Key Takeaways:
- Shiba Inu (SHIB) is a cryptocurrency named after the Shiba Inu dog breed that gained fame as a meme coin.
- Its popularity soared due to its association with Dogecoin and Ethereum founder Vitalik Buterin’s holdings.
- The Shiba Inu coin, SHIB, operates on the Ethereum blockchain with unique tokenomics, including a large supply and burning mechanism to increase scarcity.
- While SHIB is primarily a speculative asset, the Shiba Inu ecosystem has grown to accommodate use cases and utility for the coin.
What Is the Shiba Inu Coin?
The Shiba Inu (SHIB) coin, often referred to as Shiba coin or simply Shiba, is a cryptocurrency that has gained significant attention over the past few years. Named after the Shiba Inu dog breed, which gained fame as the face of the popular Doge meme, Shiba Inu was created in 2020 as an experimental project. It has since grown into a phenomenon in the world of meme coins.
Learn more about meme coins and their role in crypto and Web3 in our comprehensive Research report The Evolution of Memes and What Makes Them Successful.
Who Created Shiba Inu?
In 2020, in effort to continue the series of dog meme coins, an anonymous person or group called Ryoshi created a token named after the Shiba from the famous doge meme. Frequently touted as the ‘Dogecoin killer’ by its followers, the SHIB coin gained popularity in 2021, leading the pack of other canine coins like Floki Inu, Akita Inu, and Dogelon Mars.
Why Is Shiba Inu Popular?
In the range of one year, from August 2020 — when the cryptocurrency was created — until October 2021, SHIB surged to an all-time high of US$0.0000819, an incredible +8,420,000% change.
Upon issuance in 2020, Shiba Inu’s creators had sent 50% of the token supply to Ethereum co-founder Vitalik Buterin, creating hype for the project. This effectively dropped SHIB’s circulating supply by almost half, which some argue may have played a part in making the token more popular.
Another crucial moment in the token’s history was when Buterin sold about 9% of his SHIB holdings, which he donated to help fight the devastating spread of COVID-19 in India.
How Does Shiba Inu Work?
SHIB operates as a decentralised cryptocurrency, leveraging the power and security of the Ethereum network. It is an ERC-20 token, which means it can interact with various decentralised finance (DeFi) projects that share the same blockchain.
As an ERC-20 token, SHIB is not mined like with Proof of Work (PoW) cryptocurrencies, such as Bitcoin, which require mining to validate transactions and create new blocks. Instead, SHIB is based on the Ethereum network, which operates on a Proof of Stake (PoS) consensus mechanism. A supply of 1 quadrillion SHIB tokens were minted when it launched in August 2020, all of which were pre-mined.
Instead of mining, individuals acquire SHIB through trading on decentralised and centralised exchanges, or by participating in the Shiba Inu ecosystem.
A large portion of SHIB’s total supply is held in reserves. Additionally, a percentage of each transaction is burned, further reducing the supply over time. These deflationary measures contribute to the token’s scarcity.
The Shiba Inu Ecosystem and Use Cases
SHIB is part of the wider Shiba Inu ecosystem, which consists of several tokens with different use cases that complement each other. All are inspired by the Shiba Inu dog breed.
Tokens in the Shiba Inu ecosystem include:
- Shiba Inu (SHIB): The main token of the ecosystem, which aims to be an Ethereum-based alternative to Dogecoin (DOGE). SHIB has a total supply of one quadrillion tokens, of which 50% were burned to Vitalik Buterin’s wallet and 50% locked in Uniswap’s liquidity pool.
- Leash (LEASH): Originally designed to be a rebase token pegged to Dogecoin’s price, LEASH was later changed to have a fixed supply of 107,566. It has high volatility and scarcity, making it attractive for some traders.
- Bone (BONE): Serves as the governance token of ShibaSwap, a DEX that allows users to swap and stake tokens, provide liquidity, and earn rewards. BONE has a total supply of 230 million, of which only 3% were minted at launch; the rest are minted through various mechanisms on ShibaSwap.
- ShibaSwap (SHIBASWAP): A DEX that allows users to swap and stake tokens, provide liquidity, and earn rewards, ShibaSwap supports SHIB, LEASH, BONE, and other ERC-20 tokens. It also features an NFT art incubator, called Shiba Art, where artists create and sell their NFT artworks.
The Future of Shiba Inu
As the Shiba Inu ecosystem and community continue to grow, the development team is actively working on improving the token’s functionalities and exploring potential partnerships. As the crypto market evolves and new trends emerge, it will be interesting to see how Shiba Inu adapts and whether it can sustain its current level of popularity.
While the SHIB token has gained significant attention and popularity, it is important to conduct thorough research before committing funds.
Where to Trade SHIB
Shiba Inu (SHIB) is listed in the Crypto.com App, part of the growing list of 250-plus supported cryptocurrencies and stablecoins, including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), USD Coin (USDC), and Cronos (CRO).
Crypto.com App users can now purchase Shiba Inu with USD, EUR, GBP, and 20-plus other fiat currencies and spend it at over 80 million merchants globally using the Crypto.com Visa Card. Alternatively, users can also trade SHIB on the Crypto.com Exchange.
Download the Crypto.com App to start trading SHIB today.
Due Diligence and Do Your Own Research
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.
In addition, the Crypto.com Exchange and the products described herein are distinct from the Crypto.com Main App, and the availability of products and services on the Crypto.com Exchange is subject to jurisdictional limits. Before accessing the Crypto.com Exchange, please ensure that you are not in any geo-restricted jurisdictions.
Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
