Step-by-Step Guide to Shiba Inu

Shiba Inu Guide

Contents

 

What Is Shiba Inu (SHIB)?

Shiba Inu and Dogecoin are meme coins, which are cryptocurrencies that are associated with some theme—like the Shiba Inu dog in the case of Shiba Inu and Dogecoin—but are often launched as a parody or inside joke rather than as a digital product that actually has some utility. While Dogecoin was launched in December 2013, Shiba Inu was created in August 2020 by an anonymous individual or group called Ryoshi.

Shiba Inu (SHIB) is an ERC-20 token with a total supply of one quadrillion. Shiba is a token that aspires to be an Ethereum-based alternative to Dogecoin (DOGE), the popular memecoin. The Shiba Inu Token ecosystem supports projects such as an NFT art incubator and the development of a decentralized exchange called ShibaSwap. ShibaSwap is a DEX that allows users to trade and stake tokens without an intermediary. The Shiba Inu Token ecosystem also started the Shiba Inu Rescue Association to help fund shelters to save dogs in need.

Who created Shiba Inu?

An anonymous developer named Ryoshi launched SHIB in August 2020. The project began with a total supply of one quadrillion tokens — a truly vast number.

How is SHIB different from DOGE?

SHIB, unlike DOGE, is compatible with the Ethereum ecosystem — which has allowed the community to create crypto apps like ShibaSwap, a DEX that allows users to trade and stake tokens without an intermediary. In the future, the Shiba community plans to release an NFT platform and DAO-based governance system for the Shiba ecosystem (called “DoggyDAO”).

Why Was Shiba Inu Called the Dogecoin Killer?

According to Shiba Inu founder Ryoshi, it earned the nickname “the Dogecoin killer” because the value of SHIB is “primed and ready to overtake the value of Dogecoin.” Ryoshi adds that even if SHIB never hits $0.01, SHIB’s publicity and utility mean that it will be worth proportionately more than Dogecoin.4

Why Was Shiba Inu in the News in October 2021?

SHIB’s price soared more than tenfold during October 2021, moving it into the top 10 of all cryptocurrencies.

As a result, it attracted a great deal of interest from traders and garnered considerable media attention. Secondly, Tesla founder Elon Musk tweeted a picture of his new Shiba Inu puppy Floki in the first week of October, generating significant retail investment in the meme token.2220 In addition, crypto investors were enthused by the launch of Shiba Inu NFTs, as well as unconfirmed rumors that SHIB would be listed on popular stock and crypto trading app Robinhood.

Is Shiba Inu a Risky Investment?

Yes, Shiba Inu is a very risky, speculative investment. Cryptocurrencies can be extremely volatile, and SHIB’s recent gains may make it vulnerable to a significant decline.18 Shiba Inu also has very limited utility, and its value is based mainly on a social-media-fueled speculative frenzy.

Shiba Inu Investing Considerations

Investing in cryptocurrencies is risky enough because of their massive volatility and lack of regulation.18 Investing in the altcoin/meme coin space presents an additional challenge because of a lack of differentiation and the fact that most of their value is based on frenetic trading by their fanatical followers. Here are some investing considerations for a potential investor in Shiba Inu.

Shiba Inu’s price soared more than tenfold in October 2021, giving it a peak market capitalization of $41 billion (on Oct. 29, 2021) and became one of the top ten meme cryptocurrencies by this measure.195 A tweet from Tesla founder Elon Musk on Oct. 3, 2021, featuring a picture of his new Shiba Inu puppy Floki provided the initial impetus for the meme coin’s price surge.20 Because Musk is one of the most high-profile supporters of Dogecoin and the self-proclaimed “Dogefather,” his cryptic tweets often result in heightened volatility in the cryptocurrency space.2122

Shiba Inu’s price surge in October 2021 resulted in it almost catching up to Dogecoin’s $36.9 billion market capitalization (as of Oct. 31, 2021), after briefly surpassing it at one point.1923 It remains to be seen whether Shiba Inu will indeed become “the Dogecoin killer” that its growing community of supporters—known as the SHIBArmy—expects.24 But at least in October 2021, the stunning price gains of this previously obscure altcoin made Shiba Inu the tail that wagged the Dog(ecoin).

  • Low per-token price: Even after its impressive gains, Shiba Inu (SHIB) costs a fraction of a cent, so one can buy millions of SHIB tokens with a few hundred dollars. At its peak price of $0.00007482 (on Oct. 29, 2021), $100 would have fetched you over 1.5 million SHIB tokens. Currently, at $0.00002925, $100 will buy you 3.4 million SHIB tokens, more than twice as much.1925
  • Limited utility and use case: Though its adherents may point out that Shiba Inu-based NFTs are now available, and its Ethereum base might enable smart-contracting capabilities in the future, Shiba Inu presently has very limited utility and does not have a compelling use case yet.
  • High volatility: Shiba Inu’s peak market capitalization of $41 billion makes it larger than many S&P 500 companies that have been in existence for decades and that have grown sales and profits for most of that time. In fact, the combined $79 billion value of Shiba Inu and Dogecoin (as of Oct. 28, 2021) exceeded the market capitalization of 388 companies on the S&P 500.26 On Aug. 2, 2020, SHIB was trading at $0.00000000051, so at its peak price of $0.00007482 (on Oct. 29, 2021), it has gained an astronomical 14,670,488%!27 This means that $1 invested in SHIB on Aug. 2, 2020, would have been worth a cool $146,705 on Oct. 29, 2021. By mid-2022 the price had fallen to $0.00001040.
  • That eye-popping return also means that Shiba Inu has achieved its founder Ryoshi’s objective of creating something from nothing in spades. However, those gains may likely have been driven by social-media-fueled speculative frenzy as cryptocurrency enthusiasts look for the next big thing. If the bubble bursts, retail investors who got in at the highs may be left holding the bag.

FAQS

Why is Shiba Inu a memecoin?

Memecoins are coins developed based on memes or jokes that go viral on the internet. This is what happened with DOGE, the first memecoin that emerged based on a photo of a Shiba Inu dog. It served as the inspiration for the creation of SHIB.

How did the Shiba Inu come about?

Shiba Inu was created by a person or group of people under the pseudonym Ryoshi. Just like Satoshi Nakamoto, the pseudonym of Bitcoin’s founders, the fate of this(these) individual(s) is unclear.

Is it worth buying the Shiba Inu coin?

The decision to buy a cryptoasset or not depends on each person’s intentions and goals. You can use SHIB to buy other assets, transfer it to another address or keep it in your personal account. In any case, we recommend that you follow the Bitso channel on our social networks to learn more about the market for these assets.

How to buy Shiba Inu (SHIB)?

To buy SHIB and many other assets in a quick, convenient and secure way, simply download the Bitso app or access our website. You only need to make a deposit and then convert the amount to buy the cryptocurrency you want. And if you have any questions, you can always count on our Help Center!