In 2021, cryptocurrencies are experiencing explosive growth, especially altcoins. Even a single tweet from a famous person can prop up a coin or token by thousands of percent. The new cryptocurrency Shiba is no exception. Let's understand what Shiba Inu is, how it's structured and what its prospects are.
Shiba Inu - coin or token?
The Shiba Inu coin is designed as an experiment in decentralized spontaneous community building. SHIB's issuance is so large that even with a capitalization of trillions of dollars, its value is unlikely to exceed a penny. Users can store millions, billions, or even trillions of SHIBs in their wallets. SHIB has been nicknamed «the Dogecoin killer» which is known to have been created for a joke.
A fun fact: the Dogecoin joke went too far, and the cryptocurrency DOGE recently ranked 4th by capitalization in the CoinMarketCap list. The Wall Street Bets (WSB) situation that got out of hand and tweets of Ilon Musk, who named the satellite DOGE-1, and its flight in 2022 will be paid with DOGE coins, contributed to such a rapid growth.
Since Shiba Inu is created on the Ethereum blockchain, one might conclude that Shiba is an ERC-20 token, not a cryptocurrency. And this is its main difference from Dogecoin.
Note. Even the developers' official website is called Shiba Token.
Technical description
Shiba Inu is a cryptocurrency created in 2020 in the crypto boom wave. SHIB has an issue of 1 quadrillion tokens. When creating Shiba Inu in August 2020, the developers sent just under 50% of SHIB tokens (505 trillion tokens) to liquidity pools and threw away the wallet keys. This means that the said 50% of tokens are in circulation, providing liquidity for the rest of the tokens, but the developers cannot dispose of them.
According to the developers, this was done to provide users with an open market for exchange and fair distribution of the tokens.
The remaining just over 50 percent (505 trillion tokens) was sent to Ethereum co-founder Vitalik Buterin's public wallet in August 2020. The proof is at link.
Next, on May 16, 2021, Vitalik Buterin sent 90% of his remaining Shiba Inu (SHIB) tokens to the inaccessible address 0xdead00000000000000000000000042069420694206942020420696. The address is comical because it starts with 0 and includes the word “dead” which translates to “dead”. Then there are 16 zeros. The probability that someone has access to this address is close to zero, so it can be argued that these tokens are lost forever.
After actually burning the tokens, Vitalik, in the best tradition of the decentralized world, sent another transaction to the same address, with a text message and explanation of his actions.
I decided to burn 90% of the remaining SHIB tokens in my wallet. The remaining 10% will be sent to a charity. Also, in the message Vitalik asked everyone not to send him any assets without his prior consent.
You can see the message in the Input box by opening the Click to see More tab in this transaction
So as of May 2021, about 60% of the maximum issue is outstanding.
Development team
Shiba Inu, like Bitcoin, is created by anonymous developers. There is talk in the community that Vitalik Buterin is behind the creation of Shiba Inu, based on the fact that more than half of the created SHIB tokens were sent to his wallet. However, there is no data from official sources that Vitalik Buterin was part of the developers of Shiba Inu.
Special Features
Shiba is a coin whose developers were the first to take the path of true fair distribution. The team doesn't own tokens, so they can't sell SHIB tokens to the community. They have the same role in the community as other members. Every member contributes to SHIB voluntarily and can find developers' support by contacting them via any available channel.
It's an interesting fact. No one: neither the developers, nor the exchanges, nor the advisors received a single SHIB token. Just like everyone else, the developers and investors bought SHIB token on the market, following the main ideology of the project - creation of decentralized community.
Where to buy Shiba Inu now
Even major cryptocurrency exchanges such as Binance have already poured Shiba token. You can buy SHIB both on centralized exchanges and decentralized ones like Uniswap, as well as in Trustee cryptocurrency wallet from Ukrainian cards.
Full list of exchanges where to buy SHIB token can be found at CoinMarketCap.
Shiba Inu cryptocurrency: instructions on how to buy
The following are a few options to buy the token.
I. How to buy SHIB token through Trustee Wallet for Ukrainian hryvnia
The easiest and most convenient way to buy SHIB token for Ukrainian Hryvnia through Trustee Wallet app.
To do this you need to do the following:
Add an asset - SHIB token - to Trustee Wallet. To do this:
- On the main wallet screen, click “Add asset”
- Go to “More”
- In the column “Asset Address”, enter the following SHIB smart contract address 0x95aD61b0a150d79219dCF64E1E6Cc01f0B64C4cE
- Click “Add asset” and wait for synchronization. The SHIB token is displayed on the main screen and is available for purchase for hryvnia.
Buy asset with Ukrainian Hryvnia
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Purchasing this token is no different from purchasing other assets.
II. How to buy a SHIB token on an exchange
.If you buy on centralized exchanges, you must first register an account, make a deposit in USDT or another cryptocurrency with which the SHIB token is traded, and then exchange your assets for Shiba Inu.
To buy on decentralized exchanges, the following steps must be followed:
- Create a cryptocurrency wallet that supports storage and transfer of ERC-20 tokens. One such wallet is Trustee Wallet.
- Open DEX exchange application and connect your wallet to it. You can connect your Trustee Wallet through Wallet Connect.
- Select a pair for the exchange and exchange your assets for SHIB token. Keep in mind that the average commission on the Ethereum network can be over $60 at times.
The advantage of this method is that the tokens go straight into your wallet and are safely stored there, unlike centralized exchanges.
Good to know. Unlike centralized platforms, on DEX exchanges users can exchange ETH or ERC-20 token to Shiba Uni, with which a matching pair is created, but only if there is enough liquidity. The DEX exchange is a place to exchange ETH or ERC-20 token with Shiba Uni, but only if there is enough liquidity.
Where to store SHIB token
The safest way to store Shiba Inu is a cryptocurrency wallet. Any wallet which supports storage of ERC-20 tokens will do. With Trustee Wallet you can safely store ETH and tokens and connect to DeFi-platforms using Wallet Connect.
Why Shiba Inu rose
In late January, the SHIB token was trading at just $0.0000000014. That's millions of times cheaper than even the world's cheapest currency, the Vietnamese dong. For just 1 satoshi you could buy more than 400,000 SHIB tokens.
You could buy more than 400,000 SHIB tokens.
The reason for such popularity and rapid growth was the hype around the Dogecoin cryptocurrency, which was actively «pamped» by Ilon Musk in his Twitter. He regularly published various posts about the cryptocurrency, which resulted in the growth of DOGE rate by more than 1000% in just two months.
In a wave of hype investors began to look for more attractive assets with the names of animals and began to actively buy them, which caused their price to rise significantly. For example, the SHIBA token grew by 2000% in just four days, making it into the top 15 cryptocurrencies by capitalization.
Other similar altcoins also showed strong growth: the AKITA token grew by 2000% at its peak and PIG by 700%. By the way, Akita is another Japanese dog breed.
Shiba token: price today
Historical high of the SHIB token was $0.000034, which the coin reached after listing on major exchanges, but then the altcoin rate corrected and now the token is trading at $0.00002688.
If you had bought SHIB for 10,000 rubles when it first went public, you would have gotten 96 billion tokens. Now they would be worth more than 190 million rubles, or about $2.5 million. If you had bought SHIB when it first went public, you would have gotten 96 billion tokens.
Do you know. Shiba Inu's rise in popularity has led to a 6x increase in transaction fees on the Ethereum network as of May 2021.
Foresight and prospects for Shiba Inu
The capitalization of Shiba Inu exceeds $10 billion, which by comparison is more than the capitalization of the well-known companies Yamaha, DropBox and McAfee. And less than a week ago the capitalization was only $140 million. Such growth is explained by the general crypto fever and speculative interest from the public. In case of a correction, the price may fall as rapidly as it grew.
The value of the Shiba token is determined by the community: if the community grows, so will the price of the token. But there is still a risk factor that Vitalik Buterin can sell his 505 trillion tokens at any time, which will make the price fall drastically.
In the near future, the developers plan to release their own DEX exchange, Shiba Swap, where it will be possible to exchange SHIB for other cryptocurrencies and add different coins to liquidity pools, earning tokens. For now, the only thing users can do with a token is to exchange it on exchanges.
Closure
You've been introduced to the new cryptocurrency Shiba Inu and learned how it's structured and what's behind it. The developers aim to create a free, decentralized community, and it's up to them to determine how much the project will grow in the future.
Important Investing in altcoins involves huge risks of losing money, especially if you do not know the fundamental reasons of growth of this or that coin. Don't invest if you're afraid of losing money.
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