What Is Shiba Inu? How Does It Work? A Comprehensive Guide

What Is Shiba Inu?

Meme coins have been gaining popularity in the cryptocurrency world, and one of the most talked-about coins is the SHIB. Unlike traditional cryptocurrencies, meme coins like SHIB are backed by a strong community rather than real-world utility. This community-driven approach has been a key factor in the success of meme coins, with Elon Musk’s support of Dogecoin being a prime example.

In this article, we will dive into the world of SHIB, explore its purpose and total supply, and compare it to Dogecoin. Additionally, we will provide valuable insights on how to buy SHIB and answer some frequently asked questions about this popular cryptocurrency.

Key Takeaways

  • SHIB coin is a meme coin that is community-driven and does not have real-world utility.
  • Shiba Inu, the creator of SHIB, burned a large portion of the total supply to increase its value.
  • SHIB coin is often compared to Dogecoin, another popular meme coin that gained traction due to Elon Musk’s support.

What Is The History of Shiba Inu?

Born on the Ethereum blockchain, this “Dogecoin killer” launched with a quadrillion tokens, half of which, in a cheeky move, were immediately sent to Ethereum co-founder Vitalik Buterin’s wallet. Buterin, surprised by the generous gift, promptly burned 90% of the tokens, forever altering the course of Shiba Inu’s history1.

Fueled by the charm of the Shiba Inu mascot and the viral power of a dedicated community (“the SHIBArmy”), Shiba Inu experienced wild price swings. In October 2021, a perfect storm of Elon Musk tweets and retail investor FOMO sent the price soaring tenfold in a single week2.

But like a playful pup chasing its tail, Shiba Inu’s ascent was marked by stumbles. A significant portion of tokens remained concentrated in “whale” wallets, raising concerns about market manipulation. Volatility threatened, erasing a hefty 55% of its value by November’s end.

Yet, Shiba Inu refused to roll over. The community rallied, building upon the core token. ShibaSwap, a decentralized exchange3, launched, offering users the ability to swap, yield farm, and stake their SHIB tokens. LEASH and BONE, two additional tokens within the ecosystem, were introduced, each serving unique purposes and further cementing Shiba Inu’s identity beyond a mere price chart.

In August 2023, Shibarium, a Layer-2 scalability solution, emerged, promising faster and cheaper transactions within the Shiba Inu ecosystem4. With its sights set on dApps and DeFi integration, Shibarium aims to transform Shiba Inu from a pure meme play to a more serious DeFi protocol.

Who Are The Key Figures Behind Shiba Inu?

The Shiba Inu token, also known as SHIB, was created in August 2020 by an anonymous person or group known only as Ryoshi5. The token was named after the Shiba Inu dog breed, which is also the mascot of Dogecoin, another popular cryptocurrency with meme origins.

Since its creation, SHIB has gained significant attention and value, becoming a rival to Dogecoin and inspiring the creation of other dog meme cryptocurrencies such as Floki Inu, Akita Inu, and Dogelon Mars.

In just over a year, the value of SHIB has skyrocketed from a low of $0.000000000056 to an all-time high of $0.00008616, representing an incredible 150 million percent increase.

One of the most significant moments in the coin’s history was when Ethereum’s lead engineer and co-founder, Vitalik Buterin, donated $1 billion in SHIB to help fight the spread of COVID-19 in India, making it the largest donation ever given in history.

Overall, the anonymous creator or creators of SHIB, Ryoshi, have made a lasting impact on the world of cryptocurrency with their creation of a token inspired by a popular internet meme.

What Are The Tokenomics and Use Cases of Shiba Inu?

The Shiba Inu cryptocurrency ecosystem is composed of several tokens and tools that work together to create a decentralized financial system.

The Shiba Inu tokenomics depends on the following three tokens:

  • Shiba Inu (SHIB): This is the primary currency in the Shiba Inu ecosystem. It was launched with a total supply of 1 quadrillion tokens and can be exchanged with any of the ERC20 tokens of the Ethereum ecosystem.
  • Leash (LEASH): LEASH is the second token in the Shiba Inu ecosystem and has a total supply of only 107,646 tokens. Initially, it was a rebase token tied to the price of Dogecoin, but the rebase function was later switched off, and the token went back to its ERC20 design.
  • Bone (BONE): BONE is a governance token that is only available on ShibaSwap. It has a total supply of 250,000,000 tokens and is intended to fit between the other two tokens in terms of circulation supply.

The Shiba Inu ecosystem also includes the following tools:

  • ShibaSwap: ShibaSwap is a decentralized exchange (DEX) for decentralized finance (DeFi) that allows users to trade cryptocurrencies without the limits of a centralized platform. ShibaSwap is intended to be a secure place for users to trade cryptocurrencies without having to worry about their funds being stolen or lost. Users can also earn rewards by providing liquidity to the platform.
  • Shiba Inu Incubator: The Shiba Inu Incubator is a platform where talented artists and creators can express their creativity and build their artworks. The platform is intended to be a place where the Shiba Inu community can come together to collaborate and build projects that benefit the ecosystem.
  • Shiboshis: Shiboshis are non-fungible tokens (NFTs) that are generated on the Shiba Inu ecosystem and permanently recorded on the Ethereum blockchain. They are unique and collectible, with different features that make each of them one-of-a-kind. Shiboshis can be purchased and traded on the popular NFT platform OpenSea and ShibaSwap without fees.

How Has Shiba Inu (SHIB) Traded In the Past Year, And What Is The Shiba Inu Price Prediction?

SHIB has struggled to keep up with other popular meme coins like BONK and PEPE over the past 12 months. Data from TradingView6 reveals that SHIB has racked up modest gains of just 17% in the past year, which boosted its price to $0.00000964 and market capitalization to $5.7 billion but leaves the token trading at an 88% discount on its all-time high.

Price predictions for crypto are generally very unreliable and even more so when discussing meme coins like SHIB so they should be taken with a pinch of salt. Coincodex is bullish on SHIB with a high price target of $ 0.00002034 for 2025 and $ 0.00006619 for 2026. Changelly7 more or less concurs with a 2025 target of $0.0000219978.

Remember that crypto prices are extremely volatile, and you should always do your own research before risking your capital. Nothing in this post should be considered as financial advice.

SHIB has lagged behind the broader market over the past 12 months.
SHIB has lagged behind the broader market over the past 12 months. Source: TradingView

Final Thoughts on Shiba Inu

Shiba INu was one of the most talked about cryptos in 2021 as some early investors turned small investments into life-changing sums of money. The hype has since died down, and the memecoin market has cooled. In response to changing market forces and community demands, Shiba Inu has tried to adapt by becoming a more serious project with its own DEX, DeFi tools, and several new tokens. SHIB’s price action has been lackluster in the past year, but the ongoing changes to its ecosystem and the launch of the Shibarium have been received positively.

Frequently Asked Questions

What Is Shiba Inu?

Launched in 2020, Shiba Inu (SHIB) is a meme-inspired cryptocurrency built on the Ethereum blockchain. Initially conceived as a “Dogecoin killer,” it quickly gained popularity due to its mascot, a charming Shiba Inu dog, and a dedicated online community (“SHIBArmy”). Despite significant price swings and concerns about token distribution, Shiba Inu boasts a growing ecosystem with its own decentralized exchange (ShibaSwap) and additional tokens (LEASH, BONE).

Is Shiba Inu Coin Available on Mainstream Trading Platforms Like Robinhood?

As of now, Shiba Inu coin is not available on mainstream trading platforms like Robinhood. However, Shiba Inu’s rising popularity may lead to its inclusion on such platforms in the future.

What is the Record High Value of Shiba Inu Coin, and When Was it Reached?

The record-high value of the Shiba Inu coin was reached on May 10, 2021, when it reached an all-time high of $0.00003791.

How Does the Burning Mechanism Affect Shiba Inu Coin’s Total Supply?

The burning mechanism is designed to reduce the total supply of Shiba Inu gradually. This mechanism involves destroying a portion of the SHIB coins in circulation, which reduces the total supply and increases the value of the remaining coins. The burning mechanism is designed to ensure that the value of Shiba Inu remains stable over time.

Peter Barker

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Peter Barker

Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.

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