What is Shiba Inu (SHIB)? How It Works? Complete Guides 2024

Definition:

Shiba Inu [ SHIB ) is a token designed  to be an Ethereum-compatible alternative to Dogecoin (DOGE). Like DOGE, SHIB is intentionally abundant — with an initial circulating supply of one quadrillion coins. The Shiba Inu ecosystem also supports projects such as an NFT art incubator and a decentralized exchange called Shibaswap.

One of the biggest crypto stories of 2021 was the rise of Dogecoin (DOGE) — which an avid online community (and fans including Elon Musk and Mark Cuban) helped grow from an meme-based joke into a household name with a market cap in the tens of billions of dollars.

Like Bitcoin and Ethereum, Dogecoin runs on its own distinct blockchain — limiting its ability to interact with other kinds of protocols. The creators of the DOGE-inspired Shiba Inu token (or SHIB) saw potential in that limitation, and launched a new dog-themed memecoin that runs on the Ethereum blockchain in August 2020.

Because SHIB is issued as an Ethereum token, it’s compatible with the vast Ethereum ecosystem. Advantages include compatibility with Ethereum wallets like Coinbase Wallet or Metamask, availability on decentralized exchanges (or DEXs) like UniSwap, the potential for SHIB to be incorporated into ETH-based DeFi applications like lending and savings products and NFT marketplaces.

Who created SHIB?

An anonymous developer named Ryoshi launched SHIB in August 2020. The project began  with a total supply of one quadrillion tokens — a truly vast number.

SHIB, the token behind the Shiba Inu cryptocurrency, was created by an anonymous person or group known under the pseudonym Ryoshi.

There’s a shroud of mystery surrounding Ryoshi. They launched the Shiba Inu project in August 2020 and have since disappeared from social media. While Ryoshi created a woofpaper (a whitepaper parody) outlining the project, their true identity and motivations remain unknown.

Here’s a summary of what we know about SHIB’s creator: Shiba Inu

• Pseudonym: Ryoshi
• Active Period: 2020 (launched SHIB)
• Current Status: Disappeared from social media

Some theories and speculation exist about Ryoshi’s identity, but there’s no confirmation. The anonymity adds to the meme-coin nature of Shiba Inu.

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How does It work?

Shiba Inu operates on the Ethereum blockchain, leveraging its technology for transactions and smart contract functionality. Here’s a breakdown of how it works:

Built on Ethereum:

• SHIB, the Shiba Inu token, is an ERC-20 token, meaning it runs on the Ethereum blockchain. This provides several benefits:
  • Security: Inherits security from the well-established Ethereum network.
  • Smart Contract Functionality: Enables the creation of decentralized applications (DApps) on the Shiba Inu ecosystem.

Shiba Inu Token Supply:

• There’s a massive initial supply of SHIB tokens: 1 quadrillion (1,000,000,000,000,000). However, half of this supply was burned upon launch by sending it to an inaccessible wallet. This burning aimed to create scarcity and potentially increase the value of the remaining tokens.

Transactions:

• Transactions involving SHIB tokens occur on the Ethereum network. Users pay gas fees associated with Ethereum transactions.

ShibaSwap Decentralized Exchange (DEX):

• A key aspect of the Shiba Inu ecosystem is ShibaSwap, a DEX launched in 2021. This platform allows users to:
  • Swap SHIB tokens for other cryptocurrencies.
  • Provide liquidity (lock up crypto assets) to earn rewards.
  • Participate in yield farming (earn interest on crypto holdings).

LEASH and BONE Tokens:

• ShibaSwap also introduced two other tokens: LEASH and BONE.
  • LEASH has an uncapped supply and is seen as a long-term hold.
  • BONE is the governance token of ShibaSwap, allowing holders to vote on proposals for the platform’s development.

Criticisms:

• The massive initial token supply and dependence on hype cycles lead some to question SHIB’s inherent value.
• The focus on community-driven hype and social media trends can contribute to price volatility.

How did SHIB begin to catch on?

As part of the initial distribution, Ryoshi sent 50 percent of the token supply to Ethereum co-creator Vitalik Buterin’s wallet and used the other 50 percent to create liquidity on Uniswap’s decentralized exchange — from there, the tokens began to make their way into wider circulation.  Shiba Inu

But why did Ryoshi give half of all Shib to Buterin? 

• Ryoshi hoped that having a major holder with maximum credibility in the crypto community would be beneficial to the project. As Ryoshi said at the time: “There is no greatness without a vulnerable point and as long as VB doesn’t rug us [or dump his supply, tanking values], then SHIBA will grow and survive.”
• When SHIB’s value began soaring during the memecoin craze of summer 2020, Vitalik did in fact begin to liquidate a portion of his gifted coins by donating $1 billion worth of SHIB to the India Covid Crypto Relief Fund. 
• The donation became news around the world, hugely raising SHIB’s profile. After the donation, perhaps as a gesture of goodwill to the SHIB community, Vitalik “burned” another 410 trillion SHIB tokens (40% of the total supply) — permanently removing them from circulation.

What makes SHIB different from DOGE?

SHIB, unlike DOGE, is compatible with the Ethereum ecosystem — which has allowed the community to create crypto apps like ShibaSwap, a DEX that allows users to trade and stake tokens without an intermediary. 

In the future, the Shiba community plans to release an NFT platform and DAO-based governance system for the Shiba ecosystem (called “DoggyDAO”). You can check out the project’s “Woof Paper” if you’d like to see these and many other proposed ideas. Only time will tell if they’ll come to fruition, however.

Both Dogecoin (DOGE) and Shiba Inu (SHIB) are memecoins featuring adorable dog imagery and passionate online communities. However, there are some key differences between them:

Origin Story:

• DOGE (2013): Predates SHIB by several years. Created as a lighthearted parody of Bitcoin’s seriousness.
• SHIB (2020): Inspired by Dogecoin, aiming to capitalize on its memecoin success.

Total Supply:

• DOGE: Essentially unlimited. No cap on the total number of Dogecoin that can be mined.
• SHIB: Massive supply, but not entirely unlimited. There are 1 quadrillion (1,000,000,000,000,000) SHIB tokens in circulation, with half burned (sent to an inaccessible wallet) upon launch by the developers.

Focus and Community:

• DOGE: Known for its friendly and somewhat quirky community. Often associated with tipping content creators and online fun.
• SHIB: Strong community presence with a self-proclaimed “Shiba Army” of supporters. Leverages hype and social media trends more than DOGE.

Use Cases:

• DOGE: Primarily used for tipping, online purchases from some merchants, and peer-to-peer transactions.
• SHIB: Similar use cases as DOGE, but also aims to be integrated into the ShibaSwap decentralized exchange (DEX) and its ecosystem of other tokens (LEASH and BONE).

Price and Volatility:

• DOGE: Generally has a higher market capitalization and wider recognition compared to SHIB. Its price can still be volatile.
• SHIB: Known for being highly volatile due to its massive supply and dependence on hype cycles.

Overall:

• DOGE: The original memecoin with a longer history, friendly community, and focus on online fun and tipping.
• SHIB: The newer memecoin with a larger but potentially less stable token supply, aiming to establish its own ecosystem with its DEX and other tokens.

Choosing Between DOGE and SHIB:

The choice depends on your investment goals and risk tolerance. DOGE’s established presence might be appealing, while SHIB’s potential growth within its ecosystem could be attractive to some. Remember, both are memecoins with inherent volatility, so invest cautiously and only what you can afford to lose.

SHIBA INU PRICE PREDICTION?

Predicting the future price of any cryptocurrency, especially volatile memecoins like Shiba Inu (SHIB), is inherently difficult. However, I can provide you with some insights and resources to help you form your own informed opinion:

Factors Affecting SHIB Price:

• Market Sentiment: Overall positive sentiment towards cryptocurrencies can drive up SHIB’s price, while negative sentiment can cause declines.
• ShibaSwap Ecosystem Growth: Increased adoption and usage of ShibaSwap, including its DEX, staking, and yield farming features, could potentially increase demand for SHIB.
• Exchange Listings: SHIB being listed on more major cryptocurrency exchanges could increase accessibility and buying pressure.
• Dogecoin Performance: As Dogecoin is the original memecoin, its price movements can sometimes influence SHIB’s price.
• Hype and Social Media: Social media trends and celebrity endorsements can significantly impact SHIB’s price due to its memecoin status.

Current SHIB Price (as of June 23, 2024): $0.00001809 (subject to change)

SHIB Price Predictions from Various Sources:

• Changelly: Changelly predicts a slight increase in SHIB’s price by the end of 2024, potentially reaching $0.000024 https://changelly.com/blog/shiba-inu-price-prediction/
• Binance: Binance offers a daily prediction service, but their forecast for SHIB is only for short-term fluctuations, potentially reaching $0.000018 by the end of the week https://www.binance.com/en/price-prediction/shiba-inu

Important Considerations:

• These are just predictions, and the actual price could be much higher or lower.
• The cryptocurrency market is highly volatile, and SHIB’s price can fluctuate significantly.
• Invest only what you can afford to lose, as there’s always a risk of losing your entire investment.

Here’s what you can do to make your own informed decision:

• Stay Updated: Follow news and developments related to SHIB, the ShibaSwap ecosystem, and the cryptocurrency market as a whole.
• Research SHIB’s Technology: While it’s a memecoin, understand how it works on the Ethereum blockchain and the features of ShibaSwap.
• Consider Your Risk Tolerance: Only invest what you’re comfortable potentially losing, given the inherent volatility of memecoins.
• Diversify Your Portfolio: Don’t put all your eggs in one basket. Consider SHIB as a small part of a diversified crypto or overall investment portfolio.

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