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What is the story behind Shiba Inu (Doge killer)?

What is the story behind Shiba Inu (Doge killer)?

  • 6 February 2022
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Created in August 2020 by a founder called Ryoshi, Shiba Inu takes its moniker from the cuddly dog of the same name. And don’t confuse it with the similarly canine-themed Dogecoin, which features the same breed as its mascot. Instead, Shiba Inu calls itself a “Dogecoin killer.” Let’s talk about what is the story behind Shiba Inu.

Like many other cryptocurrencies, Shiba Inu operates on a decentralized computer network running a database called the blockchain. This blockchain database tracks and manages the crypto coin, verifying transactions and recording every transaction that occurs with it. So the database ends up being a long-running record of the movement of the cryptocurrency. Specifically, Shiba Inu runs on the Ethereum blockchain, offering the safety and functionality of that platform.

Shiba Inu trades for just fractions of a penny. In November 2021 one coin traded for less than $0.00005, so about 200 of them equaled one cent. Despite the minuscule price, the value of all Shiba Inu coins was more than $26 billion, due to the approximately 549 trillion in circulating supply, according to CoinMarketCap. It has nearly 1 quadrillion authorized coins. However, about 40 percent of those coins were irrevocably “burned” by Ethereum co-founder Vitalik Buterin, meaning that they’ve effectively destroyed and no body cannot use it again.

Shiba Inu spiked in price in September 2021, when it added to the Coinbase platform.

What is the story behind Shiba Inu: How did the hype about Shiba Inu begin?

The hype surrounding the meme coin was triggered by Tesla founder Elon Musk, among others. He tweeted a picture of his puppy, also a Shiba Inu. But Ethereum co-founder Vitalik Buterin also fueled the hype when he gave his SHIB tokens to a fundraising project. He donated 10% to an Indian crypto relief fund and burned the remaining 90% of the tokens, removing almost half of the supply from the market. Currently, there are just over 549 trillion tokens still circulating. Buterin is thus the largest donor to the Covid Relief Fund, which the crypto scene had set up for India to deal with the Covid crisis.

What is the story behind Shiba Inu: What does Shiba Inu do?

Shiba Inu is really divided into multiple tokens that help the entire cryptocurrency ecosystem function:

  • SHIB – This is the foundational Shiba Inu currency that can trade and use as a medium of exchange.
  • LEASH – This token is limited to 107,646 units, making it the most limited of the Shiba Inu-related coins. It provides staking rewards for those validating transactions in the cryptocurrency.
  • BONE – This token has 250 million units, and it’s used to allow those using Shiba Inu to vote on various proposals.

Shiba Inu also has other aspects of a community, including ShibaSwap, its own decentralized platform for trading coins, and Shiboshis, a type of non-fungible token (NFT).

The cryptocurrency continues the riff on its canine-themed coin across its ecosystem, including the crypto’s white paper, which founders call a “WoofPaper.” Meanwhile, it refers to those who own and support the coin as its “Shib Army.”

What is the story behind Shiba Inu?

According to its official website, SHIB was created as an “experiment in decentralized spontaneous community building” by pseudonymous developer Ryoshi (which means “fisherman” in Japanese).

Ryoshi maintains that they are a “nobody” and “replaceable.”. They argue: “With Shiba, we have from the beginning made very clear that no-one is in charge. There is no man accountable, no person responsible and no entity has the keys to the kingdom.” Ryoshi also claimed as of May 2021 that “to this day I own 0 SHIB.”

Accordingly, the Shiba Inu “woofpaper” (whitepaper) poses the question, “What would happen if a cryptocurrency project was 100% run by its community?”

Alongside SHIB, Ryoshi has also created the “Dogecoin killer” token LEASH, albeit in limited quantities, while BONE launched alongside the ShibaSwap decentralized exchange (DEX).

A total of 1 quadrillion SHIB was minted, and the anonymous developers behind Shiba Inu sent around half of the total supply, just over 505 trillion SHIB, to the address of Ethereum co-founder Vitalik Buterin. The rationale, Ryoshi explained, was that “there is no greatness without a vulnerable point and as long as [Buterin] doesn’t rug us, then SHIBA will grow and survive.”

What is the story behind Shiba Inu: A joke to a coin

Buterin subsequently burned 410.24 trillion SHIB—90% of his holdings, then worth around $6.7 billion—and donated the remaining SHIB to charity, arguing that were he to do anything with the tokens he gifted, it could cause unnecessary speculation.

During an episode of the Up Only podcast, Buterin explained the technical process he went through to access and burn the SHIB tokens, which involved buying a new laptop to complete the transaction. “The scary part,” he said, “is this is more money than I’ve ever had.”

Of the $1 billion worth of SHIB he donated to charity, $100 million in the stable coin USDC subsequently returned to Buterin, to donate to “higher-risk higher-reward covid science and relief projects worldwide.”

The astronomical figures bandied around in relation to a dog-themed meme coin may seem ridiculous. But Dogecoin considered a “joke” cryptocurrency before it became 2021’s breakout coin and the talk of fans like Mark Cuban and Elon Musk. Shiba Inu is already on a similar trajectory. At times the cryptocurrency has entered the top 10 coins ranked by market cap and even passed Dogecoin in the rankings, propelled by listings on major crypto exchanges such as Binance and Coinbase.

Is Shiba Inu a good investment?

Shiba Inu has risen substantially during its brief existence, but that alone doesn’t make it a good investment. Rather than looking at the price gains and falling into the fear of missing out, it’s vital to understand what you’re buying and why it may or may not rise in value. In the case of most cryptocurrencies, they don’t have back by the assets or cash flow of an underlying business.

That backing by assets and cash flow is something that differentiates a traditional investment from a cryptocurrency. With a stock, you’re investing in the future of that business, so if it does well, your investment will do well over time. And you have a legal claim on the business, too.

On the other hand, with cryptocurrencies such as Shiba Inu, your investment don’t have back by any asset or cash flow at all. The only way you make money is if someone comes along and is willing to pay you more for your coins. So the key driver overtime of cryptocurrency is optimism and speculation. Traders win when they can get someone else to buy a cryptocurrency for more, or what’s calling the greater fool theory of investing.

Shiba Inu price and market cap

If the well of traders runs dry, then they won’t keep running into the market to push up the price. This speculative nature keeps legendary investors such as Warren Buffett away from crypto.

Finally, there’s the issue of Shiba Inu’s price, which is tiny. Some traders see it as a type of crypto lottery ticket. Because they can afford, for example, 1 million of these coins (at a cost of $50). Like with penny stocks, they think that if the coin just went up to one cent, they’d make a lot of money. Or even if Shiba Inu went to where Dogecoin was trading, they’d cash in their chips.

While the coin’s price may eventually reach the moon – the odds against it are astronomically high.

Where can you buy SHIB?

SHIB can purchase via exchanges such as Coinbase, Binance, Huobi Global, and OKEx. It also trades on decentralized exchanges (DEXs) such as Uniswap, 1inch, and 0x. At Coinbase, you can buy SHIB directly using USD; other exchanges offer trading pairs with Tether (USDT), Binance USD (BUSD), or Wrapped Ethereum (WETH).

SHIB’s price jumped in May 2021, soon after being listed by Binance following apparently immense user demand. At the time, Binance CEO Changpeng “CZ” Zhao tweeted that the exchange “ran out of ETH deposit addresses due to SHIB today” and that it had “never happened before for any other ERC20 coin.” However, he also cautioned that he was “not endorsing it”. And that he considered it “super high risk.”

Some have voiced concerns about the SHIB listing. We follow users. There is a large number of users demanding it, to the point where we ran out of ETH deposit addresses due to SHIB today. Never happened before for any other ERC20 coin.

The future of SHIB

What is the story behind Shiba Inu and what’s the future of it? Shiba Inu’s developers continued to build on their commitment to a project that is “100% run by its community”. In December 2021, the devs announced the first iteration of Doggy DAO, a decentralized autonomous organization aimed at handing over control of the project’s ShibaSwap DEX to the Shiba Inu community.

The first iteration of the DAO will enable the Shiba Inu community to vote on which crypto projects will add to the DEX’s liquidity pools. And how rewards in its BONE governance token will distribute among them.

SHIB’s meteoric rise has made some people very rich indeed; one wallet saw its holdings rise from around $8,000 to over $5 billion in 400 days. But for all that, it remains a “joke token” propelled by retail investor sentiment. It’s a similar phenomenon to the WallStreetBets movement that saw Reddit traders “ape in” to stocks such as GameStop. And AMC because it amused them, or Crypto Twitter snapping up stocks of tungsten cubes.

Institutional investors, meanwhile, want nothing to do with meme coins and tokens; one exec working on institutional crypto custody told Decrypt that “zero” clients are looking to allocate a portion of their portfolios to SHIB.

That might not matter if this new wave of meme-drive retail investment turns out to be the future of finance. And not—as some caution—a herd-driven bubble akin to the tulip mania of the 1600s. “If people care enough about a joke,” the exec pointed out, “it becomes real.”


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