2013. Shiba Inu, however, has far more serious goals than most memecoins, which is probably why they claim to be the “Dogekiller”.
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The advantage that Shiba Inu has which Dogecoin lacks is that it is built upon the Ethereum network. This not only allows the creation of DApps but also provides numerous benefits such as compatibility with Ethereum wallets like Coinbase Wallet and Metamask. Similarly, as it is an ERC-20 token, therefore it is also available on decentralized exchanges such as Uniswap, etc.
There is also the potential of SHIB being integrated into the various ETH-based DeFi projects, and NFT marketplaces.
Who Created Shiba Inu?
#SHIB thank you NY pic.twitter.com/ZmC90aAAm2
— Shiba Inu Army (@ShibaInuToken8) November 6, 2021
Shiba Inu was created in August 2020 by an anonymous group or individual known simply as Ryoshi. According to Ryoshi, Shiba Inu is an experiment in “decentralized spontaneous community building.” The guiding principles of Shiba Inu, are defined in its white paper, which is aptly known as “Woof Paper.”
The basic and founding principle of the platform was to start from zero, with zero, and with a spirit to create something special out of nothing. A whole community of over 500,000 members, referred to as The ShibArmy, keep the platform active. Additionally, Ryoshi also chose to build the platform on Ethereum instead of making its own blockchain network. The reason given for this is that Ethereum is already a secure and well-established network, and it would allow Shiba Inu to stay decentralized.
How It Works?
Unlike traditional meme coins which have little to no utility, Shiba Inu aims to become a practically viable project that has several use-cases. It has been nicknamed “Dogekiller” precisely because of the fact that while it may not overtake the price of DOGE, it could still be worth a lot more, because of the utility that it provides.
Unlike Dogecoin which is used primarily as a peer-to-peer money transfer system, or to tip your favorite content creators, Shiba Inu has multiple functionalities, and there is still a lot in the pipeline.
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What enables Shiba Inu to have multiple functionalities is the fact that it is built upon the Ethereum network. This allows the creation of smart contracts, NFT platforms, and even governance systems, which in the case of Shiba Inu will be a DAO-based system called DoggyDAO.
Shiba Swap
The poster child of the project known as ShibaSwap launched earlier this year. ShibaSwap is a DeFi platform that facilitates the decentralized trading of cryptocurrencies. In addition to trade, there are also numerous functionalities of ShibaSwap. The six main functions of ShibaSwap incorporate three different coins, all of which are native coins of the platform. These include SHIB, BONE, and LEASH.
The first important function of ShibaSwap is known as ‘Dig.’ Digging involves the users depositing their tokens to the liquidity pools of the platform. The users receive ShibaSwap liquidity lool (SSLP) tokens in return. These tokens entitle the users to a reward that can be redeemed in the form of BONE tokens. The functionality associated with redeeming SSLP tokens for BONE is known as ‘Woofing.’ There is also the functionality of trading NFTs within the platform. Users can trade up to 10,000 unique NFTs that are known as ‘Shiboshis.’ These are basically pixelated images of Shiba Inu Dog cartoons, and are quite similar in style to the famous CryptoPunks. Each NFT character has its own unique traits.
Another feature of the ShibaSwap platform is the ability to stake and earn high-interest yields. This functionality is known as ‘Bury’, and it involves the staking of SHIB, LEASH, and BONE. Once a user stakes their tokens, they receive a token that represents their total amount staked. This token can be redeemed to gain interest yields in the form of BONE tokens. 33% of the staking rewards are immediately available to the user, while 66% of the rewards are locked up for a period of 6 months. The analytics dashboard of the platform, from where the user can track their interest yields, and explore the current interest rates is known as Bonefolio.
What is SHIB?
SHIB is the foundational currency of the platform. The total supply of SHIB at the time of its inception was 1 quadrillion, which equals to around 1000 trillion. Half of it was locked up in a liquidity pool on the decentralized exchange Uniswap. While the rest of it was sent to Ethereum Co-founder Vitalik Buterin. According to Ryoshi, it was hoped that Vitalik would keep the tokens, however, that was not to be the case as he donated almost $1 billion worth of tokens to the India Covid Relief Fund, and burned the rest by sending it to a dead wallet, effectively taking 40% of the total supply of SHIB out of circulation. As of today, almost 549.1 trillion SHIB are in circulation, and it has a market cap of over $32.2 billion.
Concerns
The primary concern with Shiba Inu is the fact that it’s a meme coin. Even though its utility is meant to be a lot more than that of other meme coins like Dogecoin, but still the issue with a meme coin is that it is highly dependent upon trends and its adoption by the community. Therefore its massive popularity is both its greatest ally and possibly its weakest link as well. Because most of its popularity is down to a social media-driven frenzy, which is sooner or later going to dissipate. Therefore until and unless Shiba Inu proves itself to be a platform that can provide utility and practical use-cases, its future is unclear.
Where To Buy Shiba Inu?
Similarly to how you would buy another cryptocurrency, you can purchase SHIBA on most major exchanges like KuCoin. You can either place a market buy or a limit buy. With a limit buy, you determine the price you are willing to pay, and your order gets filled once the token price reaches your limit price. If you want to get your hands on the token quickly, you can place a market order, where you agree to pay the current price and have your order filled almost immediately. If you are interested in purchasing SHIBA you can do so by visiting KuCoin or Binance.Us or even iTrustCapital.
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