What is Shiba Inu Coin?

What is Shiba Inu Coin?

Hello there and welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be talking about a coin that initially started as a meme and was once seen as a parody of the Dogecoin. It has just risen up by 777% in the last 30 days and the coin is no other than the trending “Shiba Inu coin”.

Before we get started with the main topic, let's take a quick look at Shiba Inu's recent developments. In the last 24 hours, the meme coin has risen by 30% and a coin that was once seen as a Dogecoin spinoff is fully ready to take down Elon Musk's favorite cryptocurrency (Dogecoin). Shiba Inu just recently hit an all-time high of 0.00006 and taking a look at things at a broader level – Shiba Inu has almost doubled its value this week.

If you were told that a mere meme coin has dominated the crypto market, would you believe that? Well, I think after the Dogecoin fiasco, many of you would. Anyways, another meme coin has been announced to have done the same as Dogecoin – Shiba Inu.

At the moment, Shiba Inu is the 11th largest cryptocurrency, with a market cap of a whopping $29 billion. Although this is unrelated, – Dogecoin just went down by 11% in the last 24hrs. Now, to the main topic.

What is the Shiba Inu coin?
On its launch, Shiba Inu's developer referred to the coin as the “Doge killer”. Meanwhile, the coin also took its branding from the same Shiba Inu (logo) Japanese dog as the Dogecoin. Many reading this right now, would think the Shiba Inu is highly obsessed with Dogecoin and it was created by Elon Musk. Trust me, I also got the same perceptions for a long time when I thought about it.

In reality, the Shiba Inu coin was created by Ryoshi in August of 2020. In the coin's whitepaper or wolfpaper (as termed by its creator), Shiba Inu was created as an experiment in decentralized spontaneous community building.

As regards the coin's mechanics – it is based on the Ethereum blockchain. These days, folks tend to use the Ethereum blockchain on their projects, leading it to become the go-to blockchain for all-new token projects in a fast-growing trend known as – “Decentralized finance”. It aims to replicate traditional financial products like lending and trading.

Reading this, most of you would have realized that Shiba Inu itself has no real value. Even if you follow just a little bit about finances, then you must be familiar with the “Gamestop saga” that took place just a few months back. Investing in meme coins only has one purpose – to have maximum gains in the shortest amount of time.

Like traders who rushed into GameStop, over a Reddit forum, was sending the market into wild swings. Amateur crypto traders do the same by investing in meme coins. While we're on the topic of gains, let's talk about the owner's gains through Shiba Inu.

According to Ryoshi, he does not hold any tokens. The cryptocurrency has a total supply of 1 quadrillion (according to data from “CoinGecko” – a crypto market live tracker). In May 2021, Ryoshi sent half of the coin's entire supply to Ethereum creator (Vitalik Buterin), who sent 50 trillion of the token to an Indian Covid relief fund. Buterin then proceeded to destroy most of his holdings and donated the rest to charity – saying he doesn't want control over it.

So the major question that remains is – why is the price of Shiba Inu increasing at such a rate? The major factor behind this is the constant speculation of Shiba Inu being listed on Robinhood. Fans of cryptocurrency are pushing hard for it and have even made a petition on change.org. The petition has more than 300,000 signatures.

On the other hand, Robinhood has not made any public announcement regarding if it will support Shiba Inu or not. But during an earnings call this week, the CEO of Robinhood – Vladimir Tenef, said that “My platform will carefully evaluate whether we can add new coins in a way that's safe for customers and in line with regulatory requirements.”

“We feel very very good about the coins that we're currently listing on our platform and for any new coins that we add, we want to feel equal, if not better,” he added.

Taking a close look at Robinhood, they also don't seem in good shape. Robinhood wasn't able to meet its revenue target for the third quarter. This was due to a big drop in trading volume on the platform. Robinhood's private shares were down more than 10% in early Wednesday trading.

If we go a little back, we saw that Robinhood made an increase in their revenues in the second quarter through digital currency on the online brokerage. If we have a closer look, 62% of the brokerage revenue came from Dogecoin.

Another reason for the sudden price increase is the launch of NFT (Non Fungible Token) by the Shiba Inu community. The tokens have been named “Shiboshis”. For those of you who don't know – NFTs are designed based on blockchains like Bitcoin, Ethereum, Cardano, Polkadot, etc, in which regular people stake money into smart contracts and issue their own uniquely customized tokens, to which digital arts are attached. They're a type of digital asset that tracks ownership of virtual collectible items like art or sports memorabilia.

The real question that needs to be addressed now is – if Shiba Inu is useful or just another coin?. At the moment you're reading this (2021), it's difficult to say. For starters, Shiba Inu wasn't originally built to be a unique coin for borrowing, lending, trading, or gaming, but things have changed now.

Currently, the Shiba Inu community is working on different things to become useful so that it can redeem itself from being a meme coin. For example, “Shib Swap” was launched by Shiba Inu in July. It is a platform that aims to provide utility for the token in terms of staking and rewards.

It should be worth mentioning that, the price of Shiba Inu also soared when Elon Musk tweeted that he doesn't hold any Shiba Inu. At the end of the day, it is still a meme coin no matter how much anyone/everyone glorifies it.

This brings an end to today's crypto guide. We tried to cover all the important aspects of the Shiba Inu coin in this article and hopefully, it was really helpful.

Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading!

Alade Habeeb

I am a writer with a sense of creativity to write on multiple topics. I create engaging, thrilling and entertaining contents and I always take the time to edit my work well before publishing. I follow all the latest trends and read about recent happenings in the entertainment industry to always update my readers.

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