Let’s take a look at now well-known meme-token SHIB in this week’s Coins article and let’s see what the hype is all about.
What is Shiba Inu?
Shiba, in a broad meaning, refers to the whole decentralized ecosystem built around a token based on Shiba Inu dog breed. But it seems it strives to be much more than just a meme-token, one can simply describe it as a cryptocurrency project 100% run by its community. This was (and still is) the fundamental idea and even Shiba’s anonymous creator described it as “an experiment in decentralized spontaneous community building…”
Shiba Inu’s ecosystem currently operates with 3 different tokens: SHIB, LEASH and BONE.
SHIB is the first token and gave birth to this whole project. It is an ERC-20 token (meaning it operates on Ethereum blockchain) and there is a total supply of 1 quadrillion SHIB tokens. However, the founder of the project sent half of the total supply to Vitalik Buterin’s wallet with the words: “There is no greatness without a vulnerable point and as long as VB doesn’t rug us, then SHIB will grow and survive.” It seems his trust in Vitalik is justified as VB has not only used his SHIB in the largest cryptocurrency donation in history to help fight Covid in India, but also then burned 40% of the total supply to a dead wallet.
LEASH, or Leash Dogecoin Killer, is the second token in Shiba Inu Ecosystem and was originally meant to be a rebase token tied to the price of Dogecoin. This decision was later scratched, and Leash remained as a simple ERC-20 token. In a sense though it is an opposite of SHIB — in contrast to SHIB’s enormous supply, LEASH has total supply of only 107 647 minted tokens — and current prices of the two reflect this polarity as well.
BONE is the latest addition to the Shiba Inu Ecosystem, has a total supply of 250 000 000 tokens and “is designed to fit perfectly between the previous two tokens in regards to circulation supply.” It is a Governance token which allows Shiba Inu’s community to vote on proposals for future year(s) and on which token pairs should be added onto ShibaSwap.
Shiba Inu is also helping real-life Shiba Inus! Through Amazon Smile it can collect a small percentage of your Amazon purchases to the Shiba Inu Rescue Association.
Origin of SHIBA INU
As mentioned above, Shiba Inu was created/founded by an anonymous person who goes by name Ryoshi. It is also a fairly recent project, it launched in August 2020.
The idea behind Shiba Inu is total internal decentralization — as mentioned before, it is a project 100% run by its community. It builds on the idea that “In the ever-shifting economic landscape, cryptocurrencies which do not take their independence into their own hands struggle with a tenuous existence.” Shiba Inu tries to stand against bureaucracy of centralized society and even centralized cryptocurrency exchanges, claiming that in today’s informational age, overarching, generational, centralized structures are in many cases a relic.
ShibaSwap is a decentralized exchange (DEX) built by Shiba Inu’s community providing your standard DEX’s functions with a few unique ones (e.g. you can buy BONE only on ShibaSwap), it also provides additional use cases for all three aforementioned tokens. It launched this year on July 6.
Apart from swapping for other coins, you are able to:
DIG or, in other words, provide liquidity to earn BONE.
BURY, meaning stake, your tokens to gain returns.
Purchase and trade Shiboshis, an NFT collection of 10 000 Shiba Inu avatars, created by Shiba Inu’s community.
Personally, I don’t own any SHIB, LEASH or BONE but I am very much enjoying the overall playfulness of this project as well as its more serious and perhaps more hidden meaning/mission. I was glad to learn that Shiba Inu isn’t just another scam meme-coin, but has actual use cases to back-up its success. I am not the biggest fan of its BONE mechanics, where the more BONE you hold the more weight your vote carries. I think that could be potentially exploitable. However, the project seems to be doing just fine so far and I am definitely excited to see Shiba Inu grow.