Shiba Inu (SHIB)
Shiba Inu (SHIB) is a cryptocurrency created in 2020 by a pseudonymous individual known as Ryoshi. It is an Ethereum-based token that is part of a larger ecosystem known as the Shiba Inu world, which includes components such as ShibaSwap, a decentralized exchange (DEX), and other assets such as LEASH and BONE. SHIB is an ERC-20 token run by the community, focusing on decentralization and community involvement.
SHIB started with a maximum supply of 1 quadrillion tokens, but Ryoshi transferred half of these tokens to Ethereum co-founder Vitalik Buterin and locked up the other half in Uniswap. This caused controversy within the community, as some felt that the massive token supply would dilute the value of SHIB. However, Buterin later donated 50.7 trillion SHIB tokens to the India Covid Relief Fund and burned 410.24 trillion SHIB tokens, which helped to reduce the total supply and potentially increase the value of the remaining tokens.
ShibaSwap is an automated market maker (AMM) that allows users to stake (or “bury”) and provides liquidity (or “dig”) for SHIB, LEASH, and BONE. This is done through a “smart farming process,” which involves depositing tokens into a smart contract for yield. SHIB can be traded on various crypto exchanges, and it gained significant attention in 2021, around the same time that Dogecoin (DOGE) experienced high prices and popularity.
Despite its sizeable token supply, the price of SHIB is subject to daily fluctuations and is much lower than Bitcoin (BTC). This is partly because SHIB was created as a meme token, or “memecoin,” and has a reputation for being highly speculative and volatile. It is essential for traders and investors to be aware of the risks and challenges associated with SHIB and to conduct thorough research and risk management before entering the market.