What Is Shiba Inu (SHIB)?
Shiba Inu ($SHIB) is one of the most prominent meme coins, which are cryptocurrencies that are based on Internet memes and jokes. Dubbed the “Dogecoin Killer”, Shiba Inu launched in 2020 to challenge the popular Dogecoin (DOGE) cryptocurrency – which is based on the Doge meme featuring a Shiba Inu dog.
The project uses the dog theme throughout its white paper – called a “woof paper” – describing how SHIB tokens can be used to “dig”, or provide liquidity to “Puppy Pools”, “bury”, or stake, tokens, and “fetch”, or swap, tokens. These uses generate returns known as “Woof.”
SHIB quickly gained a community of supporters known as the “ShibArmy.”
How Does Shiba Inu Work?
Unlike Dogecoin, which runs on its own blockchain, SHIB is an ERC-20 token that runs on the Ethereum blockchain. According to the white paper, Shiba Inu was built on Ethereum because it was already “secure and well-established” and enabled the project to remain decentralized.
SHIB tokens are not mined. Rather, a total of 1 quadrillion supply was created from the project’s inception.
As an “experiment in decentralized spontaneous community building,” Shiba Inu is focused on implementing decisions from the community and supporting ecosystem projects.
What Is $SHIB Coin Used For?
The Shiba Inu project has raised criticism that it is a “pump and dump” scheme without real uses. But the token is now accepted as a form of digital payment by a number of retailers, including US cinema chain AMC.
Users can send and receive peer-to-peer payments using SHIB as a medium of exchange and trade the token for other cryptocurrencies on ShibaSwap.
History of Shiba Inu
The Shiba Inu cryptocurrency launched in August 2020 on the UniSwap decentralized exchange (DEX) to capitalize on the Dogecoin craze. The project was created with 1 quadrillion SHIB tokens, and developers sent 50% of them to the wallet of Ethereum co-founder Vitalik Buterin.
In May 2021, Buterin donated 50 trillion SHIB tokens to charity and burned 410 trillion tokens, stating that he did not want the responsibility of holding a large number of tokens belonging to another project.
The SHIB price soared by 40% in September 2021 after it was listed for trading on the Coinbase cryptocurrency exchange and as Tesla CEO Elon Musk kept endorsing dog-themed meme coins on social media.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
In October 2021, the SHIB price reached its all-time high – a staggering 154,000,000% gain from its launch. The coin briefly surpassed DOGE in terms of market capitalization, approaching $6.8 billion. But the price later fell back as cryptocurrency markets turned bearish.
In November 2021, Shiboshi non-fungible tokens (NFTs) were launched and quickly sold out.
The mainstream interest in SHIB started to wane in early 2022. The development team aimed to re-ignite interest by launching a cross-chain DEX and announcing plans for a SHIB-themed metaverse. In April 2022, the first SHIB coin burn took 2.41 billion SHIB tokens out of circulation.
By this time, SHIB had also begun attracting merchants such as cinema chain AMC to accept the token for real-world payments. The Shiba Inu developers subsequently announced plans to launch a SHI stablecoin.
In March 2023, the project launched a test version of its Shibarium network to run on Ethereum.
Attention #SHIBARMY 🚨
We're thrilled to announce that #SHIBARIUM Public Beta will be launching THIS WEEK! 🎉
— Shib (@Shibtoken) March 7, 2023
Shiba Inu Ecosystem
The Shiba Inu project has expanded to include several tokens and applications beyond SHIB:
LEASH: The second token in the Shiba Inu ecosystem was created with a total supply of only 107,646 tokens to provide loyal community members with exclusive access and benefits, such as liquidity rewards, NFT minting, and metaverse sales.
BONE: The ecosystem’s governance token has a total supply of 250 million, which is intended to sit between SHIB’s large supply and LEASH’s limited supply. BONE holders can vote on proposals submitted via the decentralized autonomous organization (DAO). The more tokens they hold, the higher the weighting given to their vote. BONE is only available on the ShibaSwap exchange. BONE also acts as the native coin for the Shibarium network.
ShibaSwap: The project’s DEX, where cryptocurrency holders can trade, swap, or convert their coins and tokens.
Shibarium: A Layer 2 blockchain network that runs on Ethereum to increase transaction speeds, reduce fees, and enable the development of Shiba Inu-themed decentralized apps (dApps).
Shiboshis: A collection of 10,000 Shiba Inu-themed NFTs generated and stored on the Ethereum blockchain. Each NFT has unique features and can be traded on ShibaSwap.
SHIB The Metaverse: Shina Inu’s virtual world where users buy plots of land, engage in immersive experiences, earn rewards, collect in-game resources, and build their own projects.
Future of Shiba Inu and $SHIB
The Shiba Inu project continues to develop its delayed Shibarium network protocol and prepare for the launch of the SHIB metaverse.
The future of the project will depend on the direction of proposals adopted by the community through the DAO. The developers could burn more SHIB tokens to further reduce the circulating supply, which could support the market price.
The coin’s price history reflects the volatility of the broader cryptocurrency markets. As such, SHIB’s future will also be influenced by the broader market sentiment and blockchain technology adoption.