Shiba Inu is the newest meme coin to gain traction, but many people are curious about how it works and what makes it unique. Learn all there is to know about the SHIB token.
In the beginning, Shiba Inu was just a joke coin for the people in the community. However, it has grown into a multi-billion dollar business that would likely be called speculative.
However, because our website ( cryptocurrencysimple.com ) focuses on delivering facts and ideas free of prejudice and rumour, we will try to leave our opinions out of it as much as possible! And let you decide based on as much real, factual, and complete information as possible in this article.
Welcome to our website, cryptocurrencysimple. We make crypto simple. This article will discuss what Shiba Inu is, why it’s been expanding at such a rapid rate, and what it’ll take to get to a penny’s worth of value.
Shiba Inu Token vs. Shiba Inu Coin
First and foremost, let’s clarify the distinction between a coin and a token. I’m going to presume you’re familiar with the concept of a blockchain, and you should be aware that there are several blockchains available. One is Ethereum, another is Binance Smart Chain, another is Polygon, and even Dogecoin has a blockchain!
Each blockchain has its own coin, where the Ethereum, BNB, Matic, and other coins come from. However, on some of these blockchains, you may create tokens that aren’t coins since they don’t contribute to the blockchain’s operation, but they function like currencies and are referred to as tokens.
They use the main blockchain’s power, security, and upkeep to avoid focusing on their blockchain, and they act as the main coin, but they aren’t. For example, Shiba Inu is a token on the Ethereum network, which means it doesn’t have its blockchain and instead relies on Ethereum to function.
This indicates that a Shiba Inu Coin does not exist… It’s a Shiba Inu Token, technically. I’ve noticed a lot of uncertainty among beginners concerning this, so I wanted to clarify it out. $SHIB is a token based on the Ethereum network, whereas Dogecoin is a standalone blockchain.
Now that we’ve cleared things up let’s look into why Shiba is known as the Dogecoin Killer.
Now, what’s Dogecoin, and how does it work?
Dogecoin is a joke coin that was created to mock Bitcoin and demonstrate that anybody could imitate it with a few tweaks. It has gained traction in recent years, and its popularity has skyrocketed in the last year.
However, Dogecoin does not have the neat enhancements that Ethereum does, such as Smart Contracts, because it is its blockchain and is essentially a duplicate of Bitcoin. On the blockchain network, smart contracts allow participants to do much more than merely transmit money back and forth.
Smart contracts, for example, allow users to generate new tokens… something you can do with Bitcoin or Dogecoin. Users may also utilize smart contracts to develop apps, such as decentralized exchanges, to trade their tokens. We’ve already gotten off track, so if you’re interested in learning more about DeFi, Smart Contracts, and how decentralized apps function, view some of our other films; I guarantee the algorithm will feed you more once you’ve seen a few.
Anyway, because Shiba Inu Token is based on smart contracts, you can do things that you can’t do with Dogecoin, such as lend it out or let others trade with it while you get fees. This is why they call themselves the Dogecoin assassins.
How is Elon musk Included in Dogecoin & Shiba Inu?
How did they get started in the first place? In August 2020, a pseudonymous developer named Ryoshi launched the project as a community governance experiment or a test of how a community may make decisions.
Ryoshi was assisted in setting up the smart contract token by an anonymous acquaintance, who also put ten ethereum in an ethereum and SHIB pair on uniswap. This meant that people might donate Ethereum to Uniswap in exchange for SHIB.
Elon Musk tweeted about purchasing a Shiba Inu puppy in mid-March 2021, causing the price to skyrocket by 300 percent.
Vitalik Buterin owns Shiba Inu?
Shiba Inu developers did something intriguing by giving Vitalik Buterin, the creator of Ethereum, 12 percent of all Shib tokens. They knew his wallet address and sent him a slew of SHIB tokens; many speculate that this is for marketing purposes, with the message being “hey, look, Vitalik owns some of our tokens, which implies he believes in it!” Vitalik sold some of the SHIB tokens and donated the proceeds to charity.
He burnt the rest, around 90% of what he was given. When a specific person sends their tokens to a wallet that no one else has access to, they are referred to as “burning a token.” Vitalik burned SHIB coins worth $6.7 billion.
Because SHIB is an ethereum token, one of the unique things we can do is reward holders for performing particular things with it. Shibaswap, for example, offers prizes to customers who supply liquidity to certain Shiba Inu couples.
“DIGGING” is the call that provides liquidity. When you offer traders your tokens to use, Uniswap has to offer you something in return to verify that you own the liquidity pool. These tokens are known as Liquidity Pool Tokens. Shibaswap compensates users that lock up their Liquidity Pool tokens, ensuring that liquidity will be available for a long time.
You can technically withdraw your locked tokens at any moment. Well, I’m not sure why they don’t credit ALL liquidity providers; perhaps you can offer a solution in the comments section. This is referred to as “BURYING” when you stake or lock up your liquidity provider tokens.
You start earning Bones when you Bury your LP tokens. Bones are an Ethereum token that serves as Shibaswap’s governance token. This implies that you have one vote on project modifications if you own one bone.
Most individuals earn and sell them, while some people purchase and keep them. Of course, you may also bury and stake these bones, but it is beyond the scope of this movie. Have you noticed what I did there? The fact is that they are initially inflationary, which means that every economics student understands what this implies for the price: it is decreasing. This isn’t, however, financial advice! Of course.
I’ll tell you a little secret about supplying liquidity. If you start a project and the price of your coin skyrockets, and you still have part of the project’s currency, you could say to yourself, “Wow, we could cash out.” The issue is that if liquidity is limited, trading your tokens using Uniswap will cause the price to fall.
Unless you can persuade other individuals to offer liquidity, the price of your tokens will not drop as much when you dump a number of them, allowing you to sell more tokens at a greater price.
NFTs with a SHIB?
1) Explanation of Market Capitalization
Let’s take a look at those films that ask, “What if SHIB drops to one cent?” or, even more daringly, “What if SHIB drops to one dollar?” I’m not here to claim it won’t happen; rather, I’m here to explain what would be required for it to happen. To begin, MarketCap is a word used to compare cryptocurrency assets and is most commonly used to define each coin’s average price.
For example, the Shiba Inu coin is now valued at around 0.00005000 and has a market capitalization of 21 billion dollars. If the price drops to one penny, the overall market capitalization would be $4 trillion, more than the total value of all cryptocurrencies, including Bitcoin.
If it all gets to $1, that’s 400 trillion dollars, which is greater than the value of all the houses in the United States combined. Again, I’m not claiming that this is impossible, but I’ll present the evidence and let you make your own decision.
2) When ATHs occur, everyone benefits.
The second topic I’d want to discuss is All-Time Highs, which SHIB has reached a lot lately. Did you know that when a coin or token reaches a new all-time high, everyone who owns it makes a profit? Assume: you’re presuming everyone out there is willing to hang on to their profitable asset, even those who are likely in desperate need of cash right now to pay their expenses.
Anyway, hitting all-time highs as often as SHIB has is difficult, so make sure you’re investing for a legitimate reason, since I have people who have purchased only because they believe the price would rise. Too many people are attempting to gain money without generating value, which normally leads to a large crash, but I’m not predicting that this will happen; I’m only describing what has happened in the past.
3) Psychology ranging from.01 to.02
The last point I wanted to take with you is that many developers will create a large number of tokens so that the price is low, even if there is a lot of money involved. For example, Shib has a value of 21 billion dollars, yet it’s still fractions of a penny.
Don’t be misled by these gimmicks; changing a % from.01 to.02 is just as tough as changing a percentage from 100 to 200, even if your brain believes it’s harder and takes up more space since the numbers are larger.
Shiba Inu is unlikely ever to reach $1, but if it does, we can be sure it would make the headlines, as it would have a larger market valuation than Tesla, which recently reached $1 trillion! Sounds interesting, right?
I hope you loved our explanation of Shiba Inu and its Fundamentals! I will post much much more on Shiba Inu Coin to get your mind more clear on this huge meme coin trend going around. Well, until then, See you in the next article only at cryptocurrencysimple.com, where we make crypto simple!