What is the Shiba Inu token?
When cryptocurrencies started to gain public attention, the expression “how cute” was probably the last thing that came to mind to describe this new generation of digital assets.
However, as blockchain technology has shown us that almost nothing is impossible in cyberspace, “cute” has finally made its way into the cryptocurrency narrative with the rise of altcoins inspired by man’s best friend.
The Shiba Inu token, also known as the ticker SHIB, was launched in August 2020 by an anonymous person or a group of people under the nickname “Ryoshi”. It is named after the Japanese Shiba Inu dog breed and was originally conceived as a satirical cryptocurrency based on the Dogecoin meme.
In his “woof paper” a pun on the English term “white paper”, a document that explains what a cryptocurrency project is about, the creator of Shiba Inu explains that the cryptocurrency was developed in response to the question: What would happen if a cryptocurrency project was managed 100% by its community?
How Did SHIB Rise to Fame?
With an initial $1 billion contribution, SHIB rose to fame earlier this year when its developers sent 50% of that total contribution to Ethereum co-founder Vitalik Buterin to decommission it.
In reality, it was a way to increase the price of SHIB as they were confident that demand would continue to rise with limited supply.
Buterin, for his part, donated the SHIB tokens he received to different charitable causes around the world, primarily India’s COVID Relief Fund, to which he donated 50 billion SHIB (about $1.2 billion at that time). moment), the largest donation of cryptocurrencies in history.
Another prominent aspect of the Shiba Inu token that has fueled its popularity is its iconic logo, a Shiba Inu. This breed of dog already has a large following due to another cryptocurrency that uses the same image, Dogecoin, and Tesla billionaire founder Elon Musk has mentioned it in his tweets on several occasions.
Last October, Musk posted a photo of a Shiba Inu puppy that kicked off the dizzying rise of the SHIB.
Should you Invest in Shiba Inu?
Cryptocurrencies, due to the highly volatile nature of the market, in general, are a high-risk investment. This makes it very difficult to predict which cryptocurrency projects are here to stay and will be successful in the long run.
Shiba Inu currently has a market capitalization of $23.3 billion. At the beginning of the year, it was trading at $0.000000000077, before reaching an all-time high (ATH) of $0.00008616 on October 28, 2021. Over the course of a year, it has seen a staggering rise of 61846310.5 % and an increase of 24.9% in the last 30 days.
Despite these promising figures, the Shiba Inu is a particularly risky investment and may not be the best choice for you if you are a risk-averse investor.
However, if you are interested in making this token part of your cryptocurrency portfolio, here are some useful things to consider:
On the one hand, the Shiba Inu was created as a parody of Dogecoin, which, in turn, was also a parody of Bitcoin. Both are meme coins that were released as a joke rather than as projects with real utility.
Previous Shiba Inu price spikes were mainly caused by frenzy buying by retail investors who bought the cryptocurrency en masse to increase its price and make a quick buck, motivated by fear of missing out (FOMO).
Main Conclusions
In the world of cryptocurrencies, nothing is certain, especially when it comes to price, whether we are talking about Bitcoin, Dogecoin, or Shiba Inu.
Historical data shows that the Shiba Inu token has seen several spectacular price rises over the last year. Should its support continue to strengthen, there is no reason why its price cannot continue to rise and break new all-time highs (it could even reach $1).
As an investor, you should thoroughly study any cryptocurrency before investing in it due to the nature of the risks involved. Technical and fundamental knowledge of the market is also essential to get the most out of your investment in cryptocurrencies.
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