Ethereum’s smart contract functionality allows Shiba Inu users to provide liquidity with the networks’ trio of tokens and earn interest on their deposits. The creators of SHIB locked half of the token’s supply–500 trillion tokens to be exact–to Uniswap. The remaining half was sent to Ethereum co-founder Vitalik Buterin as an (unsolicited) gift.

  1. Another thing to know is that in their quest to ensure long-term sustainability and success, the SHIBA team has burned 40 percent of the total supply of their tokens.
  2. “We are an experiment in decentralized spontaneous community building,” wrote the project’s anonymous founder Ryoshi in the white paper.
  3. Thanks to its massive supply, a SHIB price of $0.01 would put its valuation, or market capitalization, at $10 trillion, close to that of gold.
  4. Shiba Inu runs on Ethereum, which means that it uses the Proof-of-Work mechanism of its parent blockchain platform.

In a blog entry, Ryoshi described themself as “just some guy of no consequence tapping at a keyboard.” Ryoshi also claims to own no SHIB tokens and that Shiba Inu is an experiment in decentralized community building. Investors are blowing on those dog whistles this week and crypto’s fave meme coins come running. As a ‘meme’ token, SHIB is also often driven both up and down by hype and social media traction. As with Dogecoin, SHIB can fluctuate wildly after being mentioned by crypto influencers like Elon Musk. However, these SHIB investors are a strong and significant community that has achieved a lot in a short time.

It cannot be denied that SHIB has been a good investment for many in the past, including the wallet that bought $8000 of it in August 2020 and saw its value appreciate into the billions the following year. One of the Shiba Inu community’s decisions has been to begin burning SHIB to achieve some level of scarcity. Plenty have been on board with this, and crypto record label, Bigger Entertainment, organized a SHIB burning party over Christmas 2021 that burned 239 million SHIB.

The BONE tokens are received as a reward for many services within the network and it also holds governance use, to allow the holders to voice their opinions on how the project should be run in the future. On May 13, 2021, Ethereum network founder Vitalik Buterin donated more than 50 trillion Shiba Tokens to the India COVID-Crypto Relief Fund that were originally donated to him by Shiba Inu developers. This project has led to an increase in gas fees due to the increased number of transactions on the Ethereum blockchain.

Timeline

If you are new to crypto, use the Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies. Kilo Shiba Inu’s price today is US$0.0135, with a 24-hour trading kshib price volume of $N/A. Referred to as Layer 2 solutions, they make transactions faster as well as cheaper. While many Ethereum-based Layer 2s exist, the Shiba Inu community also has its own, Shibarium, in development.

Shiba Inu

This fee is not set in stone as they depend on the network’s congestion at that moment in time. The ShibaSwap exchange has trading and withdrawal fees but they are on par with some other exchange platforms. The tokens however can be traded on some supported exchanges and all of them charge trading and a withdrawal fee which varies from one exchange to another and might not be the same for each token. The network’s native DEX is a good place to start, but know that some of the exchange options would require you to swap another crypto token for SHIB, while others will allow you to pay with fiat currency for them.

What is Shiba Inu?

The term ‘memecoin’ originates with Dogecoin, which is named after a famous meme of a Shiba Inu dog. The main risk with this distribution is the negative effect on price if one of these ‘whales’ were to divest themselves of their SHIB on the open market. Furthermore, and again similar to Dogecoin, SHIB’s decentralization in terms of wallet concentration is somewhat worrisome. Hot wallets tend to be a little easier to access and harder to lose since they tend to be on a frequently used computer or mobile device. They often take the form of a desktop client or browser extension, making them relatively easy to use.

The exchange platforms which support the token are also a place where you can cash them out, just know that some of these exchanges might not offer the option of cashing SHIB directly for fiat currency. In this case you will need to swap them for another crypto with better liquidity which can later easily be exchanged for USD, EUR or GBP. Upon its inception, half of all SHIB tokens to ever exist was liquidity locked to decentralized exchange Uniswap, while the other half was sent, or better said “burned,” to Ethereum co-founder Vitalik Buterin. Complete cryptocurrency market coverage with live coin prices, charts and crypto market cap featuring coins on 750 exchanges. These incentivize users by way of fees and reward tokens to deposit pairs of coins that others can use for trading, a common mechanism by which DEXes replace traditional order books. The developers of the Shiba Inu coin launched a decentralized autonomous organization (DAO) called Doggy DAO at the start of 2022.

About Kilo Shiba Inu

SHIB wasn’t created to solve any particular real-world problem, like Bitcoin, Litecoin, Ethereum, XRP, or indeed most of the top blockchain projects at least claim to do. Notably, the Shiba Inu community has been developing its own Layer 2 solution called Shibarium, with speculation that it would use BONE as its gas token. SHIB does not have its own blockchain and therefore relies on Ethereum for its security since it is an ERC-20 token. Ethereum’s Ethash algorithm and vast network of miners provide ample safety to SHIB. However, Shiba Inu continued to reside in the public eye and its success saw plenty of stories being written.

Like that of Dogecoin, Shiba Inu’s community is also involved in philanthropy. Notably, Shiba’s use of jargon (bury instead of stake) gamifies the process and makes a lot of DeFi concepts a little easier to process for many users. Many suggest this is an attempt to emulate the decision made by Bitcoin’s founder, Satoshi Nakomoto, to remain pseudonymous. Stating that he didn’t wish to be “a locus of power”, Buterin burned 90% of his SHIB and donated the rest to charity, including over 50 trillion SHIB to a COVID-19 relief fund.

Movements have their own value, and this sense of community, itself, offers an investment thesis to many. As an ERC-20 token on Ethereum, Shiba Inu doesn’t have its own blockchain and therefore doesn’t really have any notable energy consumption factor on its own. However, the community’s burn rate has been accelerating, with close to 2.5 billion SHIB burned over one week in late May 2022, according to SHIB burning tracker Shibburn.

Furthermore, Ryoshi wrote that the ecosystem would develop further to include an algorithmic stablecoin to serve as a global exchange of value. SHIB was launched as an ERC-20 token on Ethereum in an attempt to further differentiate from Dogecoin, which is mined using the Scrypt algorithm. Half of its supply was since locked as liquidity to Uniswap, but as already mentioned, the other half was sent to Vitalik Buterin.

Thanks to its massive supply, a SHIB price of $0.01 would put its valuation, or market capitalization, at $10 trillion, close to that of gold. You can purchase Shiba Inu on many major exchanges, given its status as a consistent top 20 coin and the massive community behind it. It can also be purchased on the ShibaSwap https://cryptolisting.org/ DEX and other decentralized exchanges on the Ethereum network. Following the launch of the ShibaSwap decentralized exchange (DEX) in July 2021, holders could stake (or ‘bury’, according to them) SHIB to receive xSHIB. LEASH stakers receive xLEASH, and BONE stakers, quite naturally, receive tBONE tokens.

As you might have known, the token has had a great leap in value, earlier this year due to the popularity of Dogecoin and its ties with it. However, after that great leap, the value of the project is on the decline since it is hard for some experts to recognize what the value of the project is connected to moving forward. The main thing the team behind the project needs to focus on is to find new use cases for its tokens and find healthy partnerships moving forward. With all that being said, remember that the crypto world can be extremely volatile so it is no large surprise that experts are divided on the future of the platform. If you want to invest in eCash, make sure you only invest an amount you are willing to risk.