One of the big hits in the crypto space over the previous year is meme coins. The emergence of Dogecoin has ushered in the creation of a shedload of other meme coins as investors huddle to them in hopes of making good profits.
The famous “doge meme” coin has rallied by over 7,000% in the first quarter of 2021, pulling and enticing quite a lot of investors into the crypto world. Hence, other investors looked for alternative meme coins to invest in since Dogecoin already has competition. Among the colossal meme coins in the crypto market is Shiba Inu (SHIB).
Before proceeding to the main focus of this article, let’s first identify the distinction between a coin and a token.
Coin vs. Token: What’s the difference?
The difference between coin and token isn’t really hugeous but overlooking their distinction can be a major headache in some circumstances. Nearly everyone in the crypto space has confused a coin with a token at some point.
On the fundamental level, coins and tokens are very much alike— they both process payments and represent value. Users can also swap tokens with coins and the other way around. The primary difference between them boils down to utility.
This simple investor vs. trader concept can demonstrate the difference between the two: All traders invest, however, not all investors trade. Many marketplaces accept coins and decline tokens. On the other hand, some blockchain undertakings are only possible with tokens and not with coins.
Blockchain coins that don’t run the blockchain are called tokens. These tokens utilize security, power, and the upkeep of the primary blockchain.
Technically, Shiba Inu (SHIB) is a token from the Ethereum network, and it does not have its own blockchain. Thus, there’s no really such thing as a SHIB coin but only a Shiba Inu token.
Shiba Inu: The Dogecoin Killer
While Shiba Inu (SHIB) is often considered as an alternative to Dogecoin (DOGE), it’s actually primarily designed to be the “Dogecoin killer.”
Dogecoin was born out of the desire to poke fun at Bitcoin by showing that anyone can copy their code. However, since Dogecoin maintains its own blockchain, it doesn’t have the cool upgrades that Ethereum possesses. It does not have smart contracts.
Smart contracts are not just for a cool show-off, but it truly enables the operation of many more things on the blockchain network than just sending money from pillar to post. Ethereum’s smart contracts support the creation of new tokens, which cannot be employed in Bitcoin or the Dogecoin blockchain.
Furthermore, smart contracts facilitate the creation of new applications (e.g., decentralized exchanges) or token swaps. It’s regarded as the Dogecoin killer since there are a lot of things that can be accomplished through it compared.
The Chronicle of Shiba Inu (SHIB)
SHIB is based on the popular Japanese Shiba Inu dog intentionally launched as a joke rather than as a crypto product with real-world utility. Compared to Dogecoin that has been around the crypto space since 2013, this meme top dog crypto was recently launched in August 2020 by an anonymous group called Ryoshi.
Based on the creator’s 28-page whitepaper, the aim of Shiba Inu was to draw away the traditional mindset and the rigid social structure mindset through decentralized spontaneous community building. And, moreover, give back the power to ordinary people. To put it simply, the community can decide on whatever changes they want.
Ryoshi was assisted by a friend to set up the smart contract and invested 10 ETH in an Ethereum and SHIB pair at Uniswap. This means investors could give Uniswap an Ethereum and purchase SHIB.
In March 2021, Elon Mush tweeted, “Shiba Inu!!!” which skyrocketed Shiba Inu’s price to 300%. Interestingly, the stellar team behind SHIB has given half of the tokens they have to Ethereum creator Vitalik Buterin.
SHIB Holder Reward
Shiba Inu offers a reward for utilizing their platform to do certain things they are capable of. For instance, the ShibaSwap grants reward to anyone who provides liquidity to particular Shiba Inu pairs.
Whenever you render your tokens for traders to use, Uniswap gives something as “proof” that you truly have ownership of that liquidity pool— the liquidity pool tokens. These liquidity tokens are locked up to ensure that the liquidity will stay for a while.
The idea of delivering liquidity is referred to as “digging,” and locking up liquidity provider tokens is called “burying.”
Upon burying of tokens, “bones” are earned. Bones are basically Ethereum governance tokens for ShibaSwap. One bone is equal to one vote to changes that might happen to the project. Some investors sell them, while others buy and hold. These bones can also be burned and staked.
Here’s a little secret about providing liquidity.
When you create a project, and the price of your coin greatly increases in price while holding the project’s coin, you might want to cash it out in that instance. However, liquidity is low when you trade tokens in Uniswap, possibly leading to a price crash unless you get other people to provide liquidity.
You need to have people get into your project so that prices won’t crash as much when you dump a pack of tokens at once. This will allow you to sell all your tokens at a higher price.
Will SHIB moon to 1 cent or $1?
MarketCap or market capitalization is the term used to compare cryptocurrency assets and describe the average price of every coin in the crypto space. The average price is obtained by multiplying the price by the number of circulating assets there are.
Currently, Shiba Inu is worth $0.00005, and the market cap is $21 billion. If the price rises to 1 cent, the total market cap will skyrocket to $4 trillion, which is more than the amount of all cryptocurrencies in the space. If the price rises to $1, then that would mean the market cap would increase to $400 trillion, which is way more than every house in the United States collated together.
Shiba Inu has been among the best performing cryptos in 2021, but don’t get fooled. If you would come to think of it, the market cap of Shiba Inu is already at $21 billion, but its price is still a fraction of a penny.
Award-winning analysts believe that this popular dog-themed isn’t among the best stocks to buy. SHIB is highly volatile since most people investing in it merely want to take advantage of the market and earn a good profit, not actually going for value.
Where Shiba Inu heads from here remains unknown. One thing is clear: Shiba Inu’s mooning is very unlikely, but not entirely impossible, though.
