While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
Cryptocurrencies are still wildly volatile. There’s probably no industry as risky as the crypto space. It’s over a decade now, and still, cryptocurrency investors warn that people should only invest what they are ready to lose. However, it’s, on the other hand, one of the most lucrative, and this brings sense to the concept of high risks promising more significant returns.
The industry is currently on fire over two sets of crypto projects; NFTs and the Shiba dog-inspired coins. Well, NFTs are a story for another day. Let’s dive deeper into the Shiba tokens. Dogecoin was the first Shiba dog-inspired coin. It is currently a hot topic following Elon Musk’s U-turn against Bitcoin but let’s focus on the Shiba Inu token.
What is Shiba Inu Coin?
The Shiba Inu Coin is one of the newest coins in the crypto space right now. On August 1, 2020, the coin was launched by an anonymous founder whose only available name is Ryoshi Shiba. At the time of its launch, the coin was nearly worthless, sitting at $0.00000001. Investing in the coin was equivalent to straight gambling as it was doing nothing fundamentally. Fast forward to 2021, the meme coin has been enjoying rapid growth and retails at $0.000009451 as of this writing.
Shiba Inu Coin Tokenomics
At its launch, the Shiba Inu Coin had a total supply of 1 quadrillion coins. The coin’s team sent half of the coins to Ethereum’s founder, Vitalik Buterin, while the other half got locked on Uniswap. The creators did not remain with any coins unless they later bought them via exchanges. Ethereum’s founder, on the other hand, recently used 50 trillion SHIB coins towards supporting the Indian community. Buterin channeled the $1.6 billion worth of coins towards India’s Covid-19 relief.
Buterin also sent over 400 trillion SHIB to a burn address. The move removed about 40% of the coin’s total circulating supply.
The coin has a unique program that will ensure its supply decreases over time. Every time a user purchases some SHIB tokens, a certain percentage gets burned through a transaction fee. Therefore, as the SHIB coin continues to trade, its supply will be decreasing.
What’s Behind Shiba Inu Coin’s Popularity?
According to its ‘wood paper,’ it developed the coin from questioning what would happen if the community entirely ran a cryptocurrency project. From this premise, the coin came to life. The Shiba Inu Coin goes by the symbol SHIB, and the developers also named it the ‘Dogecoin Killer.’ It is an ERC-20 token, meaning it’s built on the Ethereum blockchain. It can, therefore, use Ethereum smart contracts to create DeFi products. However, this is not the reason behind the growing SHIB popularity.
Shiba Inu Coin recorded a massive rally just recently that was followed by a crash days later. The movement is comparable to the much similar but a little more popular coin, DOGE. Like Dogecoin, SHIB is a meme coin inspired by the Japanese Shiba Inu dog breed. The founders intended to make an improved Dogecoin, and it’s now dubbed Dogecoin’s new version.
The close relation to Dogecoin is a probable reason for the coin’s price rally, although Buterin’s over 40% reduction in SHIB supply sent prices up 40%. Dogecoin has enjoyed celebrity support from Elon Musk, who turned his support against Bitcoin over environmentally unfriendly.
Where Can One Buy Shiba Inu Coins?
The Shiba Inu coin is available on several exchanges, including Coinbase, Binance, CoinDCX, Uniswap, and KuCoin. You can choose to buy on Uniswap via a Trustwallet, whereby you will exchange Ethereum for SHIB coins. Buyers can also use the other platforms, but they will need to connect their wallets to Uniswap. The wallet must have supported coins, and Bitcoin and Ethereum are the best options.
Are There Risks in Buying the SHIB Coin?
Currently, the value of the SHIB coin is significantly low. It lacks underlying value or use cases, and its price is based on speculation. Most of the Shiba Inu coins currently in circulation are in the wallets of a few individuals. About 78% of the total coins in circulation are with the top 100 holders, making the coin vulnerable to a pump and dump.
Shiba Inu’s DEX
The Shiba Inu project commits to providing the Dogecoin community with a better cryptocurrency ecosystem. The project is working on launching its decentralized exchange platform dubbed ShibaSwap. The launch date is not announced yet, although the team promises to deliver a safe DEX. Moreover, the decentralized exchange will revolve around the SHIB, LEASH, and BONE tokens. LEASH is another token released by the Shiba Inu team. Its Tokenomics are the opposite of SHIB coin’s Tokenomics. Also, the BONE token will be the sweet spot between the other two tokens, although it is yet to launch.
Although SHIB does not have any underlying value or use case, the developers feel it will outpace Dogecoin in the meme-coin world. The coin is currently on fire, although experts warn against investing in it. It’s a smaller coin and thus much more susceptible to pump and dump schemes by crypto whales. The coin’s future is uncertain, but there is a big chance the investors could lose their money if investing now.