As of June 2022, more than 19,000 cryptocurrencies have been created. As a comparison, there are just 180 fiat currencies in use. One of the main reasons for the large number of cryptocurrencies is blockchain technology. It allows developers to build and launch new currencies and operating systems with relative ease.
Created by Ryoshi in August 2020, Shiba Inu is one of a number of meme coin currencies. They posed the question, “What would happen if a cryptocurrency project was 100% run by its community?” Often called the ‘Dogecoin killer’, it falls in the category of ‘meme cryptocurrency’.
What is cryptocurrency?
Cryptocurrencies first reached prominence with the publication of the paper ‘Bitcoin: A Peer-to-Peer Electronic Cash System‘, by Satoshi Nakamoto in 2008. They argued they could create a digital currency system based on cryptographic proof, instead of being based on trust, like fiat currencies.
The currency uses cryptography to protect transactions, hence the ‘crypto’ in its name. Nakamoto mined the first block of Bitcoin on January 3, 2009. They created a decentralized, distributed ledger called a blockchain, to store the transactions. The decentralized nature of the ledger means that there are no third parties, like financial institutions or governments, involved in the currency.
The history of meme coins
Bitcoin experienced a lot of price fluctuations and uncertainties around its use. Therefore, many people did not accept it as a trustworthy currency. At the beginning of 2013, two software engineers, Billy Marcus and Jackson Palmer, created a new cryptocurrency.
They wanted to poke fun at Bitcoin’s poor reputation. The currency was based on the Doge meme, which was popular at the time. Dogecoin soon built up a strong following and became surprisingly popular. Its success inspired other developers to create their own meme coins. Today, there are 200 meme coins available for trading.
How does Shiba Inu (SHIB) fit in?
Dogecoin’s popularity raised the profile of meme coins and created a lot of interest in them. Marcus and Palmer created Dogecoin as a joke in response to the volatility of Bitcoin. It was so ironic that it became such a success.
Shiba Inu is an Ethereum-based alt-coin. Ryoshi launched it in August 2020, as an alternative to Dogecoin. Their mascot was the Shiba Inu meme, which was very popular at the time. Its supporters, the SHIB Army, often refer to it as the ‘Dogecoin killer’, because they feel it will eventually surpass Dogecoin in value.
Since its launch, Shiba Inu has indeed become very well known. On October 3, 2021, Elon Musk tweeted a picture of his new pet, a Shiba Inu named Floki. Supporters saw this as a reference to the Shiba Inu currency and sent its value soaring. On October 29, 2021, its market capitalization reached an all-time high of $41 billion. It has since fallen back, but it is a good illustration of how volatile cryptocurrencies can be.
Shiba Inu’s tokens
Ryoshi continued the canine theme when he created the Shiba Inu ‘woof paper’. This document defines what Shiba Inu is. The paper states that the currency is an Ethereum-based ERC-20 token. The Ethereum blockchain hosts it. Therefore, it does not have a blockchain of its own.
Ryoshi divided the currency into three tokens. The first is the currency itself, the Shiba Inu (SHIB). It started with a supply of 1 quadrillion. However, 40% has been put into a dead wallet by its co-founder, Vitalik Buterin.
The next token is the LEASH. This token has a limited supply of 107,646 tokens.
Finally, there are the BONE tokens. They use these tokens for governance and have a supply of 250,000,000.
How to buy Shiba Inu
Investors caution that meme coins show even more price volatility than standard cryptocurrencies. This is because meme coins have no intrinsic functionality. Their value is simply based on their popularity with investors, rather than on any underlying utility. Therefore, Shib Inu’s price has proven to be very unpredictable. Having said that, Shiba Inu coins are still traded, so let’s take a look at how to buy them.
- Decide on which crypto exchange to use — There are a few exchanges, but the best known are Coinbase, Bitfinex, and FTX.
- Register with the exchange, open an account and make your first deposit.
- Place your order for SHIB at the exchange.
- Store the SHIB in a wallet or on the exchange itself.
Nowadays, many casinos accept Shiba Inu as a payment method. It gives you access to crypto games, payment anonymity, safe transactions, and fast and decentralized payments. However, before signing up to a crypto casino, check they accept this payment option.
Shiba Inu’s future
Although this meme coin has had a spectacular couple of years, it proves how volatile cryptocurrencies are. Shiba Inu is not a utility currency, therefore its value is based on its notoriety, which means that it could continue to be volatile in the future.