What Is Shiba Inu Coin? How Does SHIB Work?

Image of a person's hand holding a gold coin with the Shiba Inu coin logo

In August 2020, a person or a group of people under the pseudonym Ryoshi made everyone online ask overnight “What Is Shiba Inu Coin?”. The cryptocurrency was created on the Ethereum infrastructure and quickly attracted the interest of traders and meme lovers on the internet.

The token is named after the Japanese dog breed and declared that will serve as an alternative for another meme coin with the same mascot – Dogecoin (DOGE). DOGE was created seven years earlier and is the first joke coin, made to mock cryptocurrencies and Bitcoin. SHIB emerged as the Dogecoin killer, aiming to take DOGE’s place as most popular meme coin. In this article about what is Shiba Inu coin, we’ll cover the information you may need if you’re interested in the cryptocurrency or considering buying it.

What Is Shiba Inu Coin (SHIB) And How Does It Work?

Shiba Inu is a meme coin. You may be wondering what does that mean, what is Shiba Inu coin then? Meme coins or joke coins are cryptocurrencies created around some viral internet meme or to make a joke of something. One of the most popular examples, as mentioned, is Dogecoin which makes fun of Bitcoin. Shiba Inu is a meme coin because it uses the popular Japanese dog breed as its mascot as well as it’s created to rival the first joke coin DOGE.

As any respectable cryptocurrency Shiba Inu coin has its own whitepaper, in the case called “woofpaper” to go along with the joke, which states the guiding principles and goals of the coin. According to Ryoshi, the crypto was created because the community behind it wanted to demonstrate that a decentralized project could be much more successful than anything a centralized institution can build.

The SHIB project was started from scratch, in the spirit of creating something from nothing. The people behind it assembled for the purpose of the project, they weren’t an existing team or community beforehand. The main thing that unites the SHIBARMY is also their love for Shiba Inu dogs, which they also help, using this token to support non-profit organization for rescuing species of the breed.
If you’re wondering what is Shiba Inu Coin’s purpose to be on the Ethereum blockchain, according to Ryoshi the network is very secure and well established, that’s why it can allow Shiba Inu to remain decentralized.

What Is Shiba Inu Coin’s Ecosystem?

You may have come here because you were wondering what is Shiba Inu coin. However, the cryptocurrency token SHIB isn’t the only part of the Shiba Inu ecosystem. While it’s the most famous thing about it, besides the cryptocurrency there are also the following components:

🐕 LEASH: A token representing the other end of the Shiba Inu ecosystem spectrum with a total supply of only 107,646 tokens

🐕 BONE: This is another token, designed to fit perfectly between SHIB and LEASH in terms of circulation supply as it has 250 million tokens.

🐕 ShibaSwap: A DeFi platform where you can stake and swap the tokens to earn passive income returns.

🐕 Shiba Inu Incubator: The platform for SHIBARMY that wants to encorage the community to share art in all forms, concerning the project.

🐕 SHIBOSHIS: 10,000 NFTs from Shiba Inu on the Ethereum blockchain.

Screenshot of the Shiba Inu coin website

What Is Shiba Inu Coin’s Price?

The Shiba Inu coin price is very volatile, in part because that’s normal for every digital asset, and also because meme coins tend to be even more unstable, compared to other assets. As most meme coins, Shiba Inu coin is still trading under a cent. However, it surprised investors in October 2021 when it got the top 10 cryptocurrencies by market cap by reaching its current all-time high. For a short bit of time it even pushed DOGE out of its place there.

The high price of SHIB was caused by Elon Musk’s crypto influence – the wealthiest person on Earth is an avid supporter of Dogecoin. However, when he tweeted a photo of his new Shiba Inu dog, the Shiba Inu coin price also started rising.

Sadly for the SHIBARMY the moment of glory didn’t last very long, as the cryptocurrency soon fell out of the top 10 list and consolidated in price. The bear market that followed also didn’t spare SHIB and now everyone is wondering if crypto will recover and when it will happen for Shiba Inu coin.

What is Shiba Inu coin’s current price compared to its highest level may turn down some investors, as it’s more than 85% down. However, the devoted community behind this crypto still believes it’ll reach a cent soon, or a dollar in the future.

What Is Shiba Inu Coin Going to Be Used for in the Future?

Shiba Inu coin supporters rely heavily on NFTs on the Ethereum blockchain to allow for the ability to conclude smart contracts in the future. However, the use cases of SHIB are currently very limited. As mentioned, Shiba Inu coin is a very volatile cryptocurrency, that has shown difficulties to rise in price when other cryptos have done it.

If the ecosystem evolves, the future of Shiba Inu coin may be bright, supported by the SHIBARMY and other meme lovers. But if the Shiba Inu coin price doesn’t move any further, all the good fundamentals of the project may not be able to help it reach any more highs. As all meme coins, Shiba Inu has a massive supply, which means it may have a harder time than assets with limited supply to gain in price, as its scarcity is lower. The test of time for Shiba Inu will be to see if its community is strong enough to continue pushing this crypto.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *