Not many crypto assets have it in them to beat Bitcoin in any segment. However, there was one to achieve the unattainable – Shiba INU. Shiba Inu was the most popular crypto in 2021, with 43 million more views than Bitcoin. We can say that Shiba Inu ‘barked’ the most in 2021, becoming the alpha among the dog theme cryptos.
If you still don’t know Shiba Inu, it is an Ethereum-based altcoin or meme coin that features the Japanese dog breed Shiba Inu as its mascot. Shiba Inu became a household name in 2021, with its price soaring more than tenfold in October 2021. As SHIB grew in popularity and market capitalization, more crypto exchanges began to accept it for listing.
So, what is so special about this young pup that it beat pioneers like Bitcoin in terms of viewership? How did Shiba Inu get here?
Shiba Inu was launched as a direct competitor of Dogecoin as a joke. Both Shiba Inu and Dogecoin come under the category of meme coin. The meme coin originated from a 2013 meme featuring the Japanese breed dog of the same name. What began as a community-driven token representing a meme grew into a multi-billion dollar crypto project.
Shiba Inu is a token, not a coin
What differentiates a token from a coin is that coins have their own blockchains, while tokens are created on top of existing blockchains. In the case of Shiba Inu, it doesn’t have its own blockchain.
Instead, it is a token built on the Ethereum-blockchain. Popular cryptocurrencies like DOGE and BTC have their own blockchains, and thus they are called coins.
Shiba Inu’s official website listed SHIB as a Dogecoin killer for a long time. Shia Inu, along with Floki Inu, Doge Dash, and Dogelon Mars, uses the same dog-themed branding as Dogecoin, but Shib is the only one to challenge Dogecoin so far.
Since its inception, Shiba Inu has been nipping at the heels of its competitor, Dogecoin. As Dogecoin is similar to Bitcoin, it is still limited in on-chain features such as smart contracts. SHIB is an Ethereum-based token with smart contract capabilities, making it a Dogecoin competitor/killer.
The world still doesn’t know who Satoshi Nakamoto is other than the fact that he is the creator of Bitcoin. So, like Bitcoin, Shiba Inu was created anonymously under the pseudonym Ryoshi. Similarly, the world doesn’t know the brains behind this ecosystem. For all we know, Ryoshi could be an individual or a group.
The Shiba Inu ecosystem consists of three tokens: Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE). The SHIB token is the most prominent component of the Shiba Inu ecosystem.
Supports specific Defi products
Shiba Inu supports smart contracts, allowing users to lend and stake them, earning passive income in the form of recurring fees.
If a cryptocurrency has the support of Elon Musk, it is like getting the certified blue tick. Elon Musk and his tweets have a massive potential of making or breaking a cryptocurrency.Shiba Inu is fortunately on Elon Musk’s positive tweets. He even tweeted about getting a Shiba Inu dog, which gave the first major push to the SHIB token, driving it up by close to 300%.
Credible exchanges like CoinSwitch Kuber urge you not to blindly trust excitable tweets and Do-Your-Own-Research while choosing crypto assets like SHIB and more.
Despite popular belief that a meme coin like SHIB is solely driven by hype and sentiment, the ecosystem actually supports a number of useful utilities, including NFTs and a Defi-platform in ShibaSwap. ShibaSwap’s mission is to provide a secure environment for cryptocurrency trading while remaining decentralized.
Fact Check: Shiba Inu is currently working on its Layer-2 protocol or Shibarium to add other utilities and lower the existing transaction fees.
Investing in cryptocurrencies is risky due to the volatile nature of the market and also the lack of regulation. And altcoins or meme coins present an additional challenge. Even exchanges that list meme coins list them with a hint of caution. This brings to the fact that despite the useful use cases, the near-550 trillion total supply, and a market cap well above $19 billion, Shiba Inu remains a speculative crypto asset, though with a deflationary lineage.
Therefore, DYOR before trading or investing in this high-risk asset.
The Vitalik connection
We don’t know for sure whether it was sent for safekeeping or as a marketing vigil. Buterin donated the cumulative value of more than 50 trillion Shiba Inu coins to a COVID-19 relief fund in India. Shortly after that, Buterin “burned”—or permanently removed from circulation 90% of the remaining supply by sending it over to an inaccessible wallet.
With the year that Shiba Inu had in 2021, we could go on and on about this token’s technical and use-case-specific aspects. But keeping in mind that Shiba Inu is comparatively new, these are the ten pointers that you need to be aware of to understand risks, rewards, and everything else of relevance.
Coming to SHIB, it is still a volatile crypto asset and requires a proper understanding of the meme coins, risk analysis, and other pointers for you to proceed.