SHIBA INU: Explained
If you are not living under the rock, you should be aware of Shiba Inu token making a lot of news. Its price skyrocketed by 8,00,000% in just 9 months.
Let’s see what Shiba Inu is and what led to this huge price surge.
What is Shiba Inu?
Shiba Inu is a token based on the ethereum blockchain aspiring to be an alternative to the popular meme coin Dogecoin. Dogecoin was itself created as a joke back in 2013 as an altcoin to bitcoin. It is named after the Japanese dog breed Shiba Inu whose memes are quite popular.
Shiba Inu token was created in August 2020 as an experiment for community building by an anonymous person/group known as “Ryoshi”. They marketed themselves as Dogecoin killers. They quickly gained a cult following on social media via memes and a few tweets by none other than Elon Musk. More on this in the next section.
Shiba coin has a total supply of one quadrillion. As they are based on ethereum they could leverage the power of smart contracts for various defi applications. They have their own exchange named Shibaswap. and the Shiba Inu Token ecosystem supports projects such as an NFT art incubator as well.
What made the price of Shiba Inu so high?
After minting one quadrillion Shiba Inu tokens, the founders donated 50% of them to Ethereum founder Vitalik to show their good intentions and hope of becoming a market disrupter. Vitalik then burned(sent tokens to wallet address which no one owns) 90% of these coins taking them out of circulation. He donated the rest of them to the Indian-Covid Relief fund. The amount donated was about $1 Billion dollars!! Later on, they were listed on Binance and other exchanges as well which further increased their price. Their community started to grow.
Then, there were a couple of things which happened together at the same time which pumped its price up. USA SEC chief said they won’t ban cryptocurrencies and other financial institutes also accepted them. This created a price rally for all the coins.
Finally, Elon Musk came and tweeted if he should own a Shiba Inu dog breed. The tweet had nothing to do with token but it skyrocketed its price gaining almost 400% in a single day. This popularized them and helped in creating a cult following. He again tweeted a single picture of the Shiba Inu's dog and its price skyrocket again. It de-throned Dogecoin as the most valuable meme coin and has a market cap of approx $36 Billion dollars!!
Later on, Elon snubbed Shiba Inu token by saying he doesn’t own any of them which decreased its price a little. But, the price skyrocketed again when the news came that it will be listed on the Robinhood exchange.
People have made millions of dollars from the Shiba Inu token and it looks like the bull run will go for quite a little time.
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