HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

What Is Shiba Inu Coin?


Shiba Inu coin is a “meme coin” that caught the attention of crypto enthusiasts over the last few years. The coin is one of the largest of the “dog coins” and a direct competitor to Dogecoin. Shiba Inu is a retail trader’s favorite and therefore has many fans. Shiba Inu is a decentralized, community-building cryptocurrency that runs within its own ecosystem. The Shiba Inu ecosystem is built on the Ethereum network, allowing the coin to interact with and handle smart contracts.

The Shiba Inu coin was originally an experiment to make microtransactions and fight rival Dogecoin. However, the coin tends to be very volatile, as a lot of its “hype” is about the community around it, which can wane sometimes.

What is Shiba Inu Coin?

Shiba Inu coin is a cryptocurrency built on top of the Ethereum network and works within its own ecosystem. By being built on Ethereum, it can work with smart contracts, unlike Dogecoin, its biggest competitor. The coin is driven by its potential to utilize smart contracts but, more than anything else, social media hype. Because of this and the small price of each coin, volatility is the main feature for traders.

In August 2020, an anonymous person calling himself “Ryoshi” created the Shiba Inu coin. The creator has remained unknown since, much like the creator of Bitcoin, Satoshi Nakamoto. The reality is that Ryoshi could be a handful of people anywhere in the world.

It was created as an altcoin of Dogecoin, an altcoin of Bitcoin. It was named after the wildly popular Japanese dog breed, Shiba Inu. The coin is popular on multiple exchanges and is followed by many people on places like Reddit, Twitter, and Instagram. Much like Bitcoin, the founder of Shiba Inu is anonymous. The creator goes by the pseudonym “Ryoshi” and has a blog called “Ryoshi Research.” He has described himself as “just some guy of no consequence tapping at a keyboard.”

He claims that he owns none of the coins to keep himself unbiased and pure, claiming to get satisfaction from Shiba Inu in “other ways.” The team that created Shiba Inu has listed in the Shiba Inu “WoofPaper” (White Paper) that they made Shiba Inu for three main reasons, including:

How Does Shiba Inu Coin Work?

Shiba Inu is an ecosystem that has been launched on the Ethereum network. Shiba Inu has the same consensus mechanism as Ethereum, which initially was proof-of-work but has since migrated to proof-of-stake.Moving to proof-of-stake means that you can receive mining rewards based on how much of the coins you stake.

Shiba Inu tokens, abbreviated as SHIB, are ERC-20 tokens in the Ethereum network, making them fungible tokens, as each has an identical value.

There’s an extraordinarily high supply of Shiba Inu coins. The total supply is one quadrillion, so even though the supply is limited, it is still far too large to be deflationary. As of 2022, there is roughly 425 trillion circulating SHIB. Half of the total supply available of SHIB is locked on Uniswap. The other 50% was sent to a crypto address belonging to Vitalik Buterin, the co-founder of Ethereum.

Shiba Inu has recently opened its DEX, or decentralized exchange. This was named ShibaSwap and allowed the user to swap SHIB tokens for others. This exchange is made to be the most decentralized and secure one in the world. (Shiba Inu’s words.)

The DEX will allow SHIB holders to earn interest using terms like DIG, BURY, FETCH, TREAT, and BONEFOLIO. By “digging” SHIB tokens, you provide liquidity to the SHIB pool and earn BONE tokens. BONE tokens are to be limited to 250 million and allow the holder to vote on system changes, etc.

LEASH is an even more coveted token, as there are only 107,647. The token is an ERC-20 token that is meant to be a “Doge Killer.” LEASH came within a few whiskers of $8900 on May 11, 2021. Traders can buy LEASH on Uniswap.

The Shiba Inu Ecosystem

The Shiba Inu ecosystem consists of three tokens, Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE). It also consists of ShibaSwap and Shiba Inu Incubator.

The three tokens are described as follows:

Other parts of the Shiba Inu Ecosystem include:

How Many SHIBA INU (SHIB) Coins Are There in Circulation?

The Shiba Inu website states that 50% of the total SHIB token supply has been locked on Uniswap, with the “keys thrown away.” The remaining 50% was sent to Vitalik Buterin, the co-founder of Ethereum, for safekeeping. He sent $1 billion worth of Shiba Inu at the time to India’s Covid Crypto Relief Fund. He then burned 40% of the total supply to a dead wallet.

LEASH has a limited supply, with only 107,646 tokens available, offering rewards to liquidity providers, while BONE has 250 million tokens and is coined “the Dogecoin Killer.” BONE is a governance token, allowing holders to vote on Shiba Inu’s Doggy decentralized autonomous organization.

Dog-themed meme tokens took off in May 2021, as transaction volumes were hundreds of millions of dollars. However, since then, these types of assets have been cooling off.

What is the Difference Between Shiba Inu Coin and Dogecoin?

When investing or trading Shina Inu, you will inevitably hear a lot of back and forth between those who support Shiba Inu and Dogecoin. Because of this, you need to understand the difference between the two coins.

Shiba Inu Dogecoin
Use case Still trying to find it, as most of the dynamic to price is based upon hype. However, there is a DEX now, called ShibaSwap. DOGE has shown itself to be a medium of financial transaction, albeit in limited amounts.
Development Built on the Ethereum network. Built on Bitcoin technology.
Coins available 394 million 130 billion

What Are the Advantages of Shiba Inu (SHIB)?

Shiba Inu is a wildly popular coin, so it is important to understand some of its advantages. While somewhat of a subjective list, some of the most important advantages include:

What Are the Disadvantages of Shiba Inu (SHIB)?

While Shiba Inu is loved by many, it isn’t perfect. It is essential to know the disadvantages of Shiba Inu if you invest in it or trade it.

Meme coin: Shiba Inu is a “meme coin.” In other words, it started as an experiment or a joke. However, it has since caught the attention of traders around the world. Shiba Inu now has its own DEX, suggesting that it is trying to be something else.
Not an independent blockchain: Although unlikely, there is always the concern that the Shiba Inu ecosystem isn’t independent, and something could happen with Ethereum. Because of this, you also need to pay attention to the news with the Ethereum network.
Massive competition: SHIB has a lot of competition. There are seemingly endless transactional coins out there, and SHIB will have to find a way to stand out from the crowd.

Is Shiba Inu a Good Investment?

As an investment, Shiba Inu is something that you will have to pay close attention to. After all, most of the bull cases for this coin are pure hype. Hype is something that can come and go rather rapidly, so this isn’t something that you will be buying and forgetting about for a long time. The fluctuations can be wild, so you should think more about Shiba Inu as a trading instrument.

The coin has been known to jump wildly just because someone like Elon Musk tweets about it. While it’s a good thing for the coin that someone well-known is paying attention to it, the reality is that unless they do something with the ecosystem, it’s a short-term boost at best. However, this doesn’t mean that you cannot trade it successfully. Therefore, trading it at PrimeXBT makes sense because you can trade coins via CFD markets, meaning you can buy or short them without taking the usual steps. You only worry about price and can get in or out quickly.

There have been a lot of “milestones” for SHIB, one of which is when big exchanges started to list the market. However, this still does nothing for adoption, and with the crypto markets being flooded with new coins, Shiba Inu will continue to be one of the coins in a vast sea of them.

Conclusion

Shiba Inu has a somewhat uncertain future. While it has already defied all odds by becoming popular, it has yet to take off in a use-case scenario. The fact that the coin relies so much on hype as a price driver is somewhat concerning.

However, it is worth pointing out that SHIB can work with smart contracts, and there is a DEX in the ecosystem. This means that the coin and ecosystem can do almost everything that the Ethereum network can do. Because of this, it’s always possible that the ecosystem gets a “Killer app” that people will like. Most smaller cryptocurrencies seek that “must-use app” to gain mainstream adoption.

Just because Shiba Inu started as a meme coin, it DOES have the possibility to become something much more serious. However, SHIB is a speculative asset and should be treated as such. If you choose to own it, SHIB should be part of a well-diversified portfolio.

#source


RELATED

Nasdaq CFD Trading: Everything You Need To know

The Nasdaq composite index is one of the three most important and popular major stock indices traded on the United States stock market. These three crucial indices...

What Is the S&P 500 and how to trade it?

The Standard & Poor's 500 Index, known by its shorthand as the S&P 500, is arguably the most important stock index in the world. It's made up of 500 companies, including many of the largest...

A Comprehensive Guide to Trading in Volatile Markets

Trading in volatile markets can be a challenging yet rewarding endeavor. To navigate these turbulent waters successfully, it's crucial to understand the dynamics at play, and one of the key tools for doing so is the VIX...

Investing vs trading cryptocurrency: What's right for you?

People often mistake investing and trading for the same thing. However, they are very different and each has its own characteristics when it comes to crypto...

Some things you need to know about investing in cryptocurrency

Whether you have thought about investing in cryptocurrency for a long time or it is an idea that sprang up recently, there are some things you should know before getting started...

Is It The End Of The Cryptocurrency Bull Run?

A recent selloff across the cryptocurrency market has turned greed to fear, and in a flash nearly a trillion in value was wiped out from the market cap of cryptocurrencies...

FXOpen Forex Partnership Program

We offer our Forex partnership program to traders, Forex brokers, and website owners who publish information about fiat and crypto-currency trading...

Investment Time Horizon: Definition And Its Role In Investing

Beginning investors who come to the stock market are inevitably confronted with terminology that is new to them. An accurate understanding of this vocabulary makes it possible...

What Is Cosmos Crypto?

Scalability and interoperability have been two significant problems for the blockchain world. There are a handful of options for interoperable blockchain networks...

Trading in a Kimono or What Nikkei 225 Is

CFD trading in the stock market offers excellent opportunities for making money online. Moreover, unlike investors, a trader can make a profit not...

Dash Coin: Overview and Main Features

At one point, investments in Dash were highly profitable. Many traders received significant gains from the Dash cryptocurrency when the price action surpassed a $1,500...

What is Bond Market

The bond market, also called the debt market or credit market, is an online marketplace where people trade bonds. These bonds can be issued by governments...

Trading opportunities during the football world championship

The world football championship is fast approaching. Fans around the world are already thinking about how to best spend their time during this event, and soon...

Applying VSA in Forex Trading: Everything You Need to Know

Tick volumes are one of the simplest options for VSA analysis Most forex traders are familiar with technical and fundamental analysis. There are several ways to use these two methods...

What is staking and how does it work?

When it comes to earning with cryptocurrencies, investors usually consider buying prospective assets or mining them. However, there is an alternative...

Different ways of investing in gold in these modern times

Gold is a bright, yellow, malleable and ductile metal found in nature. It is usually found in rock veins, gold nuggets, grains, electrum or alluvial gold...

Which Citizenship by Investment Programs are Crypto-Friendly?

With the evolution of the digital era, the crypto industry has taken the world by storm. In most countries, digital assets are considered a commodity rather than currency...

Benefits of Becoming a Signal Provider for Copy Trading

As a trader, you may be asking yourself if becoming a signal provider is right for you. Many new traders turn to copy trading as a way to learn from more...

Taking Advantage on A Bearish Market

Shorting a stock has been popular and widely accepted investment strategy in past years. It had become increasingly globally known when...

The Guide to cryptocurrencies

Several years ago, say eight or nine, it would have been easy to write a short cryptocurrency list, because following Bitcoin's release in 2009, digital currencies...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.