Everything You Need to Know About the Shiba Inu Token

Noah Fields
Noah Fields

Everything You Need to Know About the Shiba Inu Token
Table of Contents
Table of Contents

Besides the most popular cryptocurrencies, like Bitcoin and Ethereum, many others like Shiba Inu are available for trading, bringing potentially mouth-watering returns to holders.

One popular category of cryptocurrencies is the “meme coin.” Loosely defined, a meme coin is a cryptocurrency that either started as a joke or pulled in unexpected returns within a short time without any fundamental reason to push its value. Many people do not expect commendable performances from meme coins and are reluctant to take them seriously. However, in the case of Shiba Inu, meme coins sometimes become impossible to ignore.

What is Shiba Inu Coin?

Named after the Japanese dog breed from the country’s Chūbu region, Shiba Inu is a meme coin launched in August 2020. Colloquially referred to as the ‘Dogecoin Killer,’ the Shiba coin is an Ethereum-based cryptocurrency and one of the many ERC-20 tokens. Also, like Bitcoin’s Satoshi Nakamoto, Shiba Inu’s creation story features Ryoshi, an anonymous person or group at the helm of affairs. Currently operating with a Proof of Work (PoW) consensus mechanism, the Shiba Inu network requires token mining and heavy computational effort similar to other PoW networks.

How to Buy Shiba Inu

Shiba Inu tokens trade on most major exchange platforms and are available to all interested users. Tokens are available on several centralized exchanges, such as Binance, Coinbase, and KuCoin. Users should note that providing personal information to complete the exchange’s know-your-customer (KYC) requirements is a compulsory part of the process if they decide to buy through a CEX.

Users can select Shiba Inu (SHIB) on the marketplace and choose their preferred mode of purchase. Some exchanges allow direct fiat purchases depending on the particular fiat currency used or whether or not there are limiting laws in the buyer’s jurisdiction. Buyers may also swap cryptocurrencies they already own for SHIB if the pair exists. Also, peer-to-peer trading options may be available.

In addition to centralized options, interested buyers can purchase SHIB tokens on decentralized exchanges such as ShibaDEX.

ShibaDEX is a non-custodial wallet and decentralized exchange rolled into one application. ShibaDEX supports popular meme coins such as SHIB, DOGE, BONE, LEASH, CUMMIES, GM, and more. Plus, users can trade cryptocurrencies across multiple blockchain protocols, including Bitcoin, Ethereum, BNB Chain, and more.

How Does Shiba Inu Work?

Shiba Inu serves as a competitor to Dogecoin (DOGE), which launched eight years earlier in 2013. Regardless of the wide time gap between both launches, DOGE is currently the 12th largest cryptocurrency according to CoinMarketCap, while SHIB is not far behind at number 14.

Shiba Inu started out with a team of decentralized finance (DeFi) proponents, without any central leadership, team, or funding. Today, the supposed Dogecoin killer operates a fully community-driven and decentralized ecosystem.

Shib Inu has a total supply of 1 quadrillion SHIB coins. Founder Ryoshi locked 50% of this supply on the Uniswap decentralized exchange to ensure liquidity. In what seemed like a marketing gimmick, Ryoshi sent a significant percentage of Shina Inu tokens to Ethereum co-founder Vitalik Buterin in May 2021. However, Buterin sold 90% of the tokens he received, essentially taking 40% of all Shiba Inu crypto out of circulation. He then donated the remaining 10% to COVID relief efforts in India.

Although Shiba Inu works using the PoW mechanism, it’s transitioning to Proof of Stake (PoS). With the forthcoming introduction of ETH 2.0, the new upgrade will use the PoS consensus method and offer faster transaction speeds and cheaper costs for more scaling opportunities.

Shiba painting
Shiba fan art

The Shiba Inu Ecosystem

The Shiba Inu ecosystem comprises a few different products, including tokens and other applications.

In August 2023, Shiba Inu launched Shibarium — an Ethereum Layer-2 network that uses SHIB tokens as fees. Shibarium's main focus is to create a scalable solution for applications related to metaverse, gaming, and DeFi.

The flagship offering is the SHIB token, which powers the entire ecosystem. Members of the Shiba Inu community can also enjoy the following tokens:

  • Leash (LEASH): The Leash token is available on the Shiba Inu ecosystem, and provides staking rewards for users validating transactions on the network. The maximum supply of LEASH is 107,646.
  • Bone (BONE): BONE is the ecosystem’s governance token with a supply cap of 250 million units. Members of the community use BONE to vote on proposals before implementation.
  • Shibaverse (VERSE): ShibaVerse is a Metaverse aiming to be a decentralized, digital world on blockchain, bringing features such as virtual reality, digital real estate, NFTs, Play2Earn (GameFi), freelance jobs, and interactive aspects all into one sleek and captivating environment. VERSE is the native utility ERC20 token that is used for purchasing new real estates and other NFT assets. It's also used to reward users who to use its pay2earn features.

On top of tokens, users can also enjoy other Shiba Inu products, including Shiboshi: a non-fungible token (NFT) project created on the platform. Each Shiboshi is a pixelated Shiba Inu dog with specific traits that make them unique, such as a party hat or laser eyes. The entire first collection of 10,000 Shiboshis has already sold out.

Shiba ecosystem tokens
The Shiba ecosystem includes SHIB, LEASH, and BONE tokens.

Shiba Inu Investing Considerations

Unlike many other cryptocurrencies, there are not many real-world applications for SHIB tokens. Although major American online tech retailer Newegg announced support for SHIB, the new token is still a long way from widespread adoption at the level where major assets like BTC and ETH thrive. However, like most cryptocurrencies, people hold Shiba Inu for the possibility of future adoption.

In 2021, Shiba Inu returned more than 53 million percent in one year, one of the largest the crypto sector has ever seen. Although that number dropped to 49 million percent throughout 2021, it was still very impressive. To put it into perspective, a $2 investment in SHIB on New Year’s Day in 2021 would have created a new millionaire by the end of the year. So far, many credit SHIB’s unbelievable rise to increased visibility and quick acceptance by several major crypto exchanges.

The Future of Shiba Inu

There are several reasons to believe in a possible spike in the Shiba Inu coin price. Most Shiba Inu news and speculation suggest an increase in adoption over time. For instance, the popular movie theatre chain, AMC Entertainment, now supports Shiba Inu payments, while the Flexa payment network provides support at over 40,000 US merchants.

Another noteworthy factor is Shiba Inu’s Layer-2 blockchain, Shibarium. Shibarium will host many new projects upon launch, allowing developers to build products and services on the blockchain.

Shibarium will also host Shiba Inu’s upcoming Oshiverse. The metaverse will host multiple play-to-earn virtual reality games that will help the ecosystem compete with the myriad of GameFi and metaverse offerings currently available in the market.

Finally, a demand resulting from the above points could cause SHIB to retain its current all-time high price, and maybe even top it. In addition, a drop in supply may also be sufficient enough to spur a price hike. However, not many events like Buterin’s burn would considerably shorten SHIB’s supply enough to see a price increase similar to 2021. Nevertheless, there is the possibility, however slim, that Shiba Inu developers could create a burn policy that turns things around for the Shiba coin.

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