Perhaps DogeCoin remains undisputed as the foremost of the memecoins, yet the new Ethereum-based token Shiba Inu has been flexing its muscles lately as a successor for the highly controversial Dogecoin. This happened while only a few people knew about what is SHIB and where did it come from?
Sharply hitting a peak of 0.73 USD last week is a long way from the 0.01 USD since January, DOGE has certainly achieved a tremendous success in 2021. However, a new coin called SHIB has stolen the spotlight in the past few days with an incredible success carried out by an explosive growth in value, one that Binance’s CEO has called “super high risk” for investment purposes.
What is the Story behind SHIB?
The Shiba Inu or as shown in currency codes as SHIB, is a ERC20 token based on the Ethereum network. One might think of it as a shameless copy of the Dogecoin since both refer to the indigenous Japanese breed of dog Shiba Inu, yet SHIB`s achievements must not be taken lightly.
Based on the data provided by CoinGecko, Shiba stands at 0.00002858 USD (prices correct at the time of writing this article) with an approximate increase of 39000 percent, and only 1500 percent for the past week. Despite the lack of placement in the rankings of CoinGecko for SHIB, CoinMarketCap has estimated a staggering value of 11 billion USD, placing it as the 20th cryptocurrency in the world.
The Explosive Price Hike of SHIB
Since 31st July 2020, SHIB has had an astonishing 2 million percent growth which comparatively speaking is higher than both Bitcoin and Ethereum.
For a token that appeared out of nowhere, these figures are amazing to say the least. Despite lacking the 64 billion USD worth of Dogecoin, Shina Inu has had relatively more achievements in its short period of existence. Altogether, according to CoinGecko, Doge has had a 687% increase for the last month followed by a rough 14% in the last week. By the looks of it, the investors are seeking the same rapidly profitable experience of Doge in the last year.
Since being listed on the Binance, the high demand has been the primary reason ramping the price much higher than expected causing a shortage for ETH payment request address, according to the tweet put out by Binance`s CEO, an unlikely phenomenon that had never occurred before.
Yet despite Binance taking its fair share of the skyrocketing trade volume, the CEO of the cryptocurrency exchange has pointed out the volatility of SHIB and the possible high risk in his twitter:
“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. Not endorsing it. Super high risk. NFA.”
What is SHIB and how it started
Besides being an Ethereum-Based memcoin and a direct competitor for Dogecoin, what is Shiba Inu? According to the official website, SHIB is an “experiment in decentralized spontaneous community building,” and is the first of many planned dog-themed coins, as a token, it fuels the fire for the whole ecosystem. Also it is the first enlisted in ShibaSwap, the decentralized exchange for cryptocurrency. Developers state that half of the resources within the Uniswap protocol and the other half has been burned, meaning that there are no whales controlling the market behind the curtains. LEASH is another released token, though in limited quantities, it has experienced great earnings. Also BONES is set to be released as the Dogecoin killer in the decentralized ShibaSwap. There will even be a token by the name of Woofpaper, that the developers will provide details for in the future.
Total Worth of Shiba Inu
The unknown developers have mined a total of 1 quadrillion SHIBs and have sent more than half to Ethereum founder Vitalik Buterin. The developers view these tokens as burned or off market with the hopes of boosting the trade value, yet Buterin still has access to the tokens and has not burned them yet.
Surely you will not be alone in finding all this ridiculous, but we have to remember how before becoming 2021`s top token and being supported by Elon Musk and Mark Cuban, Dogecoin was also a joke cryptocurrency. Can Shiba follow the same path? At least in the massive gains it has had we could say so.
Shiba Looking to Repeat the History
Thanks to celebrity support and also numerous redditors predicting the 1-dollar price, Dogecoin has had a sharp growth.
Shiba`s official website states that the ERC20 token as the Dogecoin killer will not take long to move past DOGE in value.
Should You Invest in Shiba Inu
The tempting attempt to become a millionaire by investing in Shiba will surely grow harder as the price of SHIB goes up. With a current market value of 11 billion USD, to reach a profit of ten folds from the investments of today, the market value must reach 130 billion and subsequently dethrone BinanceCoin (BNB) as the third cryptocurrency in the world. All leading to the conclusion that a fierce battle must be won with powerful competitors.
Why the Rapid Price Hike?
For the most part, the deceiving hoard of investors looking for the next Dogecoin can be said to be the primary cause for the rise in price.
Even in the last 24 hours Shiba has had a noticeable rise. According to CoinMarketCap, SHIB stands at 0.00002885 USD while being at 0.0000006 in April as compared with Dogecoin standing at 0.51 USD now whilst being at 0.005 in first quarter of the year.
All that said, Elon Musk`s twits have also been highly effective. After jokingly saying he was looking for a Shiba Inu dog on twitter, a massive hoard of investors rushed to buy DOGE with such force that Binance quickly listed the token on Monday leading to a 260% rise. Other Chinese exchanges such as Huobi and OKEx also listed Shiba.
What Does the Future Hold for Shiba
Shiba proceeded to shock everyone today with the massive 1500% increase in 7 days.
It is too difficult to make any predictions for the future, for all we know, this could be another one of the infamous Pump and Dumps that have happened in the past. According to the charts, we see that having suffered a 35% fall, the price is slowly gaining back. With the continuous trades of low quantities we can expect the continuation of growth, yet falling below 0.000027 could call this prediction null.
Conclusion
Generally speaking, investing in cryptocurrencies, decentralized financial tokens and finance are high-risk trades since there is no reassurance of absolute success, make sure to be aware of possible hazards and generate tolerance for the possible loss of investments.
Do not forget that fluctuations are an inherent part of the market, therefore your investments can go up and down at any rate. As always, try not to invest in something you do not have sufficient knowledge for. Also, make investments with an amount of money that there is no urgency for.
What do you think about Shiba Inu? Can this memecoin dominate Dogecoin? Share your opinion with us and don’t forget to follow us on twitter for cryptocurrency prices and all the latest news.
