Do you still think that the Shiba Inu is a dog breed? Then you are not aware of the latest trends in the crypto market.
Shiba Inu is a meme token, and its mascot is really a cute Japanese dog. RYOSHI created the token in 2020.
It is still unknown who this or that is, as well as it is unknown who hides under the name Satoshi Nakamoto.
But such mystery has not stopped bitcoin from exploding the world and people’s idea of money as something tangible.
It seems that Shiba Inu has a future no less promising. We can already judge that by the fact that the information about this token on the Internet was viewed 43 million times more than about bitcoin.
So, who is this “puppy” that could stir up the whole crypto-space with its “barking”?
A bit of history
Shibu Inu was originally conceived as a project to kill another member of the dog family in crypto, Dogecoin.
The meme coin was created based on Ethereum. As mentioned, its creator is RYOSHI, but who this person or group of people is still unknown.
There is a suspicion that this group included one famous person in the crypto world – Vitalik Buterin (creator of the Ethereum platform).
Otherwise, how to explain that 50% of tokens, which is 505 trillion, went to him. Maybe it was a marketing move to attract attention to the coin, or maybe it was Buterin’s share as the founder.
Nevertheless, he burned 90% of the tokens as soon as he received them. It paid off. In 2021, only lazybones in the crypto-world weren’t talking about SHIB.
The token price soared 10 times. Crypto exchanges began to accept the token for listings.
One can often read online that the popularity of the Shibu-inu rests solely on the hype created around the token, that in fact, it has no use for the user.
But it doesn’t. The ecosystem supports utilities, specifically NFT and Defi in ShibaSwap.
The latter platform provides trading security and decentralization. But that’s not all. Protocols are being actively developed to reduce transaction costs and to add other utilities.
Another reason for the popularity of the token is the attention of Elon Musk.
After Musk wrote on his Twitter that he was interested in this cryptocurrency, it immediately went up by almost 300%.
But that’s not all there is to know about Shiba Inu.
5 facts to know about Shiba Inu
To understand what is unique about this token, you need to have more information about it.
We present the most basic facts about this cryptocurrency.
The Shiba Inu is not a coin
Shiba Inu is a token because it does not have its own blockchain but is built on the Ethereum platform.
Shiba Inu is an ecosystem
For example, DOGE and BTC are coins, while BAT, Tether, USD Coin are tokens.
It consists of 3 tokens – SHIB, LEASH, and BONE. With that, SHIB has become the most prominent and popular in this ecosystem.
Shiba Inu supports Defi
Smart contracts enable users to place bets, lend tokens and have passive income from commissions.
Initially, the token was positioned as a competitor to another popular meme, Dogecoins. It is worth saying that the creators succeeded a lot.
SHIB became the second most popular meme token, surpassing Cardano and Solana by the number of Twitter followers.
3 rules of the Shibu inu maker
Even though the developer of this token is an anonymous person or group of anonymous persons, he voiced three rules that were observed during the creation of the platform, which are still in effect today:
- The project must have $0 dollars invested in it;
- The project is being promoted for $0;
- The developer has the right to buy tokens, as do other users.
As conceived by the developers, these rules were to isolate the token, as well as make it impossible to centralize control.
Where SHIB trades
The fact that token quotations began to grow is due to its addition to the listings of major cryptocurrency exchanges.
When Shibu-Ina was listed on Coinbase, its price rose by 33% in just one day. The same can be said about other major platforms.
The reasons why exchanges decided to diversify their trading assets with this token are different.
Some considered the similarity of Shiba Inu and Dogecoin to be an advantage, others are rumored to have the support of Vitalik Buterin.
But whatever the reasons, today the token is traded on many popular platforms.
Shibu Inu can be bought, sold, or exchanged on more than 80 exchanges, including leading exchanges.
The token is paired with fiat currencies such as the U.S. and Australian dollars and the euro.
It also trades with stablecoins USDT, BUSD and other altcoins DOGE, WETH.
Mining Shiba Inu
The PoS algorithm assumes that tokens are issued as soon as the platform is launched, not mined. But the ecosystem assumes stacking.
A holder can earn cryptocurrency by holding it, which helps maintain liquidity and validate transactions.
To explain this process, we can draw an analogy to a bank deposit. When a customer deposits their funds into an account and receives interest for their storage and use by the financial institution.
Steaking is possible using two ways. The first is through an exchange. If you have an account, you just need to buy a SHIB and select a particular function.
On different exchanges, the algorithm is different, so you can ask for help from technical support.
Staking is more profitable in a wallet, but the process is more complicated. The general algorithm is as follows, you buy a SHIB, specify the duration of the steaking and the value of the deposit. The amount is blocked. At the end of the specified term, the deposit will be unblocked, and the holder gets his assets and remuneration back.
How you can use SHIB tokens
Developers benefit greatly from cooperation with large corporations. First of all, it is a marketing move. Such cooperation increases trust in the platform among users.
Where there is trust, there are investors. Investors attract partners, which can also include large companies. In this way, the process may seem cyclical.
But it is this cyclicality that is the key to the success and popularity of cryptocurrency.
This is why Elon Musk’s post sparked interest in this token. From time to time, he supports this interest with other posts, which attracts investors, the cryptocurrency’s popularity grows, large companies start to be interested in it.
So global marketplaces have either already launched settlements in SHIB or are going to do so in the near future.
Simultaneously with the release of the token, the developers launched the ShibaSwap exchange to support their cryptocurrency. The year 2022 was marked by the developers joining Shiba Inu in the “Metavieworld” movement. In their own cryptocurrency meta-universe, you can buy land by paying with SHIB. But the developers didn’t stop there. It is negotiating with other metavalleys. The negotiations aim to include SHIB in alternative payment types.
When and how to buy a Shiba
The main thing that everyone who wants to buy this promising cryptocurrency should know – it should not be considered as a long-term investment, but for short positions, it is well suited.
Second, if there is a general market decline, as is happening in 2022, don’t rush to buy. If you want to open a short position, wait for the end of the decline. It is not necessary to analyze the token itself.
Look at the general market trends. SHIB short positions are ideal to open on a reversal. Then there is an opportunity to take the cryptocurrency at a minimum price and quickly sell it at a higher value.
When analyzing the market, it is worth looking at data not only for the last few days. It is optimal to cover 2-4 weeks.
Do not believe claims that Shiba has no practical value. Currency is accepted for settlement on marketplaces, traded on leading exchanges, and the ecosystem supports utilities.
Many argue that the currency is too dependent on the attention of media personalities, citing the example of Elon Musk.
In fact, the token follows more market trends, just like other cryptocurrencies, including bitcoin.
Shiba Inu is more suitable for short-term investments than for long-term storage or accumulation.
Cryptocurrency Shiba Inu is promising. It is worth just analyzing how many meme-tokens out of 80 achieved this result. Whatever some experts say, it is a very promising option for short positions.