Shiba Inu was the most popular crypto in 2021 surpassing bitcoin with 43 million more views. Shiba Inu is an Ethereum based altcoin or meme coin created in August 2020 by an unidentified person or group known only as ‘Ryoshi.’ Its name is originating from the Japanese dog breed that can be seen in the Chubu region of Japan. It is also referred to as the meme coin. Despite the reasons that make it so popular, investors should know a few things about it before investing in it.
1. Shiba Inu Is A Token, Not A Coin
Shiba Inui does not own its own blockchain instead uses existing blockchain. It is an Ethereum based cryptocurrency. DOGE and BTC are called coins as they own their blockchains. BAT, Tether, USD Coin, Binance USD are some of the popular tokens using the same concept.
2. Speculative Asset
It is like dogecoin comes under dogecoin. It was launched to compete directly with Dogecoin as a joke. The crypto has now grown into a multi-billion dollar crypto project.
3. Dogecoin Killer?
It is claimed by Shiba Inu’s official website that SHIB is a Dogecoin killer. The other coins using the same theme are Floki Inu, Doge Dash, and Dogelon Mars, but they are competitive like Shiba to Dogecoin. Even dogecoin is equal to Bitcoin, it has a shortcoming in features like smart contracts where Shiba has smart contract capabilities to compete with the Dogecoin and becomes Dogecoin killer.
4. Founder Is Not Known
The founder of the Shiba Inu is only known by the pseudonym Ryoshi, they could be a single person or a group. Other than that the world does not know anything about a founder like Satoshi Nakamoto, creator of bitcoin.
5. Multi-token Ecosystem
The Shiba Inu ecosystem comprises three tokens namely Shiba Inu (SHIB), Leash (LEASH), and Bone (Bone). The most famous token in the Shiba Inu ecosystem is SHIB.
6. Supports Defi
Shiba Inu supports smart contracts through users can lend and stake them. The recurring fee is the passive income of Shiba Inu.
7. Elon Musk-driven
The Elon Musk positive tweet about Shiba Inu has driven the Shiba Inu to reach 300%.
8. Utility Driven Ecosystem
The Shiba Inu is considered that it has reached this peak due to hype and sentiment. The other thing that can consider in Shiba Inu is that it supports NFTs and Defi-platform in ShibaSwap. ShibaSwap is aiming to provide a secure environment for cryptocurrency trading.
9. Volatile Penny Cryptocurrency
The lack of regulation and volatile nature of the cryptocurrency market it has a high risk to invest in them. Even the Shiba has reached 550 trillion total supplies and has a market value above $19 billion, the altcoins or meme coins have an additional challenge and are listed with additional caution in exchanges making them an uncertain crypto asset. So it is required personal deep research before investing in this high-risk asset.
10. The Vitalik Connections
The interesting story is that Shiba Inu creator Ryoshi had sent 50% of Shiba Token to Vitalik Buterin a co-cofounder of Ethereum. Buterin donated more than 50 trillion Shiba Inu coins to a COVID-19 relief fund in India.
The Shiba Inu may be grown for any reasons like volatility, features like smart contracts, Elon Musk tweets. It is better to do your own research before investing in a new crypto asset.