Shiba Inu (SHIB) has become one of the most popular meme coins, next to Dogecoin and SafeMoon in 2021. It’s a relatively new cryptocurrency, that managed to grow from nothing to a now over $3.7B market cap. They describe themselves as a decentralized meme token that grew into a vibrant ecosystem.
Shiba Inu (SHIB) also describes themselves as the Dogecoin Killer. DogeCoin is another meme coin that grew significantly in 2021, has been around for years, and even receives frequent support from Elon Musk. So, calling yourself the Dogecoin killer is a significant claim. So, how is Shiba Inu (SHIB) different from Doge?
Shiba Inu is an experiment, powered by a decentralized community from all over the world. It’s used through the ecosystem about which you’ll learn more on this page.
50% of all SHIB tokens are locked on Uniswap, and 50% of all SHIB tokens were sent to Vitalik Buterin to ‘burn’ them and take them out of supply forever. What’s funny is that Vitalik seemed to have disagreed with that decision, as he donated over $60M worth of SHIB to charity. In this session, he sold 660B SHIB, 140B AKIKTA and 43M ELON tokens and removed 13.2k wrapped ETH in liquidity from Uniswap. The results were interesting, as all three projects saw significant price drops right after and the move caused a lot of discussions in the cryptocurrency industry.
The money was sent to Crypto Covid, a relief fund in India, some money was sent to Ethereum-focused grant programs on Gitcoin, and 500 ETH to Charter Cities.
Shiba Inu is more than just the project that donated 50% of its supply to Vitalik though.
Shiba Inu published their so called ‘WoofPaper’, which is their white paper and displays their goals. As well as some background information, which also displays their values.
The team makes it clear they value decentralization, and state to have started from zero, creating a revolutionary project from nothing, through the power of their community.
The project was built from scratch, meaning it wasn’t forked from an existing community or project, and was built by a team of like-minded individuals who surely know how to market something and go viral. Or was it luck?
Shiba Inu was built upon the Ethereum Network, as it’s the most establish network around that supports smart contracts and is (arguably) one of the most decentralized networks around. This is also the reason why they chose to donate SHIB coins to Vitalik.
Their vision is clear, they’re dedicated to building the best decentralized ecosystem (DECO) around. Powered by their three tokens: Shiba Inu (SHIB), Leash Dogecoin Killer (LEASH) and Bone (BONE). BONE is not yet released.
The team is focused on building ShibaSwap, a decentralized exchange on which SHIB will be the first token to list. ShibaSwap is currently ongoing security tests, audits and no specific date for launch has been communicated yet.
It’s currently not known who’s behind the project, and we will likely never know if the team truly values decentralization. There’s also no specific roadmap, in their white paper it is stated they’re keeping this a secret.
As soon as the ShibaSwap decentralized exchange launches, SHIB holders will be able to stake their tokens to earn rewards. When staking, users receive xSHIB in return – for staking LEASH this would be xLEASH and for BONE tBONE.
What’s noteworthy is there’s currently over 500,000 SHIB token holders (526,112) and close to 2M total transactions. These are massive numbers not often seen before, achieved by traders / speculators.
Those who follow our social channels and joined our Telegram channel know our opinion about meme coins and hype coins. Personally, I (Marco) don’t see value in them as there’s no actual product behind it.
Even though Shiba Inu is building a decentralized exchange, it’s on the Ethereum Network. Meaning that fees are still paid for in ETH and not SHIB. Meaning that I realistically don’t see any true utility for the token. Staking alone isn’t enough to sustain long-term and ultimately there’s going to be people that burn their fingers on these meme coins, unless there’s actual major ecosystems build around them that are fully powered by the token and see (mass) adoption. That said, I’d recommend to focus on fundamentally strong projects.
SHIB saw massive traction and interest from speculators, and was timed perfectly in a period of bullish markets and hype around meme coins. Now that we’re back to reality, it’s going to be interesting whether the team delivers and whether the decentralized exchange sees significant traction.
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