Shiba Inu Coin Explained: What You Need to Know Before investing in SHIB

The current financial market depends on technological innovation. Cryptocurrency and other digital currencies, such as Central Bank Digital Currencies (CBDCs) are testament to the innovative nature of the financial landscape. Shiba Inu Coin is no different as it is among the list of renowned crypto meme coins.

What is Shiba Inu and what does it mean by meme coin? This question will often appear when you think of investing in Shiba Inu (SHIB). It all started in 2020 when an anonymous crypto developer introduced the SHIB token as a meme coin. Then, a vibrant community took this meme coin to a new height of success.

However, there is much to the story. This article will guide you through everything you need before you start investing in Shiba Inu or other meme coins, such as Dogecoin and others. You will learn the following:

• What is a SHIB token?
• How does it work?
• Shiba Inu Coin tokenomics,
• Pros and cons of investing in SHIB token,
• Where to get started on your investment journey with this meme coin?

We have a complete guide for you so that you never miss on anything necessary for the success of your investment experience.

Shiba Inu (SHIB) – Overview

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Before we discuss what Shiba Inu is, let’s understand the difference between a crypto token and a coin. Typically, we use both words interchangeably. However, they are different. For illustration, we have got two different cryptocurrencies and both are meme coins – Shiba Inu and Dogecoin.

In this example, Dogecoin is a crypto coin because it has a specified or designated blockchain network. On the other hand, Shiba Inu is a crypto token because it lacks its own blockchain network. SHIB token is built on the top of another blockchain, known as the Ethereum blockchain.

Now, the question is meme coin. Shiba Inu came into existence as a meme token. A meme token is usually mocking an actual cryptocurrency. However, it grew to a wide range of communities, becoming a 7.527 billion dollar project.

The Genesis of Shiba Inu Coin

We’ll cover everything about Shiba Inu in this guide. Before that, let’s uncover how this crypto token started in the first place. Also, why is it known as Dogecoin Killer? Back in August 2020, an anonymous person or group of persons, known as Ryoshi, created Shiba Inu.

Shiba Inu is a crypto token with a symbol of a Japanese hunting dog. Regardless of its resemblance to the renowned Dogecoin, it stands out in multiple areas. You can assess its uniqueness and value from the vision of its creator, Ryoshi.

According to Ryoshi, the Shiba Inu token is a completely community-based crypto project. It implies that there is no organization owning Shiba Inu but the people and holders of this crypto token that can govern and look after its market proposition.

Moreover, it has certain features which outperform Dogecoin. We’ll cover them later in this guide when we comparatively look at Dogecoin and Shiba Inu tokens.

How Does SHIB Work?

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Shiba Inu is an open source and community-centric project. It means that every member of the community holds adequate power and potential to make changes to the Shiba Inu ecosystem.

We can understand how SHIB works by assessing its blockchain ecosystem and staking mechanism. They are as follows:

Early Blockchain

Discussing the Shiba Inu ecosystem, it will be incomplete not to mention the ERC-20 token of Ethereum. The best thing about SHIB token is its existence on the dynamic blockchain network of Ethereum. It gives an upper edge to Shiba Inu over Dogecoin.

Since Dogecoin has its own blockchain, which replicates the Bitcoin system, it lacks multiple fundamental functionalities. For instance, it is a coin that you can use only for exchange between financial networks.

However, Shiba Inu is exceptional when it comes to functionality. It is not just a meme coin that mocks a cryptocurrency project but a complete crypto token with every relevant feature that a crypto token serves. SHIB holders can stake their tokens, exchange them with other crypto assets, and earn profits.

Transition to Proof of Stake

Despite the dynamic and growing ecosystem of Ethereum blockchain, Shiba Inu introduced its own blockchain. In January 2023, it led the foundation of a layer two blockchain network for SHIB users and holders. The newly forked blockchain is Shibarium.

Shibarium is a fork of Ethereum blockchain, meaning that it is built on top of Ethereum blockchain with a few tweaks for improvements. The purpose of this distinguished development was to cut off network congestion, pave the way for staking of SHIB, and streamlines a framework for decentralized applications (dApps) and Web3 solutions.

We’ll talk about how SHIB staking works and what are different terms used for this method of passive income through cryptocurrency, especially SHIB tokens. So far, the Shiba Inu token is doing wonders in the market. It is in direct competition with Dogecoin regardless of several years of gap between the two leading meme coins.

Shiba Inu Coin Tokenomics

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According to CoinMarketCap, Shiba Inu is ranked 13 among the largest crypto projects globally in terms of market capitalization. The number of available SHIB tokens is a whopping sum.

We will talk about the entire tokenomics and token supply distribution by covering each of Shiba Inu Tokens.

1. SHIB Token

SHIB is the core token of the Shiba Inu network, which is popular globally as a payment method directly or via third parties. According to the official website of this crypto project, the total supply of SHIB is 1 quadrillion SHIB tokens. However, the circulating supply is 589.269 trillion SHIB.

The reason for this reduction in the total supply of SHIB is due to a few reasons. Firstly, Ryoshi locked 50% of SHIB in Uniswap for liquidity. Locking liquidity of a crypto asset means security as none can withdraw the assets unless unlocked from the liquidity pool.

Secondly, Ryoshi also performed a marketing stunt. In an anonymous transfer of 50% SHIB to the co-founder of Ethereum, Vitalik Buterin spread the word for the newly created meme coin. Buterin donated plenty to charities and burned the rest of SHIB.

Burning cryptocurrency refers to sending a specific amount of crypto assets to an inaccessible wallet. Thus, those crypto assets become unavailable for anyone, leaving a progressive impact on the price and reducing the total supply.

2. BONE Token

The next token of the Shiba Inu network is the BONE token. The best and most creative thing about this Ethereum-based token is its working. BONE is the governance token of this ecosystem. It has a total of 250 million token supply in the market.

You can buy BONE tokens directly or stake SHIB on Shiba Inu’s staking platform, ShibaSwap. We’ll cover staking later in this article. As a governance token, BONE empowers the voting and democratic architecture in Shibarium, which is the Layer 2 blockchain of Shiba Inu.

Users can use buy (stake) SHIB to earn BONE. They can also dig (farm), which is equivalent to mining SHIB to earn BONE tokens. The higher the holdings of BONE tokens, the higher will be the voting rights of the stakeholder in the Shibarium. Moreover, the returns of the digging and burying are available in the Puppy Pools for stakeholders and SHIB users.

3. LEASH Token

Since the Shiba Inu ecosystem offers multiple features and functionalities to users, LEASH is another crypto token for that purpose. With a total of 107,646 tokens circulating in the market, users can get additional perks of the Shiba Inu through LEASH.

Just like SHIB is the key token and BONE is the governance token, LEASH token performs everything else the ecosystem is capable of. That includes exclusive access and benefits of the Shiba Inu. Moreover, it also allows ShibArmy to access Shiboshi NFT minting and the upcoming Shib: The Metaverse Real Estate.

If you are interested in decentralized finance (DeFi) lands or digital assets like non-fungible tokens, LEASH is the right token to invest in. You will learn about investing and trading SHIB later in this article.

Shiba Inu Blockchain Ecosystem

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As we mentioned earlier, Shiba Inu is a community-based crypto project. The community members or ShibArmy enjoy various benefits and exclusive perks due to the terms and regulations created by Ryoshi.

Ryoshi has put in efforts to create and modify a versatile platform for the ShibArmy. The Shiba Inu blockchain ecosystem is a suite of relevant platforms with various use cases for crypto enthusiasts.

Let’s uncover the top platforms in the SHIB ecosystem that helps Shiba Inu to stand out from its competitors.

1. ShibaSwap

ShibaSwap holds significant importance for everyone interested in engaging with Shiba Inu tokens. It is a decentralized exchange (DEX) just like any other crypto exchanges, such as Binance, OKX, etc.

As a DEX, ShibaSwap is the core platform for ShibArmy to enjoy multiple opportunities. That includes:

• Trading,
• Swapping,
• Locking liquidity of SHIB, BONE, LEASH, and other crypto assets.

The best thing about ShibaSwap is providing SHIB token holders with endless ways to gain rewards and profits by taking part in liquidity pools. Moreover, ShibaSwap remains decentralized while streamlining trading and investing in crypto assets, especially SHIB and LEASH.

2. Shib Games

You can realize the versatility of the Shiba Inu ecosystem when you access Shib Games. It is a Shiba Inu affiliated company for the development of decentralized games for the ShibArmy. One of the best games it developed is Shiba Eternity.

Shiba Eternity is a collectible card game (CCG) in which players are on a mission to collect and craft cards. The purpose of doing so is to collect as much Shiboshis as possible so that you can participate in an epic combat with your character.

Thus, you must make it stronger to win the duel and reap rewards in BONE tokens or NFTs. In simple words, Shiba Eternity is a play-to-earn game without paying a penny for it. Moreover, it supports multiple operating systems, including Android, Windows, iOS, and even popular browsers like Microsoft Edge, Google Chrome, Mozilla Firefox, etc.

3. Shiboshis

You have already read about Shiba Eternity. While playing the game, the primary objective is to build a stronger and competitive Shiboshi. Technically, Shiboshi is a non-fungible token. It is built on top of the Ethereum blockchain, making it safe and reliable.

The total number of Shiboshis are 10,000 NFTs with versatile features and functions. Since non-fungible tokens are rare and unique digital assets, they help artists with huge financial gains in the decentralized market.

4. Shiba Inu Incubator

In this digital age, artists and digital creators have plenty of opportunities to expand and leverage their potential for higher gains. However, it comes at the cost of compromising the protection of intellectual property, which has become a phenomenal concern.

Therefore, Shiba Inu Incubator is the right platform that offers security to digital creators and artists. It is a platform that allows them to create and protect their digital assets on the Ethereum network. Moreover, it connects them to the huge market of NFTs so that they can connect and network with the right audience and make money out of their craft.

It is important to note that earlier, Shiba Inu Incubator was referred to as Artist Incubator. However, NFTs and other digital assets are also accessible in ShibaSwap.

5. Shibacals

Another addition to the amazing Shiba Inu ecosystem is Shibacals. Artists of the ShibArmy or community can enjoy converting their digital collectibles and NFTs to physical and authenticated things.

It works this way:

There is a demand in the community for a physical collectible, such as a toy, plushy, etc. An artist uses Shibacals platform to create physical products of the digital collectibles, and list them on the online community page. This way, the process goes both ways in a win-win situation.

6. Shib the Metaverse

Metaverse refers to the realistic and immersive virtual world with everything you want in the physical world. In other words, a metaverse is the amalgam of the physical and a virtual world.

Shiba Inu has launched Shib the Metaverse as a place to help its community access modern innovations on the go. SHIB token holders can benefit excessively from this platform, which involve:

• Purchase virtual land,
• Mirror a real business in the advanced metaverse,
• Develop a play-to-earn game, and many more.

It is due to these reasons that Shib the Metaverse is the next big thing that will uphold Shiba Inu in the crypto market to a new height of success.

You can also read about Nexo Crypto App review 2024.

SHIB Staking

Staking cryptocurrency is the best way to earn passive revenue off your funds. During its early years, Shiba Inu operated on Proof-of-Work (PoW) consensus mechanism in correspondence to Ethereum blockchain.

However, the launch of Shibarium has paved the way for Shiba Inu to transition towards Proof-of-Stake (PoS) mechanism. PoS is highly efficient, well-governed and environmentally-friendly.

This has also introduced SHIB staking, also known as SHIB Bury. Burying Shiba Inu tokens means that members of the Shiba Inu community can use the ShibaSwap platform to stake their crypto holdings for rewards and profits.

According to Shiba Inu website, a total of 24.29 million BONE are staked on the platform. Moreover, creating a liquidity pool for higher returns is also effortless with ShibaSwap. You can either create your pool or join one to lock liquidity for a crypto token.

Investing in Shiba Inu

Shiba Inu coin gained traction in the market due to its token transfer strategy. Since then, crypto experts labeled it the Dogecoin Killer and it is true in a sense. Dogecoin (DOGE) and Shiba Inu (SHIB) have a big difference in launch date. Yet SHIB managed to expand its market capitalization to a staggering value.

Moreover, a renowned American business person, Elon Musk, has expressed his inclination towards the canine-themed Shiba Inu on his platform X multiple times. According to CoinDesk, the tweet from Elon helped SHIB to gain momentum in the crypto market.

Therefore, it is the right choice to invest in SHIB tokens for lucrative benefits. But before that, ensure to thoroughly research the market and conduct technical and fundamental analysis. This will save you from getting into financial loss.

How to Buy Shiba Inu Token?

SHIB is among the top 15 cryptocurrencies in the market. Therefore, every leading crypto exchange offers traders and investors to put their funds into it. The best option for SHIB investment is ShibaSwap, which is the native decentralized exchange of the Shiba Inu ecosystem.

However, there are other reliable options as well. Such as:

• Binance,
• Coinbase,
• KuCoin,
• OKX,
• Bybit, etc.

Be mindful that some of these exchanges are centralized or include verification policies, which consumers must abide by. For instance, you can’t get started with trading on Binance unless you have not completed Know-Your-Customer (KYC) compliance.

Moreover, you can visit the official website of Shiba Inu to buy or exchange SHIB and other tokens of the Shibarium – the layer two blockchain of Shiba Inu.

Pros of SHIB Investment

• Effortless Accessibility: Shiba Inu tokens, including SHIB, LEASH and BONE are available on popular exchanges as well as its website. Therefore, investing in these tokens requires minimum effort, thanks to its widespread popularity among crypto enthusiasts.
• Payment Options: SHIB is also one of the preferable methods of payment on several platforms. You can use SHIB to pay for services and products of popular retailers and companies. That includes CoinGate, Sling TV, AMC, APMEX, etc.
• Deflationary Token: The SHIB token of the Shiba Inu ecosystem is an economically-fit asset that combat against inflation. Inflation refers to the slow decay of the value of money. Due to the deflationary nature of the SHIB, you can hold it for longer without it losing its value. On the contrary, it will offer financial gain in the long run.
• Customer Convenience: Shiba Inu is available for the customers on every device. Whether you are comfortable with a smartphone, laptop or tablet, you can access every application or service related to Shiba Inu, such as the Shiba Eternity game.

Cons of SHIB Investment

• Low Per-Token Price: The price of a SHIB token is less than a cent. Due to the low price per unit of Shiba Inu token, it offers less benefits to investors. However, it is still an effective choice for big investors as the value of SHIB may grow abruptly in the future.
• Limited Applications: Though many state that Shiba Inu is merely a meme coin, which lacks additional use cases. It is true up to some extent, but the adoption of its native blockchain on top of Ethereum has increased its applications.
• High Volatility: Since SHIB is a cryptocurrency regardless of its low per-token price, volatility is still the case associated with it. The irregular price changes happen for SHIB and other tokens of the Shiba Inu ecosystem.

Shiba Inu vs Dogecoin – The Key Differences

Both Shiba Inu and Dogecoin are meme coins, but when it comes to utility and use cases, SHIB stands out. This is due to the fact that Dogecoin is a mimic of Bitcoin which has limited utility.

Here are some of the key differences between Shiba Inu and Dogecoin to help you understand the difference.

	Shiba Inu (SHIB)	Dogecoin (DOGE)
Launched in	2020	2013
Circulating Supply	589.269 trillion SHIB	145.85 trillion DOGE
Market Ranking	13	08
Purpose	Community-centric crypto project for fun as well as convenient financial instrument	Meme coin to mock Bitcoin
Creator	Anonymous (Ryoshi)	Jackson Palmer and Billy Markus
Blockchain	Shibarium (Built on top of Ethereum)	Dogecoin
Crypto Tokens	SHIB BONE LEASH	Dogecoin (DOGE)

Conclusion

Starting as a meme coin, Shiba Inu has proved to be a valuable addition to the crypto market. Until 2023, it was a minimal valued crypto project with no huge impact on the market. As of now, SHIB is already in the top 15 cryptocurrencies by market capitalization.

The future of SHIB looks bright because of the partnerships and collaborations Shiba Inu is going through. Elon Musk, several global retailers and companies have started noticing and investing in SHIB, which will result in a bullish market for the crypto project.

Therefore, it is the right choice for the investment. Before you do that, remember that the cryptocurrency market is highly volatile and risky if you lack fundamental knowledge about investing in crypto.

FAQs

What makes Shiba Inu unique?

Cryptocurrency is decentralized and Shiba Inu is decentralized as well as community-oriented. The SHIB community (ShibArmy) voted for any changes to the block or the ecosystem, making it a complete censorship-resistant crypto project.

How secure is the Shiba Inu network?

Shiba Inu uses a PoS mechanism for the security and strengthening of the network. There are validators or stakeholders that contribute to improve and safeguard Shiba Inu even further.

How to stake Shiba Inu?

Staking SHIB is easy as you will visit ShibaSwap and connect your wallet to it. Then, you’ll transfer the funds to the wallet and choose your desired token to stake. There are multiple options on the ShibaSwap platform to choose from.

Why was Shiba Inu called the Dogecoin Killer?

There are several reasons for calling SHIB the Dogecoin Killer. That includes quick block time, significant supply, optimal investment choice for small-scale investors, and more.

Where to buy Shiba Inu coins?

You can deposit SHIB to your Binance or other popular exchange with a few simple clicks just like other cryptocurrencies. Furthermore, Uniswap and ShibaSwap are the most secure platforms to buy and exchange SHIB and its related tokens.