Shiba Inu is one of the most famous meme coins today, attracting the attention of millions of investors around the world. But what is behind that popularity? Is Shiba Inu just a temporary craze or a potential investment asset?
Let's explore with AZcoin the risks and profits when investing in SHIB.
What is Shiba Inu?
Shiba Inu is a meme coin created on the Ethereum blockchain in August 2020 by an anonymous developer known as Ryoshi. Inspired by Dogecoin, Shiba Inu's mascot is the Shiba Inu dog from Japan. The coin was designed to rival Dogecoin and has since developed into a substantial cryptocurrency ecosystem.
Key events and developments of Shiba Inu
Below are the major events and developments of Shiba Inu (SHIB) since its launch:
Vitalik Buterin’s Involvement: During Shiba Inu early days, 50% of the token supply was sent to Ethereum's creator, Vitalik Buterin. In May 2021, he donated 10% of his SHIB holdings to COVID-19 relief in India and burned the remaining 40%, which significantly impacted SHIB’s price.
ShibaSwap Launch: ShibaSwap is a decentralized exchange developed by the Shiba Inu team, allowing users to trade SHIB and other tokens and stake SHIB for rewards.
Shibarium Launch: Shibarium, a Layer 2 scaling solution, aims to enhance Ethereum’s scalability and reduce transaction fees, although it currently has a low total value locked (TVL) of around $1.2 million.
Shiba Inu Incubator and The Metaverse: Shiba Inu is also working on projects like the Shiba Inu Incubator to support NFT art and The Metaverse to expand its influence into virtual worlds.
Recent Developments: In April 2024, Shiba Inu raised $12 million to develop a new Layer 3 solution focused on privacy and legal compliance.
Risks and profits when investing in SHIB
Investing in Shiba Inu (SHIB) can bring both profits and risks. Here are some key points:
Profits
High potential for price appreciation: Shiba Inu has seen a strong price increase, with a gain of more than 40 million% in 2021. If this trend continues, investors can reap huge profits.
Developing ecosystem: Shiba Inu is not only cryptocurrency but also has its own ecosystem with products such as ShibaSwap, LEASH and BONE. This can boost the value of SHIB in the future.
Strong community: Shiba Inu has a large and enthusiastic community, which can help maintain and increase the value of this coin.
Profits
High price volatility: The cryptocurrency market in general and Shiba Inu in particular are very volatile. Prices can rise sharply but can also fall sharply, causing large losses for investors.
Market risk: Shiba Inu has lost nearly 40% of its value, causing huge losses for investors. About 424 trillion SHIB worth over $7 billion has fallen into a state of loss.
Lack of stability: As a meme cryptocurrency, Shiba Inu can be affected by factors unrelated to its actual value, such as social media trends or community interest.
Basic information about Shiba Inu (SHIB)
Technical analysis
Token Name: Shiba Inu
Ticker: SHIB
Blockchain: Ethereum
Token standard: ERC-20
Smart contract: 0x95ad61b0a150d79219dcf64e1e6cc01f0b64c4ce
Token type: Utilities
Total supply: 1.000.000.000.000.000
Circulating supply: 589,270,406,494,934 SHIB
Volume 24h (09/08/2024): $295,608,250
Token Allocation
Shiba Inu (SHIB) token distribution is done in the following main parts:
50% of the total supply (500 quadrillion tokens) has been deposited into the Ethereum “burn” wallet.
5% of the total supply (50 quadrillion tokens) distributed to the founding team and early stage investors.
5% of the total supply (50 quadrillion tokens) retained for community incentives and marketing activities.
40% of the total supply (400 quadrillion tokens) is distributed to provide liquidity on decentralized exchanges such as Uniswap.
Shiba Inu Exchange
Shiba Inu (SHIB) is available on many leading cryptocurrency exchanges such as Uniswap, Binance, Coinbase, Kraken,... making it easy for users to buy, sell and exchange this token.
SHIB token storage wallet
To store SHIB tokens, users can use an Ethereum (ERC-20) wallet since SHIB is a token based on this platform. Wallets such as MetaMask, MyEtherWallet and Trust Wallet all support SHIB and allow for easy management of ERC-20 tokens.
Future Potential of the Shiba Inu
Shiba Inu (SHIB) has proven itself to be one of the most prominent meme coins in the crypto space, thanks to its popularity and strong community support. Known as the “Dogecoin killer,” SHIB has attracted a lot of attention from both retail and institutional investors. Similarly, new projects like Rizz Monkey are also vying for attention in the meme coin market.
Potentially, SHIB could continue to benefit from the growth trend of DeFi and NFT projects, especially with the development of ShibaSwap, its DEX platform. According to data from CoinMarketCap, SHIB has seen significant growth in value and trading volume, with a market capitalization of around $5 billion by August 2024.
However, SHIB relies on community excitement and does not have a strong technological foundation like mainstream projects. SHIB's high price volatility can lead to large losses, as CoinGecko data shows volatility of up to 1000% during bull runs.
Therefore, while SHIB may offer attractive profit opportunities, investors need to carefully consider the risks and not invest more than they can afford.
Conclusion
Hopefully, with the information that AZcoin has compiled above, you have an overview of Shiba Inu and the potential risks when investing in this coin. The cryptocurrency market is extremely volatile, so always research carefully before making an investment decision.