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Altcoin Review | Memecoins

What Is Shiba Inu (SHIB)? All You Need To Know

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9 mins
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Jonathan Gibson

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Reading time

9 mins
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Shiba Inu (SHIB)

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Key Takeaways:

  • Shiba Inu (SHIB) is a meme coin developed in 2020 to compete with Dogecoin (DOGE).
  • SHIB’s low price point makes it accessible to a wider range of investors than other cryptocurrencies.
  • The meme coin market is highly competitive, with new projects emerging frequently. SHIB’s long-term success will depend on its ability to differentiate itself and maintain community engagement.

Shiba Inu (SHIB) is a meme coin developed in 2020 to compete with Dogecoin (DOGE).

This article will help you understand and gain more knowledge about Shina Inu (SHIB), its history, and how it operates in the constantly changing landscape of digital currencies.

What Is Shiba Inu (SHIB)?

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Shiba Inu is currently one of the top 20 largest cryptocurrencies in the world. It was created as an Ethereum-based digital asset that became a clear competitor to Dogecoin (DOGE). This digital currency is also known as the “Dogecoin Killer,” as it shares many of its features and goals.

The founder of Shiba Inu, Ryoshi, said that they were ready to overtake the value of Dogecoin. This is what happened in the market in 2021. Shiba Inu exceeded DOGE in 2021 and became a top-10 digital asset.

This coin also features a Shiba Inu dog, which is similar to what Dogecoin has already done in the past. Let’s not forget that Dogecoin was released as a meme coin with the logo of a Shiba Inu dog.

Shiba Inu is also considered a clear alternative to Dogecoin. It was created in August 2020 and is also used as a meme coin. Another thing that you should know about Shiba Inu is that this virtual currency became popular thanks to the fact that the founder of Tesla, Elon Musk, published a picture of his Shiba Inu puppy, Floki.

Shiba Inu’s official website claims that they became a decentralized meme token that evolved into a vibrant ecosystem.

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The Shiba Inu ecosystem also relies on two other virtual currencies besides SHIB. These coins are called LEASH and BONE.

An important thing to mention about Shiba Inu is the way in which this virtual currency was created. The founder of this digital asset locked 50% of the total supply of tokens in Uniswap, and the other half was then sent to Vitalik Buterin’s wallet address. Buterin then decided to sell some of the coins and make the largest crypto donation in history to fight COVID-19 in India.

How Does Shiba Inu (SHIB) Work?

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Shiba Inu (SHIB) operates on the Ethereum blockchain, which leverages the same underlying technology that powers Ethereum’s smart contracts and decentralized applications.

Here’s a simplified breakdown of how SHIB works:

  • Decentralized Exchange (ShibaSwap): ShibaSwap is a decentralized exchange (DEX) developed for SHIB, BONE, LEASH, Wrapped Ethereum (WETH), and USDT. A centralized exchange setting is not required, as the users can swap tokens directly without depending upon any third-party intermediaries.
  • Community Governance: Although SHIB is characterized by decentralization, its community significantly contributes to its growth and the changes that will come into the project. It is the holders of SHIB who propose and vote for changes and upgrades of the current features or the introduction of new ones.
  • Expansion of Utility: The SHIB team is progressively working on several initiatives for the SHIB utility to go beyond just being a trading asset. There are the following to mention:
  • Shiba Inu Metaverse: A 3D world where the holders of SHIB can socialize with each other, play activities, and even own land on the virtual 3D platform.
  • Shiba Inu Games: A collection of medium games with paid versions that introduce blockchain technology by adopting SHIB as a reward system for the players.
  • Burning Mechanism: A defined percentage of SHIB tokens is regularly ‘burned’ (removed from circulation) to decrease the total supply and perhaps raise the prices of the leftover tokens.
  • Wallets: SHIB can be stored in multiple crypto wallets, such as MetaMask or Trust Wallet, which keep its users safe with access to their funds.

Essentially, SHIB functions as a digital asset built on the Ethereum blockchain. Its focus is on community involvement, decentralized governance, and expanding its utility through various projects.

Shiba Inu (SHIB) Tokenomics

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Like many other cryptocurrencies, Shiba Inu’s tokenomics are also focused on mass adoption and easy participation by many. The total supply of SHIB is a whopping 589.7 trillion tokens, which were first allocated to some early buyers before they started circulating little by little.

For many years to come, they will be supplied with a considerable issuance schedule that, combined with burnings—that take tokens out of circulation from time to time—aims to upkeep supply and demand and create conditions for the asset price to increase.

Besides, SHIB economics invites people to participate in governance and gets them rewards in the trade using ShibaSwap, one of the projects within the ecosystem. These elements, such as very heavy supply, burn strategy, and community processes, combine to create the interesting tokenomics that SHIB recreates.

Where Can I Buy Shiba Inu (SHIB)?

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It is now time to see where we can buy Shiba Inu in the cryptocurrency market. The first thing you need to know is that you can buy SHIB in many cryptocurrency exchanges. Some of these platforms include Binance, Coinbase, HitBTC, MEXC Global, Huobi Global, OKEX, KuCoin, Bitfinex, Kraken, and many others.

One important thing to know before deciding to buy a Shiba Inu is to make sure that the exchange we want to use is available in our country. Creating an account and depositing funds in a cryptocurrency exchange that does not operate in our jurisdiction could be a big mistake.

If you have selected the cryptocurrency exchange to buy Shiba Inu, you should consider whether they accept fiat payments, the trading pairs that they are currently offering, and the liquidity for this specific virtual currency. 

Binance is a clear leader in terms of Shiba Inu’s trading volume. This cryptocurrency exchange does not only support fiat payment methods but also has different trading pairs. You can buy Shiba Inu on Binance using SHIB/USDT, SHIB/BUSD, SHIB/TRY, SHIB/EUR, SHIB/DOGE, SHIB/BRL and SHIB/AUD. Currently, Binance handles over 36% of the total trading volume for SHIB worldwide.

The trading pair with the largest trading volume is SHIB/USDT, with 25% of all SHIB trading volume. That’s definitely surprising.

Coinbase, instead, decided to take a more conservative approach to SHIB. They only offer two trading pairs: SHIB/USD and SHIB/USDT. These two trading pairs represent 9.35% of the trading volume of Shiba Inu worldwide.

OKEx and Huobi Global also have a large trading volume for Shiba Inu. Indeed, they handle 10.5% of SHIB’s trading volume. That’s very important as these two exchanges have a larger combined trading volume than Coinbase, one of the oldest cryptocurrency exchanges in the world.

How To Buy Shiba Inu (SHIB)?

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If you have already decided to open a cryptocurrency account, you should know how to buy Shiba Inu (SHIB) on different cryptocurrency exchanges.

STEP 1 – Select A Crypto Exchange

The first step requires you to create a cryptocurrency exchange account. This can be done in just a few minutes, depending on the platform that you decide to use. Most crypto exchanges have a standard process for creating an account before you start trading or buying virtual currencies. 

You will have to share an email account, select a password, and set up the 2FA. Moreover, some crypto exchanges require you to authenticate your identity through an ID picture and a possible selfie. This happens in most crypto exchanges around the world, and it is a standard process for investors who want to trade larger amounts of money. 

STEP 2 – Deposit Funds

When it comes to depositing funds, crypto exchanges already support several payment methods. For example, you could deposit fiat currencies using debit or credit cards. In some cases, you could even deposit funds using a bank transfer. However, the best option is to do so with debit or credit cards, as it would be the fastest option.

Some crypto exchanges could support some other third-party payment processors. It is up to you to decide how you deposit funds to buy Shiba Inu.

STEP 3 – Buy SHIB

The last step would require you to buy SHIB with the funds that you have deposited. Whether you have deposited €1,000 or €50, the process will look very similar. You must search the exchange section and select a trading pair, such as SHIB/EUR. Once you have done that, you must decide whether you want to buy it at market rates or create a limit order that will be fulfilled as soon as the price reaches a certain level.

How To Store Shiba Inu (SHIB)?

You should know that crypto exchanges are not the best option for long-term holders to keep their virtual currencies. The reason behind that is that crypto exchanges could get hacked. This has happened many times in the past, and it affected thousands of crypto users.

Hence, the best way to store Shiba Inu is by using a software wallet or a hardware wallet. Software wallets would let you handle your SHIB coins quickly and easily. You can download any software wallet that supports Shiba Inu to your smartphone or desktop computer.

This would let you own your private keys and handle your coins as you decide. Software wallets give you control over your coins. That means that you should be very careful about how you handle your digital currencies. If your computer or smartphone gets attacked by a hacker or a virus, then your coins could be at risk.

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Another possibility is to use a hardware wallet. Hardware wallets are physical devices that give you control over your funds at all times and let you avoid possible attacks from third parties. This is possible because the private keys of your wallet will be held offline. Long-term holders or users who hold large amounts of SHIB should definitely consider getting a hardware wallet.

Tangem has created limited-edition Shiba Inu-branded hardware wallets, which offer the highest level of security for storing SHIB and other cryptocurrencies.

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If you plan to order this hardware wallet, use the discount code “EPUV7K” and get 10% off during checkout!

Shiba Inu (SHIB) Versus Dogecoin (DOGE)

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Shiba Inu and Dogecoin have many similarities but also differences. Both cryptocurrencies were created as meme coins and have attracted large and very active communities. Nowadays, both Dogecoin and Shiba Inu are clear competitors. 

Both cryptocurrencies have a Shiba Inu dog as their official logo. Although the colours and layout of each logo are different, they both have a dog that works as a meme. Moreover, these digital currencies have very engaged communities that link their virtual currencies to memes on a regular basis.

Shiba Inu and Dogecoin both have very large total supplies. However, Dogecoin has no limit on the total supply of DOGE that would ever be created. Instead, Shiba Inu has a clear and defined total supply of coins that would ever be created. 

Both cryptocurrencies used to be below $0.01. However, Dogecoin grew and is now traded above $0.10. None of these virtual currencies has reached $1 yet. Another difference between these two cryptocurrencies is that Shiba Inu relies on the Ethereum blockchain, while Dogecoin has its own blockchain network that has been created as a hard fork to Litecoin (LTC).

Is Shiba Inu (SHIB) A Good Investment?

Given the nature of cryptocurrencies, investing in Shiba Inu (SHIB) is highly speculative and volatile. SHIB was established as a meme coin with an extremely high supply, which limits its growth and, more importantly, price appreciation. Social media has seen enormous peaks from such unusual endorsements, but it is accustomed to a limited variety and odd romanticism. 

In the long run, we are unsure what would be most practical and useful in a token with an unclear utilitarian edge over similar things on the market. Investors should be cautious with SHIB, viewing it as a hopeless investment with high risk and thus adjusting their portfolio accordingly.

Final Thoughts

Shiba Inu (SHIB), originally a meme coin, has evolved into a thriving ecosystem that includes DeFi initiatives, a decentralized exchange (ShibaSwap), and the creation of its own Layer-2 blockchain, Shibarium.

Shiba Inu began as merely another coin designed to compete with Dogecoin, but it has developed over time by expanding its use and attracting a significant following.

Jonathan Gibson

About the Author

Jonathan is an experienced editor-in-chief and crypto writer, with over seven years in the field. His work focuses on in-depth research and clear, informative reporting on cryptocurrency topics, positioning him as a knowledgeable figure in the industry.