Here are some important details about the Shiba Inu cryptocurrency:
- Shiba Inu is one of the most well-known memecoins
- The Shiba Inu token was developed in 2020 by an anonymous individual known as Ryoshi
- The cryptocurrency's name comes from the famous internet “Doge” meme
- The maximum quantity of Shiba Inu is one quadrillion tokens
- In October 2021, the Shiba Inu price reached its all-time high (ATH) of 0.00007924 US dollars per token
Exploring Shiba Inu as a cryptocurrency
Shiba Inu (SHIB) first emerged in 2020 and the mastermind behind this popular cryptocurrency is an anonymous individual known only by the pseudonym "Ryoshi". The token is inspired by the well-known “Doge” meme, featuring a Shiba Inu dog. Shiba Inu was conceived as a response to Dogecoin, the pioneer memecoin, which likewise references the Doge meme. Beginning as an experimental project, it rapidly grew into a considerably large community, becoming one of the most recognised memecoins of today. Currently, its soaring market capitalisation has propelled it into the top 10 of all cryptocurrencies.
The subject of memecoins is contentious. This is primarily because, unlike their counterparts, they don't serve a distinct purpose or deliver additional value. They're, essentially, currencies created for amusement. However, the SHIB token is currently on a trajectory towards becoming a serious contender in the world of cryptocurrencies. The SHIB ecosystem has expanded to include several "sub-currencies" like LEASH and BONE. Furthermore, the token has sparked a multitude of diverse projects, commanding the attention of enthusiasts.
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Distinguishing between coins and tokens: know the difference
Though often used interchangeably, the terms 'coin' and 'token' have unique meanings. Shiba Inu, for instance, is a token, not a coin. A coin is a digital currency used purely for payments, whereas a token can provide additional functionality. It's a digital asset that delivers certain functions or offers utility within a project. Bitcoin, for example, is a pure coin. Shiba Inu, conversely, isn't a coin. This cryptocurrency is associated with several projects facilitated via the SHIB token, such as ShibaSwap.
Ethereum blockchain: The underlying infrastructure
Like many other cryptocurrencies, the primary Shiba Inu token is built on the Ethereum blockchain. Envision a blockchain as a sequence of interconnected chains: a decentralised database that logs transaction information. For each fresh transaction, a unique block is created that holds data about the current transaction and all preceding transactions on the same blockchain. The database is not stored centrally, but is disseminated across countless computers worldwide, making manipulation very unlikely. The two sub-tokens, LEASH and BONE, also rely on the Ethereum blockchain.
Shibarium: A dedicated second-layer blockchain
Among the many projects of Shiba Inu is Shibarium, a second-layer blockchain devised to both augment transaction speed and minimise costs. Here's how it works: a secondary layer exists above the primary blockchain, named the "second layer". Certain transactions are processed exclusively by this second layer, enhancing transaction scalability and speed. This approach alleviates the burden on the main blockchain, which remains unaltered. Second-layer blockchains are relatively uncommon, but they possess immense potential. Besides the Shiba Inu token, Bitcoin also utilises a second layer for its "Lightning Network" protocol, which manages payment streams outside of the main blockchain.
Shiba Inu as a payment medium
Initially, the Shiba Inu cryptocurrency wasn't originally envisioned as a payment medium. However, an increasing number of companies are now accepting the currency for payment. These include online electronics retailer Newegg and cinema chain AMC Entertainment. Since December 2021, Shiba Inu has been accepted as a form of payment by over 40,000 retailers across the US and Canada, following its integration into the Flexa Payment Network.
Essential information about Shiba Inu
Here are the key points you should be aware of regarding the Shiba Inu cryptocurrency:
- The Shiba Inu token entered the market on August 2, 2020 at a price of $0.000000001009
- Just two days later, the SHIB price dropped to $0.0000000001450
- On October 28, 2021, Shiba Inu reached its all-time high of $0.00007924
- A collection of 10,000 NFTs in the form of Shiba Inu avatars was released on 14 October 2022 and sold out in just 34 minutes
- With a market capitalisation of around $7.3 billion (as of early February 2023), Shiba Inu ranks among the top 15 of all cryptocurrencies
- Shiba Inu is an open-source cryptocurrency based on the Ethereum blockchain
- The Shiba Inu cryptocurrency was launched in 2020 as an experimental project by the anonymous developer Ryoshi
- The SHIB token is part of a group of cryptocurrencies that derive from the famous, meme-inspired cryptocurrency Dogecoin
- The logo features a Shiba Inu with an angry facial expression
- To date, the memecoin has developed significantly
- Shiba Inu has a limited amount of one trillion tokens, with some of the tokens having been "burned"
- Shortly after the launch of Shiba Inu, 50% of the supply was transferred to Ethereum developer Vitalik Buterin to enhance the cryptocurrency's visibility
- A significant portion of the total amount of SHIB tokens was donated to foundations
- According to the developer of Shiba Inu currency, they didn't keep any tokens, unlike the creator of Bitcoin
- In 2022, Shiba Inu was the most popular asset among first-time buyers in India
- Long-term crypto holders usually place a lot of trust in SHIB tokens and hold onto them for the long term
- There's no specific information about major investors; there's only talk of heavily invested Ethereum whales
- Shiba Inu has developed its own trading platform called ShibaSwap
- A subsidiary was established at the request of the large community to bring Shiba Inu Games to market
- You can store your SHIB tokens in a wallet
- Many cryptocurrency exchanges offer trading with Shiba Inu tokens
If you're keen to delve deeper into this cryptocurrency, the Shiba Inu whitepaper is an excellent resource.
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Pricing insights for the Shiba Inu token
The price of Shiba Inu is predominantly influenced by social media buzz and online trends. This was evident during the significant rise in SHIB's price in February 2021, when headlines involving Elon Musk and the GameStop short squeeze sparked a meme frenzy.
However, other factors can also sway the price of Shiba Inu. These encompass traditional price regulation through supply and demand, along with other considerations such as overarching trends in the crypto market, media coverage of SHIB and the DeFi (Decentralised Finance) sector, and technological advancements within the Shiba Inu platform, ShibaSwap.
Shiba Inu price: Milestones and significant events
Upon its market debut, the Shiba Inu token was priced at 0.000000001009 US dollars per token, but within two days, it plummeted to 0.0000000001450 US dollars. The cryptocurrency experienced its first real surge in early May 2021, when news broke that crypto exchange Binance was adding SHIB tokens to its tradable offerings. However, by the close of May, the price had receded to 0.000008100 US dollars, and it further declined in June to 0.000006210 US dollars, maintaining a steady level thereafter. On October 28, 2021, a rapid ascent saw the Shiba Inu price reach its all-time high of 0.00007924 US dollars. The buzz around the SHIB token gradually began to fade. Just a month later, on November 28, 2021, the Shiba Inu price had fallen to only 0.00003927 US dollars per token. In February 2022, the SHIB token price experienced a slight recovery, only to fall further in May 2022. The next minor peak didn't occur until August 2022, and since then, the Shiba Inu price per token has been generally stable.
The most significant milestones and events influencing the Shiba Inu price to date are:
- August 2020: 0.000000001009 $ / SHIB token (entry price)
- April 2021: 0.000003710 $ / SHIB token (first noticeable price increase)
- May 2021: 0.00003469 $ / SHIB token (first significant price increase)
- October 2021: 0.00007924 $ / SHIB token (all-time high)
- December 2021: SHIBA INU becomes the most searched cryptocurrency, relegating Bitcoin to second place
- June 2022: 0.000007720 $ / SHIB token (lowest price after the all-time high)
- August 2022: 0.00001692 $ / SHIB token (highest price after the all-time high)
- October 2022: 10,000 SHIBA INU NFTs were offered for sale and were sold out within 34 minutes
The evolution of the Shiba Inu token so far
The memecoin Shiba Inu, being relatively new, lacks the extensive history of pioneers like Bitcoin and Ethereum or its direct predecessor, Dogecoin. However, there are several intriguing aspects and events related to the original project, SHIB.
The tale of the largest crypto donation
Following the launch of the SHIB cryptocurrency, 50% of all Shiba Inu tokens were sent to Ethereum developer Vitalik Buterin. This isn't an oddity, but rather a common practice. Founders of new crypto projects often do this hoping for a surge in their coins – making the transaction a marketing manoeuvre that also created artificial scarcity of SHIB tokens. Buterin, not a great fan of this typical strategy, chose an unexpected route. He orchestrated the largest-ever cryptocurrency donation by giving away one billion US dollars worth of Shiba Inu to an Indian COVID-19 relief project. Buterin further converted additional SHIB tokens into Ether, Ethereum's native cryptocurrency. But that wasn't all: approximately 90% of his remaining SHIB token holdings were transferred to an unusable wallet. In other words, these tokens became inaccessible and were, in technical terms, "burned".
Elon Musk sparks a memecoin frenzy
Elon Musk is well-known for his fondness for cryptocurrencies. When a tiny Shiba Inu puppy named Floki joined the Musk household in mid-September 2021 and subsequently dominated the Tesla founder's Twitter feed, a significant memecoin hype ensued. Many interpreted this as a subtle hint from Musk about investing in memecoins. Alongside Dogecoin, SHIB tokens also experienced a swift ascent. New tokens, like Floki Inu Coin, were even created, using the name of Musk's puppy. This frenzy led to the all-time high of the SHIB price.
It's important to note: the influence of social media on the price of Shiba Inu highlights how volatile this cryptocurrency, along with all other memecoins, can be. Volatility refers to the potential price fluctuations of an asset. Past performance isn't indicative of future trends. Therefore, predictions about price changes should be approached with caution.
The unpredictable journey of Ethereum whales
In October 2021, when the memecoin hype was at its peak, many of the largest Ethereum whales invested in Shiba Inu tokens. This, along with Elon Musk's Twitter posts, further stoked the SHIB price, leading to the cryptocurrency's all-time high. However, when the SHIB price began to fall a few weeks later, with no reversal in sight, 5,000 of the largest whales notably reduced their Shiba Inu holdings during this downturn. Despite this, the cryptocurrency managed to bounce back. Currently, the memecoin SHIB is among the top 10 token positions held by the 5,000 largest Ethereum whales.
The journey from memecoin to respected cryptocurrency
Shiba Inu seeks to cement its position as a credible cryptocurrency. The creation of its own ecosystem, comprising the trading platform ShibaSwap and two sub-tokens, LEASH and BONE, has marked the initial steps towards this objective. With the implementation of a two-layer blockchain and an announced ambition to develop its own metaverse, the pursuit of this goal continues. The timeline and success of this memecoin's consolidation among top-tier cryptocurrencies remain to be seen.
Factors influencing the Shiba Inu price
Shiba Inu is a highly volatile cryptocurrency, with its price susceptible to a multitude of influencing factors. Being a relatively new entrant to the market and originally conceived as a joke, it is greatly dependent on current trends and news. This is most noticeable in the hype incited by Elon Musk.
Here are the specific factors that can influence the Shiba Inu price:
- Hypes driven by a fervent community or prevailing trends
- Influence by notable figures, such as Elon Musk or Vitalik Buterin
- Launch of development projects like ShibaSwap
- Announcement of forthcoming projects like their own metaverse
- Collaborations with other companies like the Flexa Payment Network
- Issuance of NFTs
These factors generally influence the entire crypto market:
- Technical disruptions or application errors
- Government regulations
- Supply and demand dynamics
- Global events, like the COVID-19 outbreak or the Ukraine conflict
- Shifts in the two most dominant cryptocurrencies, Bitcoin and Ethereum
ShibaSwap: The decentralised trading platform
Shiba Inu introduced its own decentralised trading platform, known as ShibaSwap. Built on the Ethereum blockchain, it employs SHIB tokens as the core currency. This marketplace enables traders to exchange and lend cryptocurrencies. In addition, ShibaSwap provides its users with a feature known as liquidity farming. Traders who contribute their cryptocurrencies to the platform are rewarded, potentially through interest or additional crypto assets. This mechanism can bolster the liquidity of ShibaSwap itself, while users have the chance to accrue cryptocurrencies without needing to engage in active trading.