Billionaire entrepreneur Elon Musk endorsed Dogecoin earlier in 2021. It was a meme-based cryptocurrency designed as a joke in response to the rise of Bitcoin in 2013. The backing catapulted crypto into the mainstream and it went on to have one of its most successful runs ever. This surge sparked interest in a new coin, based on the same Japanese dog meme that Dogecoin had previously taken. The coin is known as Shiba Inu
The meme token has attracted a lot of attention despite its modest price of less than one cent. Shiba Inu is rated No. 14 amongst the biggest cryptocurrencies with a market capitalization of $17.31 Billion, according to Coinranking.com. Though this asset is inexpensive to purchase and it may be tempting to rush in, experts advise investors to do their homework first.
Shiba Inu is an altcoin, which refers to all cryptocurrencies other than bitcoin. In general, crypto is a risky and speculative investment, but experts claim altcoins are even worse.
Here’s all the information you need to know about Shiba Inu! (This is not financial advice)
What is SHIBA INU Coin?
Shiba Inu is an ethereum-based equivalent of Dogecoin, a joke token favoured by Elon Musk and Mark Cuban. It started out as the “dogecoin killer” cryptocurrency and uses the Shiba Inu dog breed as its mascot.
According to the token’s white paper, it was created in August 2020 by Ryoshi, whose purpose was to move away from societal structures and traditional beliefs. Shiba Inu sought to be an experiment in decentralized spontaneous community development and to return control to the ordinary person. Experts warn, however, that the simplicity with which a project can be started on the Ethereum blockchain means that underdeveloped coins can be put into circulation at little to no cost to the developer.
Who Owns Majority of the Shiba Inu Supply?
The total supply of Shiba Inu is estimated to be one quadrillion. Ryoshi does not own any coins, and half of the total supply is stored in a liquidity pool on Uniswap, a decentralized exchange.
The rest was sent to Vitalik Buterin, Ethereum’s co-founder. Ryoshi sent Buterin tokens in the hope that he would keep them but Buterin did not. He destroyed the majority of them, thereby removing them from circulation, and donated a large sum to charities.
Is it Safe To Invest in Shiba Inu?
Altcoins may necessitate extra caution due to their variations from Bitcoin in terms of structure, supply, and utility. Bitcoin was founded in 2009 with the intention of operating as a peer-to-peer electronic cash system. Its blockchain was rigorously developed, with an ecosystem that was carefully examined. Bitcoin also has a finite supply, implying that it is inherently scarce. The bulk of altcoins lack these characteristics.
Supporters say that the Shiba Inu ecosystem includes smart contract capabilities, non-fungible tokens, and liquidity mining options which provide value outside the community. Many altcoins can be exceedingly dangerous and may not have any intrinsic investment value. Investors should not trade these assets without proper research and due diligence. Always look for crypto assets with utility rather than investing in a booming coin based on hype.
If you think $0.170 for Dogecoin is a steal-deal, wait until you hear how much a SHIB costs. The coin is now trading at $0.00002958. That means, holding 1 million Shib coins will only cost $31.29. However, the nominal price isn’t the best indicator of a crypto’s appeal. Instead, it’s the asset’s future use-cases as well as the promise it holds. It also helps to have a supportive community behind you.
Does it Have any Real Use?
It wasn’t developed with a complicated use-case like borrowing, lending, trading, or gaming in mind, but it is slowly moving towards real-world utility cases.
Due to the fact that Shiba Inu is designed on the Ethereum blockchain, It has many advanced smart-contracting capabilities. Shibaswap, for example, is a platform with the goal of providing token usefulness in terms of staking and payouts.
How did Shiba Inu Become so Famous?
Shiba Inu was relatively unknown until Musk sent cryptic tweets about the Shiba Inu puppy. Investors assumed he was shifting support based on those tweets. In addition, a petition advocating for the Shib coin to be listed on the Robinhood trading platform received a lot of signatures. It just produced a set of “shiboshis,” which are non-fungible tokens. These factors combined to boost this coin’s value, putting it on par with its rival Dogecoin in terms of market capitalization
When Ethereum Cofounder Vitalik Buterin donated 50 trillion ($1 billion) to a crypto-based COVID-19 relief fund for India, the coin garnered headlines. Apart from that, it’s simply the Shib Army rallying around the coin. The company behind altcoin avalanche, the crypto ecosystem is replete with coins that reflect varied use-cases and themes. Meme tokens are driven by culture and indicate an underlying theme or movement, rather than unique technological use cases.
Shiba Inu Outperformed Bitcoin in 2021
Only a few crypto assets have the ability to outperform Bitcoin in any segment. Shiba Inu, on the other hand, was able to achieve the unachievable. With 43 million more views than Bitcoin in 2021 on CoinMarketCap, Shiba Inu was the most popular cryptocurrency.
Shib also became the alpha among dog-themed cryptos. With Shiba Inu’s year of 2021, we could go on and on about the technical and specific characteristics of this coin. Keeping in mind that the Shiba Inu is a new breed of meme-coin, we recommend conducting extensive research before investing in this asset.
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PS: This article is not financial advice. SHIB is still a volatile crypto coin that necessitates an understanding of meme currencies, risk analysis, and other indicators in order to invest.