What is Shiba INU?
Shiba INU crypto is a meme coin created to become the “Dogecoin killer”. It has a similar logo to Dogecoin, but with a Shiba Inu dog instead of a Shiba Inu.
In crypto circles, a meme coin is a cryptocurrency based on or inspired by popular internet memes. Meme coin tokens often trade in cents due to their high supply. Still, this doesn’t prevent meme coins from trading in exchanges or attracting a huge global following. Their following is usually drawn by the token’s high volatility and ability to outperform more established projects, especially during trending markets.
Shiba INU and its Ecosystem
The founder of Shiba INU is anonymous and goes by the name Ryoshi. It is also not affiliated with any company or organization. However, the primary goal of Shiba INU is to outperform and eclipse Dogecoin, the original memecoin.
Shiba INU developers have indicated that they do not plan to launch any centralized services or products in the spirit of decentralization and adherence to blockchain principles. Instead, the team plans to focus on building “a decentralized ecosystem of products and services that can be utilized by the community”. The release of features and products anchored on the blockchain increase the utility of SHIB, aiding in propelling the project even further.
ShibaSwap is one of the projects released by Shiba INU developers. It is a DEX on Ethereum enabling trustless trading of tokens, including Shiba INU’s Shiboshi NFTs. The launch of ShibaSwap also saw the release of BONE and LEASH tokens. BONE has voting rights, while LEASH is for rewarding stakers who aid in processing transactions. Shiba INU are also developing their layer-2 solution called Shibarium.
What Affects SHIB Prices?
Tokenomics: SHIB, the native token of the project, is based on the Ethereum blockchain and complies with the ERC-20 token standard. There has been a lot of talk about SHIB’s total supply. According to trackers, SHIB has a total supply of 1,000 trillion, one of the highest total supplies in the world. Because of this high supply, it is highly unlikely that SHIB prices will surge above $1 in the near term. Rather, it will continue trading in cents. However, this doesn’t mean SHIB will trail the market. SHIB prices surged over 200X in the last bull cycle of 2020 to 2022, finding a slot in the top-15 at some point in 2021.
Unexpected External Factors: On launch, 50 percent of the total SHIB supply was locked on Uniswap, a decentralized exchange for trading ERC-20 tokens. The remainder was sent to Vitalik Buterin, the co-founder of Ethereum. These tokens were considered “burnt” or irretrievable. At the peak of the COVID-19 pandemic, Vitalik did the unexpected by sending all sHIB tokens sent to his address, that is, 50 percent of the token supply, to assist in efforts to curb the disease in India. For this reason, SHIB prices plunged. Still, the token is one of the most traded and remains liquid, listed in several exchanges.
Meme Coin Factor and Market Conditions: SHIB, as popular as it may, remains a meme coin. It is a tag that can be both good and bad. In bullish markets, speculators tend to pour on meme coins to “have fun” and to “make a killing” from joke tokens. Whenever prices begin falling, the same traders begin unloading the token, forcing liquidation across the board, negatively impacting prices.It is for this reason that traders should always watch out for the state of the market before initiating positions.
