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You are here: Home / Cryptocurrency / What is SHIB, and What Do You Need to Know About This Meme Token?

What is SHIB, and What Do You Need to Know About This Meme Token?

May 25, 2022 by Elle Gellrich

There are many cryptocurrencies globally, and not everyone is as prominent as Bitcoin.

But, a meme token – Shiba Inu (SHIB), disrupted the industry with its meme origins, a vast ecosystem, and extreme price volatility.

This token suddenly reached astounding popularity amongst all the crypto investors due to its affiliation with Elon Musk, as he has tweeted about Shiba Inu many times. While Shiba Inu may not have the same functionality and prices as Bitcoin, it has disrupted the crypto world.

It became the most searched token in 2021, leaving behind the originals like Ethereum, Bitcoin, Ripple, and others.

In this article, you can learn about what is SHIB and what you need to know about this meme token. Read on to know.

SHIB is an alternate coin based on the Ethereum blockchain, and the coin has a Japanese dog breed of the same name as its logo. The whole theme of the SHIB ecosystem is based on the dog only. This currency was launched as a joke and a competitor of Dogecoin.

The token gained popularity in October 2021, when its value started growing exponentially.

 

  • 1. It is a token, not a coin
  • 2. Dogecoin killer
  • 3. Anonymous founder
  • 4. Multitoken system
  • 5. Supports decentralized finance products
  • 6. Elon Musk supports the currency
  • 7. Volatile currency
  • 8. Connection with Ethereum founder

1. It is a token, not a coin

There are two types of cryptocurrencies; coins and tokens. A currency can be deemed a coin if it operates on blockchain technology. On the other hand, a currency is a token based on other blockchains. In this case, the SHIB is a token based on the Ethereum blockchain.

2. Dogecoin killer

Shiba Inu directly challenged Dogecoin on its website, and the token was deemed a Dogecoin killer.

Earlier, many coins took a shot at becoming a direct competitor of Dogecoin, but no one came as close as Shiba Inu.

Currencies like Dogecoin and Bitcoin offer limited features, whereas Shiba Inu enables features like smart contractors making it a challenger against Dogecoin.

3. Anonymous founder

It is common for the founders of a currency to keep their identity private in the crypto world, as the world still does not know much about the founder of Bitcoin.

So like Bitcoin, the founder of SHIB is still unknown, and it could be an institution, group, or individual that created the Shiba Inu ecosystem.

4. Multitoken system

The SHIB ecosystem is home to two more tokens and various NFT projects. But, the Shiba Inu token is the most prominent out of all the things or projects under the ecosystem. The other two tokens also follow the same dog theme named Leash and Bone.

5. Supports decentralized finance products

Since the SHIB is based on the Ethereum blockchain, it supports smart contracts. These smart contracts can make autonomous organizations and many other projects.

Using smart contracts, users can stake their tokens and earn passive interest on their stake.

This makes the token utility-driven as well, unlike other meme tokens, as per the currency’s white papers; the whole ecosystem’s main objective is to provide a secure environment for the exchange of cryptocurrencies and other projects while being decentralized and empowering users.

6. Elon Musk supports the currency

For a long time now, the crypto market has followed the whims of Elon Musk. Tweets by Elon Musk have the potential to disrupt the stock industries and the crypto world. While he has scrutinized many crypto tokens earlier, Shiba Inu falls on his positive side, which is good for investors.

You will be surprised to know that the value of SHIB increased by more than 250% when he tweeted about adopting a Shiba Inu dog. This tweet caused the first major inclination for the token.

However, it is advised that you do your research before investing in any coin or token and do not rely on tweets as your buying or selling signals.

7. Volatile currency

While investing in cryptocurrencies, one has to be smart about it, as the currencies are volatile. The prices of currencies can fluctuate within seconds.

This is the same for Shiba Inu, and such meme tokens are still speculative assets. So, before investing, you must do your research.

When you choose a good platform to buy Shiba Inu, there will be plenty of learning resources to learn from.

8. Connection with Ethereum founder

Ethereum’s founder Vitalik Buterin received almost 50% of all the Shiba tokens as a form of appreciation from the founder of the token.

Buterin then donated 50 trillion Shiba tokens to India for COVID-19 relief. Soon after that, it was found that he was burning the majority of his Shiba wallet.

Burning refers to taking a cryptocurrency out of circulation for those who don’t know. It is good for the investors who plan to HODL the currency as it limits the supply, which automatically increases the value of their holdings.

So, what is SHIB? Now you know about it and some interesting things about the currency. Ensure that you do your research before investing in the token. Also, choose a platform with all the security measures to protect your investments from hackers and scammers.

Filed Under: Cryptocurrency, Investment, Knowledge, Trading

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