18 min to read.
What is SHIB
Is SHIB crypto a good investment? What is SHIB crypto used for? Will Shiba coin reach $1?
What is Shiba SHIB
Tokens that were born thanks to famous memes or pictures of cute animals are not uncommon. There are already Dogecoin, Baby Doge Coin, Kishu Inu on the market. Some of them show dizzying rate jumps and get into the TOPs in terms of capitalization, while others turn out to be a scam and a failure for investors. It plays an important role: does the real utility of the coin lead to an increase in the price, or is it “empty” and takes off only because of the hype, and then falls rapidly. The SHIBA INU Cryptocurrency Review will reveal what is behind the token, whose price has risen by more than 110,000% in less than a year.
History of SHIBA INU (SHIB) Cryptocurrency
The project was launched in August 2020 by an anonymous user under the nickname RYOSHI. It immediately positioned itself as the main competitor of the Dogecoin meme-cryptocurrency.
This is a conscious move to create a fully decentralized system. It will not have a CEO or a technical person who is in charge of everything and creates a roadmap. There is no person who can be held responsible for failure or success. Only the investors themselves are responsible for the investment.
The approach to the distribution of coins was also non-standard:
- RYOSHI sent 50% of the total number of coins (505 trillion) to Vitalik Buterin. At the exchange rate of that time, this is about $ 13 billion. The goal of this step is to destroy coins forever.
- The remaining 50% of the tokens were blocked in the largest decentralized exchange (DEX) Uniswap. According to the creator, he no longer has access to these coins.
Although many crypto projects have only talked about decentralization, Shiba Inu has really come close to it more than others.
The startup was helped by an "unknown friend". In a late interview, RYOSHI named him as an influencer in the cryptocurrency industry. Then dozens of conspiracy theories began to appear. The most popular version is that the project is assisted by Vitalik Buterin , the creator of the second most popular ETH coin.
Arguments cited to support the Ethereum CEO being involved in the success of the meme-cryptocurrency:
- Trading on the decentralized exchange Uniswap became possible as an unknown person donated 10 ETH to RYOSHI (at the exchange rate of November 2021 - $47,000) and provided liquidity for the ETH/SHIB pair. And for an anonymous friend, it was an insignificant contribution. That is, we are talking about a wealthy investor.
- It was Vitalik Buterin who received the tokens. And a week after receiving them (in May 2021), the CEO of Ethereum destroyed 90% of them, as RYOSHI wanted. The remaining 10% was donated to India's COVID-Crypto Relief Fund for charity.
- After burning the coins, Vitalik Buterin was called a “friend of SHIB” in the project blog.
- According to RYOSHI, the meeting with the investor first took place at the Ethereum Devcon conference in Japan in 2019. Photos of a company of programmers appeared on the network, including Vitalik Buterin with a Shiba Inu dog.
The CEO of Ethereum did not comment on whether he is that "unknown friend". Rumors and theories have become another factor fueling interest in the project.
RYOSHI and his associates believe this is not the only reason for their popularity. They presented the project ecosystem and its products, proving that their startup and cryptocurrency have real value. For example, 2 more tokens were created: LEASH and BONE. And on July 6, 2021, ShibaSwap, its own decentralized exchange, was launched.
According to the anonymous developer, the entire project is an experiment in the decentralized, spontaneous creation of a digital token. Each holder is on a par with the creator. This is rare, because often, even if there are statements about the absence of a management company, the developer studio owns 20-50% of the coins. It is her team that launches most of the validator nodes and makes important development decisions.
In this blockchain startup, everything is built on the community, interaction and initiatives of the participants. The Holders call themselves the Shiba Army (SHIBArmy). And in November 2021, this is one of the most active crypto associations. The number of participants exceeds 585,000. The Twitter account has 1.9 million followers who actively communicate and are united by a common idea.
RYOSHI voiced the rules that were involved in the project and made it unique:
- Not a single dollar was invested in its creation.
- Initially, there was no community. All designers, programmers, marketers, administrators came as we launched and developed.
- The coins did not go to advertising or other development of the startup.
- Rayoshi didn't have a single token. He was only able to buy the SHIB cryptocurrency when it entered the markets.
The developers did not create their own blockchain, but used the already existing Ethereum network, as it corresponded to the philosophy of the project. Upon completion of the transition to the updated version of Ethereum 2.0, transactions on the network will become faster and cheaper due to the greater scalability of the blockchain. So, according to the creators, there will be no problems with launching high-performance decentralized DApps.
The ultimate goal is to launch the best decentralized ecosystem (DECO). It already has a DEX called ShibaSwap. According to Raioshi, it should become a top service for decentralized, secure exchange and earnings on ERC-20 standard tokens.
Additional initiatives launched under the project:
- Charity. The name of the cryptocurrency was chosen because the enthusiasts of this startup love Shiba Inu dogs. They partnered with AmazonSmile, which allows them to donate % of purchases to charity. When applying for the purchase of goods, you can choose the Shiba Inu Rescue Association. This is a non-profit organization.
- Art. The Shiba Inu Incubator is a project designed to bring together artists, graphic designers who like the theme of the project. You can submit an application, fill out a questionnaire, and then a team of holders will suggest tools and help bring your art idea to life.
What is SHIBA INU cryptocurrency in simple words
The central place is occupied by the DeFi decentralized financial instrument - the ShibaSwap exchange.It does not have a governing body, it gives access to both fast exchange operations and passive income options: providing liquidity, staking.
It is based on 3 native tokens: SHIB, LEASH and BONE . They are issued on the Ethereum network, and their standard is ERC-20. Information about each is presented in the table:
|SHIB||The “Dogecoin killer” and the most popular coin in the ecosystem. It was his breakneck price spike that caught the attention of investors and crypto experts in 2021. It became the first token on Uniswap, being traded on ETH (thus becoming available to investors) and on the ShibaSwap DEX.|
|BONE (translated as bone)||management token. It will enable
SHIBArmy to vote on all proposals for the future Autonomous Decentralized Organization DAO - Doggy. Its total issue is 250 million.
|LEASH (translated as a leash)||
At first, it was created solely as an elastic token: the circulating supply can change due to price fluctuations. But then this idea was abandoned. Its release is limited to 107,646 coins. ShibaSwap pays rewards to holders for providing its liquidity.
The main token of the ecosystem was called the “Dogecoin killer” for 2 reasons:
- SHIBarmy wants it to become the main "dog" cryptocurrency.
- At a price of less than $0.001, it can overtake Dogecoin in terms of capitalization. This already happened at the end of October 2021: the figure exceeded 40 billion. The capitalization of the competitor was more than 39 billion.
Basic data on the SHIBA INU crypt are presented in the table:
|PARAMETER (AS OF NOVEMBER 2021)||COMMENT|
|Place in the TOP on CoinMarketCap||#11|
|Capitalization||Over $30 billion|
|All-time high||$0.00008845 (Oct 28, 2021)|
|Lowest price of all time||$0.000000000118 (August 27, 2020)|
Principle of operation
ShibaSwap operates on the Ethereum blockchain. The principles of its operation are the same as those of other decentralized exchanges. To start trading or passive income through DEX, you need:
- Create a MetaMask, WalletConnect or CoinBase Pro crypto wallet. It is necessary for the further purchase, sending or receiving of SHIBA INU, LEASH, BONE cryptocurrencies. Developers recommend using MetaMask. Available versions for PC, smartphone (with iOS, Android).
- Transfer to the ETH coin account. They can be bought through the functionality of the wallet or exchange, exchangers. When making a transaction, it is important to use the Ethereum network (ERC-20 standard).
- Go to the DEX website and click on the Connect wallet button . Choose the appropriate option.
- Account creation is automatic. A list of financial instruments will appear on the opened start page. You need to choose a SWAP exchanger.
- Set the swap pair: in the Swap From field - ETH, in the Swap To field - SHIB/LEASH/BONE. In addition to the native coins of the ecosystem, there are over 100 more tokens available. In the settings, you can set 2 additional parameters: “Slippage tolerance” (the operation will be canceled if the price deviates in the negative direction by more than the selected percentage) and “Deadline for the transaction” (the transaction is not executed if it has to wait more than the nth time).
Basic and additional tools available on DEX:
- Automatic SWAP market maker for coin exchange.
- Profitable farming WOOF.
- Staking BURY.
- Pools to provide liquidity DIG.
- FETCH Bridge. The service allows you to transfer coins of liquidity providers from SushiSwap, Uniswap cryptocurrency exchanges.
- Statistical service BONEFOLIO.
The system's native tokens operate on the Ethereum blockchain. This means that their speed is the same as on the main network. As of November 2021, Ethereum is still running on the Proof-of-Work (PoW) consensus algorithm and showing a speed of 13 transactions per second (TPS). At the same time, the daily load on the network is 1.355 million operations. This results in users being forced to pay high fees in gas.
But when the transition to Ethereum 2.0 is completed (the network will only work on PoS), the developers promise to increase the speed to 100,000 tx/s. This will be a very high performance that will allow DEX to conduct instant transactions with minimal gas fees.
Features of the cryptocurrency project:
- 100% decentralized. An anonymous startup creator has no weight or privileges.
- The ecosystem of the project is built on the basis of the Ethereum blockchain. Therefore, many technical characteristics of the launched services (speed of operations, size of commissions) depend on this network.
- 3 tokens were created: in addition to SHIB, there are also lesser-known LEASH, BONE. They are not stablecoins, their rate is highly volatile. So, in addition to the functionality provided by the developers, they can be used for investment and trading.
- The native token is one of the most popular meme-coins.
- The main factor influencing the rate is the statements and actions of well-known investors: Elon Musk, Vitalik Buterin. Because of this, many consider the coin to be a “dummy” that has grown on a wave of hype. Further investment in it is a huge risk.
- The project supports charitable initiatives and also accepts donations from investors.
SHIBA INU Cryptocurrency Technology
The main product created by the army of holders is its own decentralized exchange, which offered a variety of tools for passive income. A unique ecosystem based on 3 ERC-20 tokens was also launched. In addition, a monitoring service has been created. The BONEFOLIO system shows the statistics of all operations, data on the profit received from various sources within the DEX.
Issue of the coin
Initially, RYOSHI issued 1 quadrillion tokens (10 to the 15th power). But since 40% was destroyed by Vitalik Buterin, the total supply in November 2021 was 589,738,956,207,004 coins. The circulating quantity, according to CoinMarketCap, is 549,095,510,000,000 units.
The emission is limited, that is, the creation of new coins is not planned. This is one of the differences between the project and its main competitor Dogecoin.
The native tokens of the system do not have a classic reinforcement in the form of dollar or gold reserves. Because of this, their price is volatile, like most other cryptocurrencies. To prevent depreciation and create prerequisites for growth, the following mechanisms were introduced:
- Limited issue. Since the release of new crypto-units is impossible, as the popularity and interest in the token grows, the cost will also increase.
- Support for a fast growing and growing community.
- Increasing the utility of the coin.
In the review of the SHIBA INU crypto coin from the project team (WoofPaper), the following official purpose of native tokens was indicated:
- SHIB is the main unit of account that is needed for trading and storage.
- BONE is a token that is paid out as a reward. It is received for supplying liquidity to pools in proportion to the contribution. The second role is management. It acts as an analogue of the voice when making decisions about the work and development of the ecosystem (in the fall of 2021, this functionality is still under development).
- LEASH is an additional token that performs auxiliary tasks in farming pools.
Like other coins, these can be used by investors and traders.
How to get
You can become a holder and one of the SHIBArmy members in the following ways:
- Buy a digital asset on exchanges.
- Make a deal on ShibaSwap.
- Use third party services.
Native tokens, as of November 2021, have been listed on more than 70 trading platforms. Among them are all the top custodial exchanges: Binance, OKEx, Huobi Global. As ERC-20 tokens, they are traded on popular DEXs built on the Ethereum blockchain.
The recommended way is to trade through your own decentralized exchange. To conclude a deal, you need to go to the Swap section. Dozens of ERC-20 tokens can be used to purchase.
Using exchange services, you can buy coins for fiat currencies. Transfer of money from bank cards, electronic wallets, through payment systems is available. Another supported option: buying with popular cryptocurrencies (BTC, ETH, DOT). This method is less secure than transactions through exchanges, and the exchange rate is often less profitable.
Ways to earn money
One of the features of the project is a wide range of instruments for passive profit making through native DEX. You can also participate in programs from centralized exchanges, such as Saving. Holders have access to the classic ways of earning for most cryptocurrencies: investing and trading.
DIG liquidity pools
A way to make money on the internal DEX. Liquidity providers receive commissions from transactions conducted on the exchange, in proportion to their percentage in the pool. Profit can be spent after the withdrawal of all liquidity.
To start earning, you need to open the DIG section and click on the Add Liquidity button. In the list that opens, you need to select a pair of tokens and freeze them. The amount should be equal: 50% to 50%. You can create a new pair, if there is no suitable one, through the Create a Pair button.
Native coins can be frozen to keep the ecosystem functioning. To start staking, you need to go to the Bury section and select a coin. Rates for November 2021:
- SHIBA INU coin. APY: 357.01%.
- LEASH. APY: 534.31%.
- BONE. APY: 2481.54%.
- Staking holders use the BURY tool.
- Their coins are blocked and sent to the xSHIB, tBONE or xLEASH pool.
- Transaction rewards are added to the pool: 3 BONE mined per block + 0.3% of all transaction fees through the Ethereum network.
- You can take profits through the Woof section. After that, the funds received can also be involved in staking. That is, they will not automatically be involved in the passive mining process, as in many other networks.
A popular tool for passive income on the internal DEX. Profitable farming rewards the holder for providing liquidity by placing a specific pair of tokens in a pool. Popular options in autumn 2021:
- BONE-WETH. Total amount of funds blocked in the protocol (TVL): over $80 million Annual interest rate (APR): 213.6%.
- LEASH BONE. TVL: over $37 billion APR: 137.3%.
- LEASH-WETH. TVL: over $28 billion APR: 141.97%.
The project DEX has a special section with non-fungible tokens. Over 10,000 unique SHIBOSHIS are available to holders. They can be bought with the native coins of the system, and then stored and sold when the value increases, or traded and receive additional profit due to the price difference.
Centralized exchanges often create a tool with minimal risk - Saving. The profit is small, and the conditions are flexible. For example, the large centralized exchange OKEx offered just 0.11% annualized returns in November 2021.
The price of the coin has already shown impressive rate jumps:
- From April 10 to May 10, 2021, it increased by more than 43,000%: from $0.00000008 to $0.00003503.
- From October 1 to October 7, the price increased by 263%: from $0.000007699 to $0.00002797.
- The peak was reached on October 28, 2021 - $0.00008845. In total, since April 10, the rate has increased by 110,000%.
Some crypto experts believe that this is not the limit. And after the inevitable correction, the price will set a historical maximum more than once.
Holders of the main cryptocurrency of the ecosystem have access to spot trading on more than 70 exchanges. Given the high liquidity of tokens, 7 platforms also allow margin transactions: Huobi Global, KuCoin, OKEx and others. This option is suitable for experienced traders, as it is more risky.
Where to buy Shiba Inu cryptocurrency
Important selection criteria:
- Exchange reputation. You can filter scams among resellers using the BestChange monitoring site.
- Well. It differs even on different exchanges.
- Liquidity. This is especially true if you need to buy a large number of coins or make a quick deal.
- degree of anonymity. Many custodial exchanges require registration, identity verification. DEX or exchangers are more anonymous.
- Available tools. The list depends on whether the holder is going to then engage in trading, passive income.
What affects the rate of cryptocurrency
Situations that led to price spikes:
- Tesla CEO Elon Musk provided unwitting support. In March 2021, he tweeted that the billionaire was going to buy a Shiba Inu dog. For 5 days, the rate of the coin of the same name increased by 2,000%. But when Musk denied the information about his investment in October 2021, the price collapsed by 20%
- The increase in the price of Dogecoin in May 2021 provoked an increase in interest in other mem-cryptocurrencies. One of them is the Shiba Inu coin. According to The Block analyst Larry Cermak, 5 out of 10 top trading pairs on the largest Uniswap DEX during this period are meme tokens.
- In June 2021, Coinbase Pro announced the listing of the coin. This triggered a price jump of 20%.
- In September 2021, Coinbase added the coin. The rate rose by another 30%.
In addition, the price of a coin is affected by the same factors as other cryptocurrencies: changes in the BTC rate, market sentiment (bullish or bearish), launching new services, tools, and increasing the speed of transactions. The actions of financial regulators are also important.
Where to store SHIBA INU cryptocurrency
SHIBArmy in November 2021 has not yet released their own wallet and has not even voiced such plans. But to work in the ecosystem, they recommend using Metamask or WalletConnect, Coinbase.
The Future and Prospects of the Shiba Inu Cryptocurrency
One of the immediately announced features of the project is the absence of a governing body or CEO who would publish a roadmap. Although the original document mentions RuffMap, it only indicates the general direction of development:
- Integration of tokens/products into the global market.
- Development of own DEX.
- Creation and popularization of the market of its NFT-tokens.
In 2021-2023 SHIBArmy plans to complete the transition to decentralized management and provide holders with the functionality for transparent voting on all decisions to change and improve the ecosystem.
Analytics and forecasts
Popular opinions of investors regarding changes in the price of digital currency:
- WalletInvestor.com is convinced of stable growth. The profit of depositors with a 5-year investment will be more than 737.5%.
- GovCapital expects bullish growth even before the start of 2022. In 2026, the coin may trade at $0.00008967.
- Coin Price Forecast predicts a price of $0.000221 at the end of 2021, and $0.0002554 by mid-2022.
But not everyone is so optimistic. Former CIA officer Edward Snowden does not recommend investing in this cryptocurrency. He only calls it a clone of Dogecoin.