Cryptocurrencies in general have had a hell of a ride in 2021–2022, but the Shiba Inu coin has rather benefited from this mess.
Despite having a value on the lower side, the Shiba Inu Coin has gained popularity for a huge number of reasons.
However, the coin is dominating a huge portion of the market and had proven to be a great option for investors in the last year.
You’ve come to the right site if you’re interested in learning more about the Shiba Inu coin and gaining clarification on what it is. The Shiba Inu coin, however, what is it, and how did it originate in the cryptocurrency scene? Is it worthwhile to invest in? Let’s take a look!
What Is Shiba Inu Coin?
The SHIB coin is a meme-based cryptocurrency with the logo of the Japanese Shiba Inu dog breed. SHIB gained traction during the rising market of spring 2021, but the true momentum came after Elon Musk’s appearance on SNL.
Shiba Inu has a total supply of one quadrillion SHIB.
Shiba Inu runs on a decentralized computer network using a blockchain-based database, well like various other cryptocurrencies.
The cryptocurrency is tracked as well as managed by this particular blockchain database. This also records all transactions and cross-verifies them.
In the end, the blockchain database serves as a comprehensive log of the activity of the cryptocurrency. Shiba Inu specifically is operated by the security and features of the Ethereum blockchain.
This is why Shiba Inu’s consensus mechanism is the same as Ethereum’s: Proof-of-Work (PoW), moving to Proof-of-Stake (PoS).
The mining rewards are determined by the processing capability of the nodes under the PoW algorithm. Mining rewards are determined by the number of coins staked in the network through the PoS algorithm.
SHIB coins are ERC-20 tokens in the Ethereum network, as previously stated. These tokens are fungible, which means they may be copied because each one has the same value.
When Shiba Inu was introduced to the trading platform, Coinbase in September of 2021, its price rose sharply.
Since then, its price has continuously decreased in line with the overall cryptocurrency market crash.
How Did The Shiba Inu Coin Originate And Its History?
Shiba Inu had a one quadrillion token initial supply when it was first released in August 2020.
Initially, Dogecoin did not achieve much success. Dogecoin began to become a serious investment as the years passed and its community grew. This inspired others to create their own coins based on memes or just on Dogecoin itself. Shiba Inu was born in this manner.
Shiba Inu’s originator is unknown and goes by the name Ryoshi. But, unlike other Dogecoin-inspired coins, Shiba Inu has a clear goal: to outshine Dogecoin. Shiba Inu intends to accomplish this by offering more and better services than Dogecoin.
Shiba Inu’s first significant event occurred in May 2021 when its creator sent half of the quantity to Ethereum founder, Vitalik Buterin.
This was widely regarded as a marketing gimmick to capitalize on the popularity of another coin that was more well-known. There is no brilliance without a weak spot, Ryoshi said in a mysterious manner.
In the end, Buterin burned (destroyed) 90% of the coins and gave away 10% of them. As a result, there are presently around 549 trillion Shiba Inu tokens in circulation.
In July 2021, Shiba Inu introduced ShibaSwap, a decentralized exchange of its own.
In order to create a cryptocurrency gaming project, it teamed up with David Folk (former Vice President of Technologies at Activision).
Shiba Inu’s price at the beginning of 2021 was $0.000000000119. In that year, it reached a high of $0.00008845.
It can be challenging to compare such tiny amounts, but it is simpler to consider that the rate had increased by far more than 74 Million Percent in October 2021. After then, it saw a severe decline, with the value falling by over 75%.
The maximum number of SHIBs is 589,735,030,408,323. More than 549,000,000,000,000 have been mined as of mid-2022.
This indicates that less than 7% of Shiba Inu is still available for mining.
What Is The Shiba Inu Ecosystem?
Discussions about Shiba Inu adoration can take place in the bizarre and lovely Shiba Inu ecosystem.
From individuals who simply adore the species to those who have committed their entire lives to breeding and demonstrating them, the community is made up of a wide variety of people.
It is a place where individuals can congregate to exchange knowledge, gain from one another, and aid one another in their goals.
The Shiba ecosystem is an open-source environment of protocols, platforms, and decentralized applications (DApps) that enables the development of smart contracts and DApps on the Ethereum blockchain.
The Shiba Inu token lives in the Shiba Inu ecosystem (SHIB). A token called SHIB was developed as a knockoff of the other, similar, and better-known cryptocurrency Dogecoin (DOGE). Within the ecosystem, Shiba Inu tokens are used to pay for goods and services.
The Shiba Inu ecosystem is a group of individuals and businesses who collaborate to add value to the Shiba network. Users, companies, investors, and developers all make up the ecosystem.
Users can use applications and services created by developers to communicate with the Shiba Inu network. Investors give money to businesses and developers so they can create products and services.
How Does Shiba Inu Work?
The cryptocurrency, Shiba Inu coin (SHIB) was established in August 2020. A fork of the well-known cryptocurrency Dogecoin created SHIB.
SHIB is a peer-to-peer (P2P) decentralized cryptocurrency that allows users to make and receive payments decentralized, much like DOGE. Compared to DOGE’s block period of ten minutes, SHIP’s rapid block time is only one minute.
A decentralized cryptocurrency exchange is where Shiba Inu coins can be exchanged.
There is no single failure point for the company because decentralized bitcoin exchanges do not rely on a such central authority.
Additionally, decentralized exchanges are frequently more resistant to fraud and cyberattacks.
In keeping with the canine concept, the above-mentioned Shiba Inu Cryptocurrency employs dog or canine terms to explain how returns from Shiba Inu tokens can be generated.
These tokens can be “dug” (to generate liquidity), “buried” (to stake tokens), and even “fetched” on ShibaSwap (exchange a token for another).
According to a news agency, tokens utilized in these tactics give you “Woof” rewards in the form of “Bone” tokens which are allocated to your asset pools known as “Puppy Pools.”
Meme coins’ rejection of standard procedures is part of what appeals to cryptocurrency aficionados, and this unique approach may even extend to the usage of canine terminology to define return schemes.
However, they do appear to be a far cry from conventional investment words like return on investments and liquidity.
Is Shiba Inu A Good Investment In 2023?
Shiba Inu is an extremely risky investment that has probably already reached its peak.
Early adopters may have generated significant profits, but the hype and no technical advantages as such were mostly to blame for that success. You would be better off investing in more practical cryptocurrencies or stocks of cryptocurrencies with higher long-term worth.
The issue is that there are rival cryptocurrencies that are better at everything Shiba Inu does than Shiba Inu itself.
The Shiba Inu coin can be utilized as money, however, because it’s based on Ethereum, processing delays and fees are frequently long.
Other cryptocurrencies, like Solana (CRYPTO: SOL), provide transactions that are faster and more affordable.
Another application for accessing the Shiba Inu marketplace is ShibaSwap, but it competes in a saturated market.
The market leaders, such as Uniswap and PancakeSwap, are significantly bigger than ShibaSwap despite the fact that there is already a lot of DEXs available.
Though they occasionally succeed, meme stocks and meme coins rarely do. What is most likely to happen? Shiba Inu’s prime is over.
Harry Aston is a technology writer with a Master’s in Computer Science from MIT. He has over 5 years experience simplifying complex tech topics like AI. His writing makes emerging technologies accessible for mainstream readers. Harry aims to educate people on AI’s potential to improve society.