What Is Shiba Inu ? Is Shiba Inu a Risky Investment?

Welcome to another post of DigiNewsFeed.com. In this post we will talk about  What Is Shiba Inu ?. We will also talk about Detailed analysis as well.

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What is Shiba Inu ?

• Shiba Inu (SHIBUSD) is a type of cryptocurrency called an altcoin that operates on the Ethereum blockchain. It takes inspiration from the shiba inu dog breed, which’s native to Japan and uses it as its mascot. Shiba Inu has gained popularity as an alternative to Dogecoin much so that its supporters often refer to it as the “Dogecoin killer.”
• Both Shiba Inu and Dogecoin are meme coins, which means they are cryptocurrencies associated with a theme – in this case dogs. However these coins are often created as parodies or inside jokes than being designed for practical use. Dogecoin was launched in December 2013 while Shiba Inu came into existence in August 2020 thanks to an individual or group known as Ryoshi.

Key Points

• Shiba Inu is an altcoin that operates on the Ethereum blockchain and uses the shiba inu dog breed as its mascot.
• It has gained popularity as an alternative to Dogecoin. Is affectionately referred to as the “Dogecoin killer”, by its enthusiastic supporters known as the SHIBArmy.
• Shiba Inu was introduced in August 2020 by an individual or group known by the name Ryoshi.
• By October 29 2021 the price of Shiba Inu had risen than ten times reaching a market capitalization of $41 billion. Although it later experienced a decrease to around $6 billion by May 31 2022 Shiba Inu still retains its position, among the top ten meme cryptocurrencies sitting just behind Dogecoin.

Understanding Shiba Inu (SHIB)

• The principles that guide Shiba Inu are outlined on the ShibaToken.com website in what they refer to as a “Woof Paper” (a take on the traditional “white paper” used in financial projects).
• According to this document Shiba Inu was created with the question in mind; “What happens when a cryptocurrency project is entirely driven by its community?” Its founder, Ryoshi attributes its origin to the idea of “decentralized community building.” Ryoshi believes that decentralized decentralization has the potential to create something stronger than a centralized team.

The foundation of the SHIBArmy, which consists of over 500,000 members is rooted in these core principles

• The project started from scratch with nothing. Aimed to build something out of nothing.
• It was not established by any existing community or pre formed team.
• It is an expression of love for Shiba Inu dogs.

Since Shiba Inu is an ERC 20 token based on Ethereum it operates on. Is hosted by the Ethereum blockchain instead of having its own blockchain. Ryoshi chose Ethereum as the ecosystem, for Shiba Inu because it was already secure and well established enabling the project to maintain its nature as mentioned in the paper.

Shiba Inu Overview

Coin Name	Shiba Inu
Symbol	SHIB
Market Cap	$6,246,234,032
Circulating Supply	589,346,914,631,298 SHIB *

How does the Shiba Inu Coin work?

• Shiba Inu Coin (SHIB) is a cryptocurrency that was introduced in August 2020. It is derived from the known cryptocurrency Dogecoin (DOGE). Like DOGE SHIB operates as a digital currency allowing users to make transactions without the need for a central authority. One notable feature of SHIB is its fast block time of one minute which is significantly quicker, than DOGEs ten minute block time.

Understanding the Shiba Inu Ecosystem

The Shiba Inu ecosystem consists of three tokens as described below

Shiba Inu (SHIB)

• This token serves as the currency for the project. Initially it had a supply of one quadrillion (1,000 trillion) tokens. To ensure liquidity Ryoshi locked 50% of this supply in Uniswap. The remaining 50% was sent to Vitalik Buterin, co founder of Ethereum for safekeeping. In May 2021 Buterin generously donated over 50 trillion SHIB tokens ( more than 1 billion dollars at that time) to support a COVID 19 relief fund in India during their battle with the Delta variant. After Buterin also “burned” 40% of SHIBs total supply by transferring them to a so called dead wallet effectively taking them out of circulation.

Leash (LEASH)

• Leash is the token within the Shiba Inu ecosystem and stands in contrast, to SHIB. It has a smaller total supply of only 107,646 tokens compared to the quadrillions of SHIB tokens available.

Bone (BONE)

• Bone has a supply of 250 million tokens placing it in the middle when compared to the other two tokens in terms of circulating supply. Its purpose is to serve as a governance token that enables SHIBArmy members to participate in voting for proposals.

Shiba Inus Doggie Language

• When discussing Shiba Inu tokens the Shiba Inu Woof Paper creatively uses dog related terminology to explain how returns can be earned. On ShibaSwap these tokens can be “earned” (by providing liquidity) “held” (by staking tokens) and even “swapped” (by exchanging one token for another). According to the Woof Paper using these strategies with tokens results, in earning Bone tokens, which are distributed in pools called “Puppy Pools.”
• For cryptocurrency enthusiasts, part of the appeal of meme coins is their rejection of protocols. The use of dog related terms adds to the narrative of unconventional ways to generate returns. However it’s important to note that these terms differ from investment terminology regarding stability and liquidity.

is Shiba Inu is the Dogecoin Killer ?

• Dogecoin, a cryptocurrency that started as a joke and became popular has experienced a surge in its price. As a result it is now ranked as the largest cryptocurrency based on market capitalization. One of the reasons Dogecoin appeals to many is its affordability compared to cryptocurrencies making it more accessible to a wide range of people. However experts have cautioned that this popularity could be a bubble waiting to burst.
• According to a report Shiba Inu (SHIB) has earned the nickname “Dogecoin Killer.” A report published on May 5th 2021 claimed that investing in SHIB might be more favorable than DOGE, for reasons. These reasons include SHIBs faster block time, higher supply and lower market capitalization.

How secure is the Shiba Inu network?

The security of the Shiba Inu network is maintained through measures

Proof of Work (PoW) for Network Consensus

• This consensus mechanism plays a role in regulating the Shiba Inu network making it highly resistant to attackers attempting to gain control.

Active and Vigilant Community Participation

• The Shiba Inu network benefits from an proactive community that promptly addresses potential threats.

Presence of Multiple Hidden Mechanisms

• To further enhance security the network incorporates hidden mechanisms that pose significant challenges, for anyone attempting a successful attack.

Investment Considerations for Shiba Inu

• Investing in cryptocurrencies can be risky due to their nature and lack of regulation. When it comes to altcoins and meme coins like Shiba Inu there are challenges because they often lack differentiation and their value heavily relies on speculative trading by passionate followers. If you’re considering investing in Shiba Inu here are some factors to keep in mind;
• In October 2021 Shiba Inu gained a market capitalization of $41 billion making it one of the top ten meme cryptocurrencies. The initial boost came from a tweet by Elon Musk featuring his Shiba Inu puppy named Floki. However it’s worth noting that Musk is a supporter of Dogecoin and often posts cryptic tweets that contribute to the volatility in the cryptocurrency world.
• After the price surge in October 2021 Shiba Inus market capitalization came close, to rivaling Dogecoins ($36.9 billion as of October 31 2021) which is remarkable considering that Shiba Inu is a relatively young altcoin.
• It’s still uncertain if Shiba Inu will actually live up to the hype of being a “Dogecoin killer ” as hoped by its community, known as SHIBArmy. However as of October 2021 Shiba Inu has made gains in price making it a serious contender, in the market.

Low Token Price

• The price of Shiba Inu (SHIB) has experienced gains but it remains very affordable allowing anyone to purchase millions of SHIB tokens for just a few hundred dollars. When SHIB reached its peak price of $0.0007482 on October 29 2021 $100 could have gotten you over 15 million SHIB tokens. Currently valued at $0.00002925 the same amount would now give you than 3.4 million SHIB tokens, which is more than double the previous number.

Limited Utility and Use Case

• Although some may argue that Shiba Inu based NFTs are now available and its Ethereum foundation could potentially enable smart contract capabilities, in the future it’s important to note that Shiba Inu currently has limited uses and lacks any compelling real world applications.

High Volatility

• The market capitalization of Shiba Inu, which stands at $41 billion is actually larger than that of S&P 500 companies that have been around for decades and have consistently experienced increased sales and profits. It’s interesting to note that when we combine the values of Shiba Inu and Dogecoin (which currently sit at $79 billion as of October 28 2021) their total market capitalization exceeds that of 388 companies in the S&P 500. This remarkable growth is demonstrated by the fact that SHIB was traded at a price of $0.00000000051 on August 2 2020. Its peak price, on October 29 2021 reached a $0.0007482—an incredible growth rate of approximately 14,670,488%!
• This impressive comeback also indicates that Shiba Inu has accomplished its founder Ryoshis objective of creating value from nothing. However these profits could potentially contribute to the trading frenzy as the cryptocurrency community searches for the next major opportunity. If the market bubble bursts, individuals who have invested in Shiba Inu at its peak might find themselves in a situation.

Advantages and Considerations

Advantages

Shiba Inus ecological system offers users a range of benefits

• User Friendly Design; The system is designed to be simple and easy to use.
• Diverse Range of Features; Users can enjoy features that can be customized to suit their needs.
• Security and Privacy; The design gives priority to protecting user data ensuring its safety.

Considerations

However there are a few factors to take into account;

• Availability; This system may not be accessible in all countries.
• Developmental Stage; Shiba Inu is still, in the process of development which may affect its stability.
• Privacy Features; Some users might find that the privacy features of the system are not as comprehensive as they would prefer.

The Future of Shiba Inu Coin

• Although Shiba Inu coin is often seen as a meme coin, its popularity and the interest shown by users indicate a future. According to InvestingCube.com there is an estimation that the Shiba Inu coin could experience a resurgence. While the current value of the token may not be high if active buyers join the market it has the potential to increase its price to $0.00001040. Despite its insignificant current value its popularity could have a significant impact on major investors, in the cryptocurrency market.

Is Shiba Inu a Risky Investment?

• Indeed it is. Investing in Shiba Inu carries risks and involves a high degree of speculation.
• Investing in cryptocurrencies can be risky due to their volatility. The recent increase, in the value of SHIB may expose it to significant declines. It’s important to note that the utility of Shiba Inu is limited and its value mostly relies on the trading fervor fueled by social media excitement.
• Remember that engaging in cryptocurrency investments carries risk so it’s crucial to thoroughly research and evaluate your risk tolerance before making any investment choices.

Frequently Asked Questions(FAQ)