Shiba Inu (SHIB), also known colloquially as Shiba Token, is a decentralized cryptocurrency founded in August 2020 by an anonymous individual or individuals known as “Ryoshi.” In this regard it is similar in it’s foundation to Bitcoin, created by an anonymous individual or group known as “Satoshi”.
One of the greatest crypto stories of 2021 was the rise of Dogecoin (DOGE), which grew from a meme-based joke to a cultural icon with a market valuation in the tens of billions of dollars thanks to a devoted online community (and admirers including Elon Musk and Mark Cuban).
Shiba Inu enjoys an even more powerful, and dare we say rabid fan base, that has pushed the token to the 19th spot in market cap with a valuation of $11B-ahead of such projects as Polygon, Algorand and Filecoin.
Shiba Inu is powered by Ethereum
Dogecoin, like Bitcoin and Ethereum, operates on its own blockchain, limiting its ability to interact with other protocols. The creators of the DOGE-inspired Shiba Inu token (or SHIB) saw potential in that constraint, and introduced a new dog-themed meme coin that runs on the Ethereum blockchain in August 2020.
SHIB: Compatible with the Ethereum Network
Because it is issued as an Ethereum token, SHIB has real-world application. Advantages include compatibility with Ethereum wallets such as Coinbase Wallet or Metamask, availability on decentralized exchanges (or DEXs) including UniSwap, and the possibility of incorporating SHIB into ETH-based DeFi applications such as lending and savings products and NFT marketplaces.
Shiba Inu (SHIB) was created by whom?
SHIB was launched in August 2020 by an anonymous developer named Ryoshi. The project started with a total supply of one quadrillion tokens, which is a truly massive number.
To put that number in perspective: 13.75 billion (age of the universe) x 365.25 (days in a year) = 5.022 trillion days. This number pales in comparison with one quadrillion. Let’s just say SHIB has a lot of tokens floating around.
What is the current value of SHIB?
Check the current price of SHIB (and read the latest headlines about the token).
How did SHIB become popular?
Ryoshi distributed half of the token supply to Ethereum co-creator Vitalik Buterin’s wallet and used the other half to create liquidity on Uniswap’s trading platform. From there, the tokens began to circulate more widely.
Why did Ryoshi gift VB half of all SHIB?
- Ryoshi hoped that having a major holder with the most credibility in the crypto community would be advantageous to the project. “There is no greatness without a vulnerable point,” Ryoshi said at the time, “and as long as VB doesn’t rug us [or dump his supply, tanking values], SHIBA will grow and survive.”
- When the value of SHIB began to moonshot during the meme coin craze of summer 2020, Vitalik started to liquidate part of his gifted coins by donating $1 billion in Shiba Inu to the India Covid Crypto Relief Fund
- The donation made international headlines, significantly raising SHIB’s profile. Following the donation, perhaps as a gesture of goodwill to the SHIB community, Vitalik “burned” another 410 trillion SHIB tokens (40 percent of the total supply), removing them from circulation forever
What distinguishes SHIB from DOGE?
SHIB, unlike DOGE, is compatible with the Ethereum ecosystem, allowing the community to develop crypto apps such as ShibaSwap, a DEX that allows users to trade and stake tokens without the use of a middleman.
Final thoughts
The Shiba community has released an NFT platform and DAO-based governance system for the Shiba ecosystem (dubbed “DoggyDAO”) recently. However, only time will tell if these and other proposed projects and limited-edition coins will boost SHIB to the near 1 cent range that investors are hoping for.
SHIB is currently trading at $0.00002781.
If you enjoyed this article, you might also like following articles: Can SHIB Make You Rich or What Is Meme Coin?
Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.
