What is the Shiba Inu Coin?

Shiba Inu started as a joke coin created for the crypto community but quickly evolved into a multi-billion dollar project that would fall under the speculative category. To understand this, you first need to know the difference between a coin and a token.

Token V/s Coin

You know that there are many different blockchains out there. Ethereum is one, binance smart chains is another, and polygon has a blockchain; even dogecoin has its blockchain. Now each blockchain has its coin, and that’s where we get the Ethereum coin, the BNB coin, thematic coin, and so on. However, you can create tokens that are not coins on some of these blockchains because they don’t help run the blockchain but act as a coin, so they are called a token. They utilize the power, security, and upkeep of the leading blockchain to not focus on their blockchain. They act just like the top coin, except they are not. Shiba Inu is somehow a token on the Ethereum crypto, showing it’s not on its blockchain, but it runs on Ethereum. It means there’s no such thing as a Shiba Inu coin; it’s technically a Shiba Inu token. Shiba is a token on the Ethereum crypto network; meanwhile, dogecoin is an actual blockchain of all its own.

Why is Shiba called the dogecoin killer?

Dogecoin is a meme coin that started a long time ago to poke fun at bitcoin and show that anyone could copy-paste the code with some changes. Dogecoin started to gear up in the past few years, and during the last year alone, it has grown in popularity. Since dogecoin is its blockchain and a copy of bitcoin, it doesn’t have the fantastic upgrades that Ethereum has, called smart contracts. Smart contracts aid people to do many more things on the blockchain network than just sending money back. For example, smart contracts permit users to create new tokens. You can’t do that on bitcoin or the dogecoin, or any other blockchain. Smart contracts also enable users to create applications like decentralized exchanges or swap their tokens. Shiba Inu coins can utilize smart contracts. You can do things and perform tasks that you can’t do on dogecoin, like lend it out or allow other people to trade with it while collecting their fees. This is why they claim themselves to be the dogecoin killer.

How did they get started?

In August 2020, a synonymous developer called Ryoshi started the project as a trial in community governance, explaining a test of how a community could decide on variations. His anonymous friend helped Ryoshi set up the smart contract tokens and also invested 10 Ethereum. In an Ethereum and chib pair on uniswap, people could give uni swap some Ethereum and rebuy Shiba. Around mid-march of 2021, Elon Musk tweeted about getting a Shiba Inu dog, which caused the price to increase by 300%. The Shiba Inu developers gave half of literally every shib token out there to Vitalik Buterin, who created Ethereum. They knew his wallet address and just sent him a ton of shib tokens. Most people say this is for advertising purposes so that the developers could believe in their tokens. In reality, you can send him any of the tokens you want, and it doesn’t necessarily mean that they bought it. Eventually, Vitalik took some of these tokens, sold them, and then donated the money he got to the charity. The rest of the tokens that he didn’t sell, around 90 of what he was given, he burned. Burning is a phrase used when a person sends their tokens to a wallet that nobody else has access to, meaning that those tokens are gone forever.

Shib offer holders’ rewards

Since Shiba is an Ethereum token, it offers holders rewards for doing certain things with it. For example, Shiba swap gives out rewards for people who provide liquidity to specific Shiba. They call liquidity digging. When you provide your tokens for traders to use uniswap has to give you something back to prove that you have ownership of that liquidity pool and provides you with liquidity pool tokens. You then lock your tokens, and then you can technically withdraw your locked tokens at any time—they call this locking up phenomenon burying. When you bury your tokens, you start to earn bones. Bones are just another Ethereum token that is a governance token for the Shiba swap. It means if you hold one bone, you get a chance of one vote on changes to the project. The majority of people earn them and then immediately sell them. But some people hold them. The reality is that they are inflationary initially, so any economic student knows what that means for the price. It’s going to go down; this isn’t financial advice, though.

The secret about providing liquidity

If you create a project of yours and the price of your coin dramatically increases in price, and you still own some of that project’s coin or token, you might be thinking you should cash out. The problem is that if the liquidity is low when you trade your token on a uni swap, you’ll crash the price unless you can get other people to provide liquidity. Then when you trade a bunch of tokens at once, the price doesn’t hit as much. This way, you can sell more of your tokens at a higher price.

When All-time highs happen, everyone is in profit.

Since the Shiba Inu token has been hitting all-time highs quite a bit lately, it means that everyone holding the coin is in profit. Everyone is willing to hold on to their profitable asset. Even those who need money badly don’t want to sell out. Nobody has hit ATHs as Shiba has done, so make sure to invest in it as it is a good one.