What is the Shiba Inu Coin? SHIB Explained

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What Is The Shiba Inu Coin?

What is the Shiba Inu Coin:

Shiba Inu started out as a joke coin created for the community but has quickly turned into a multi-billion dollar project that would probably fall under the speculative category. However, our website is focused on providing the facts and ideas without biases or rumors, so as much as possible we will keep our opinions out of this article and let you decide based on as much true factual and whole information that we can fit in this article.

In this article, we are going to explain what the Shiba Inu token is?

Why it’s been growing at an incredible pace and what it will take to reach the price of one penny?

First off let’s make sure you understand the difference between a coin and a token I’m going to assume that you already know what a blockchain is and you should know that there are many different blockchains out there ethereum is one, binance smart chain is another polygon has a blockchain even dogecoin has its own blockchain. Now each blockchain has its own coin and that’s where we get the ethereum coin the BNB coin and the matacoin and so on from however on some of these blockchains you can create tokens that are not coins because they don’t help run the blockchain but they act like a coin so they’re called a token they utilize the power the security and the upkeep of the main blockchain so that they don’t have to focus on their own blockchain and like I said earlier they act just like the main coin except they aren’t.

Shiba Inu is a token on the ethereum network meaning it’s not on its own blockchain it runs on ethereum this means there’s no such thing as a Shiba Inu coin it’s technically a Shiba Inu token I’ve seen a lot of confusion about that from newcomers and wanted to clear it up Shib is a token on the ethereum network meanwhile dogecoin is an actual blockchain to all its own so now that we’re through that distinction.

Let’s get into why Shiba is called the dogecoin killer? If you don’t already know dogecoin is a meme coin that started a long time ago to poke fun at bitcoin and shows that anyone could copy the code with some changes dogecoin started to pick up some speed in the past few years and during the last year alone it has really grown in popularity. Since dogecoin is its own blockchain and it’s kind of a copy of bitcoin it doesn’t really have the cool upgrades that ethereum has something called smart contracts.

Smart contracts allow people to do many more things on the blockchain network than just send money back and forth for example smart contracts allow users to create new tokens you can’t do that on the bitcoin or the dogecoin blockchain smart contracts also allow users to create applications like decentralized exchanges or you can swap your tokens we’re already getting off topics so if you want to learn more about decentralized finance smart contracts and how decentralized applications work check out our other articles I promise once you watch a few the algorithm will start to feed you more, anyways the Shiba Inu token can utilize smart contracts you can do things with it that you can’t do on dogecoin like lend it out or let other people trade with it while you collect their fees this is why they claim to be the dogecoin killer you can just do a lot more with it moving on how did they get started well in august of 2020?

A synonymous developer called Ryoshi started the project as an experiment in community governance meaning a test of how a community could decide on changes now an anonymous friend helped Ryoshi set up the smart contract token and also invested 10 ethereum in an ethereum and chib pair on uni swap this meant that people could give uni-swap some ethereum and actually buy Shib again check out our articles on liquidity pools and how automated market makers work if you’re super curious about how all this stuff actually works anyways?

Around mid-march of 2021 elon musk made a tweet about getting a shiba inu dog which somehow caused the price to increase by 300 percent something interesting that the shiba inu developers did was give half of literally every sheep token out there to vitalik buterin who created ethereum they knew his wallet address and they literally just sent him a ton of sheep tokens many say this is for advertising purposes so that the developers could go hey look vitalik owns some of our tokens then that means he believes in it when in reality, you can send him any of your tokens you want and it doesn’t necessarily mean that they bought it eventually vitalik took some of these shiba inu tokens sold them and then donated the money that he got to charity the rest of the tokens that he didn’t sell around 90 of what he was given he burned burning a token is a phrase used whenever a person sends their tokens to a wallet that nobody else has access to meaning that those tokens are gone forever here’s the important part though vitalik burned around 6.7 billion dollars of shiba inu tokens.

Next up one of the unique things that we can do, since Shib is an ethereum token is to offer holders rewards for doing certain things with it for example Shiba swap actually gives out rewards for people who provide liquidity to specific Shiba Inu pairs they call providing liquidity DIGGING. Whenever you provide your tokens for traders to use, UNI swap has to give you something back to prove that you actually have ownership of that liquidity pool what they give you, is called liquidity pool tokens.

Why is this important? Well, Shiba swap actually rewards users who take their liquidity pool tokens and lock them up this way we know that the liquidity will be there for a while, now technically you can withdraw your locked tokens at any time so I’m not sure why they don’t just reward all liquidity providers maybe you can answer in the comments below. However, when you stake or lock up your liquidity provider tokens they call this burying. When you bury your LP tokens you start to earn bones. Now bones are simply just another ethereum token that is a governance token for Shiba swap this means if you hold one bone you get one vote on changes that happen to the project most people earn them and then immediately sell them but some people buy and hold them now this is where it starts to get weird you can actually bury and stake these bones too but that’s just too deep for this article see what i did there the reality is that they are inflationary in the beginning so any economic students know what that means for the price it’s gonna go down this isn’t financial advice though since you’re still reading this article I’m gonna let you in on a tiny secret about providing liquidity. If you create a project and the price of your coin greatly increases in price and you still hold some of that project’s coin you might be thinking wow we should cash out the problem is that if the liquidity is low when you trade your tokens on UNI swap, you’ll crash the price unless you can get other people to provide liquidity then when you dump a bunch of tokens at once the price doesn’t crash as much this way you can sell more of your tokens at a higher price.

Now I might post an entire article about this because this topic definitely applies to coins and tokens other than Shiba Inu anyways just keep all this in mind if you’re interested in providing liquidity to sheep I was also going to mention a little bit in this article about Shiba Inu NFTs but that part of the project isn’t completed yet so, I don’t really want to talk about it now there are a few of the things that I do want to talk about in this article. The first one is let’s talk about those articles that say what if sheep goes to one cent or even more daringly? what if sheep goes to a dollar? Now I’m not here to say that that will not happen but I am here to clarify what it would take for that to happen. First of all market cap is a term used to compare cryptocurrency assets and is generally used to describe the average price of each coin you get this number by multiplying the current price of the asset by how many circulating assets there are right now the Shiba Inu token is worth around $0.00005 and the market cap is $21 billion this means if the price goes to one penny that means the total market cap would be four trillion dollars which is over the total amount of all money in every cryptocurrency ever including bitcoin if it goes to one dollar that would mean the market cap is 400 trillion which is way more than every house in the entire united states put together. Again I’m not saying this is impossible but I want to give you the clear facts and let you decide.

The next thing I want to talk about is all-time highs since Shiba Inu token has been hitting all-time highs quite a bit lately. Did you know when a coin or token hits a new all-time high? It means that everyone holding the coin is in profit think about that it means you’re assuming everyone out there is willing to hold on to their profitable asset even those that probably need money today to pay their bills anyways it’s difficult to hit all-time highs as consistently as Shiba Inu has so, make sure that if you invest that it’s for a good reason. As I personally know many friends who have invested only because they think the price will go up it seems to me that too many people are trying to make money without actually creating value and that usually results in a big crash but I’m not saying that is what will happen just restating what happens in history the last thing I wanted to share with you is a little psychological and it’s that many developers will make a ton of tokens out there so that the price is very small even if there’s a lot of money in it. The Shiba Inu token has $21 billion in it and the price is still fractions of a fraction of a penny don’t be fooled by these tricks. The percentage change to go from one penny to two penny is just as much to go from a hundred dollars to two hundred dollars even though your brain thinks that it’s more difficult and more space to cover since the numbers are bigger. It’s very unlikely that Shiba Inu would ever hit a dollar and if it hits one penny we can be sure that it would be in the news since it would have a higher market cap than tesla which just hit 1 trillion dollars and is creating massive value for hundreds of thousands of people in the world.

Anyways hopefully now you have a better understanding of what the Shiba Inu token is and how it works if you’re interested in how you can earn money by using decentralized finance technology and you’re a beginner you might want to check out coinglid.com for our free guide you can also find our weekly newsletter and some other cool projects that we’re working on as well thank you guys so much.

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