CRYPTO NEWS AGREGATOR
Wed, Oct 6, 2021 10:21 PM by Dennis Y.

Shiba Inu Coin News and Its Controversial Backstory

Shiba Inu News

Let's take a look at the Shiba Inu Coin News. Today, Twitter, Reddit, and other sources may mention some dog-related coins. But are they worth our attention? Let's find out if Shiba Inu Coin has got any useful features, And what does this have to do with Elon Musk?

Just recently Shiba Inu Token became 1 year older. Quite humble even by crypto norms. But the history of this undertaking is full of ups and unexpected plot twists, which we will tell you about now.

Shiba Inu Coin News: What Is SHIB Really is?

The coin was launched in August 2020, when the crypto winter was followed by a real cryptocurrency summer.

The mysterious creator of Shiba Inu Coin, Ryoshi, decided to attract attention using the name of another famous project, Dogecoin. 

This and other attempts of hype on loud names, again and again, prove their effectiveness among wide masses to the delight of investors.

The new token was positioned as a "Dogecoin killer," although in fact, they have little in common. Its main goal is to surpass Dogecoin, the favorite coin of Elon Musk's, in terms of capitalization.

The developers of Shiba Inu claim to have been encouraged by the example of the Reddit community WallStreetBets, which artificially inflated the value of shares of GameStop, AMC, and other loss-making companies.

Shiba Inu aimed to become Ethereum (Ethash algorithm) counterpart to Dogecoin. Dogecoin is based on the Sсrypt algorithm.

Shiba Inu and SHIB token are part of a pack of dog cryptocurrencies, along with Baby Dogecoin, Jindo Inu, Alaska Inu, Akita Inu, Dogeswap, DogeFi, and Alaskan Malamute Token. These low-value tokens (that's what people really call shitcoins for a reason) attracted investors who missed Dogecoin's temporary jump from 0.0002 to nearly 0.75 USD.

Shiba Inu Coin News: What's Special About This Coin?

The Shiba Inu website invites dog-inspired artists from around the world to contribute to the "Shiba art movement" as they bring the Shiba Inu community to the NFT marketplace.

The SHIB's authors have also created a campaign using Amazon Smile to collect donations to save real, live Shiba Inu dogs with the Shiba Inu Rescue Association.

But the most important news regarding Shiba Inu is not its creation or X's from the coin pumps, but Vitalik Buterin's decisive act regarding this one.

The Ethereum co-founder got rid of significant amounts of Shiba Inu, AKITA) and Dogelon Mars donated to him. He donated the funds to charitable organizations.

At first, he sent almost 50 trillion AKITA (which roughly equaled more than $400 million) to Gitcoin.

Buterin's next step was to donate over 50 trillion SHIB (over $1 billion) to the COVID-19 pandemic fund in India (founded by the creator of the Polygon project). On April 26, Buterin donated $600,000 in cryptocurrencies to the fund.

GiveWell, the Methuselah Foundation, and the Machine Intelligence Research Institute were also recipients of the funds. Buterin transferred the proceeds from the sale of meme-tokens to them. He did this by pooling these assets on Uniswap. He also used a wallet he owned on Coinbase.

The creators of the meme-tokens indicated in the white paper that they had partially "burned" them, sending Buterin half of the issue. In particular, his public wallet held 505 trillion SHIB (more than $13 billion at that moment), which is more than half of the quadrillion coins intended.

Etherscan

Source: Etherscan

As a consequence of Buterin's decisions, the prices of Dogecoin meme tokens crashed. The lesser-known ones among them almost or completely collapsed in price.

Meme coins crashed

Source: Cryptopotato

It is possible that Buterin by his actions decided to normalize the situation with commissions (gas), which reached new anti-record levels due to the hype around meme-tokens. 

Because Shiba Inu is an ERC-20 token, the hype in the network around it and its likes has led to the rapid growth of commissions in the blockchain of the second most capitalized cryptocurrency. The protocol has become one of the top 4 gas consumers.

A regular transaction on the ether network may reach $85, for a swap on Uniswap - $250. And that's not the limit.

Shiba Inu Coin News: The New Life of the Token

In June 2021, cryptocurrency exchange Coinbase Pro launched trading of Shiba Inu (SHIB).

Following the announcement of the listing on Coinbase Pro, the price of Shiba Inu soared 22%. 

In September, trading, transferring, receiving, and storing SHIB became available on Coinbase.com and on the platform's Android and iOS apps. Following the news, the price of Shiba Inu jumped 35%.

The creators of the meme token aren't focusing only on it. They also created Shibaswap, the decentralized exchange (DEX). It raised $1.5 billion in a week, with the volume of blocked funds (TVL) at the platform reaching $1 billion in just the first day of operation on July 6.

The growth of funds on Shibaswap was due to the high annual interest rates (APR) from yield farming. It works in the following way: a user transfers his funds to a specialized platform and opens a deposit. On this deposit, the platform pays interest in its own tokens. In this way, the traders gather their yield.

Initially, in some pairs on this DEX, the annual yield reached 50,000%. This is due to the low liquidity of the service at the start and the high issue of tokens that users earn as rewards. Over time, this value dropped below 700%. It is highly likely that yields will continue to fall.

The reliability of the Shibaswap service remains in doubt. Users of the media platform Reddit questioned the technical quality of DEX. Service DeFiSafety rated the reliability of this exchange at 35% (a required rating should not be lower than 70%). Also, low reliability can embody in a scam when all funds of users of some decentralized exchanges can be withdrawn to one address.

To prove their good intentions, the managers of Shiba's DEX project have partially solved the problem and also reported that in the future they will block the withdrawal of funds for a certain period of time.

Nevertheless, not everything is so poor with this coin.

Shiba Inu Coin News: Technology and Ecosystem

Many people remember Shiba Inu as a fun token based on Ethereum. But the developers skillfully used the hype and turned their brainchild into a powerful ecosystem.

Well, first, at the moment, Shiba Inu is not one token, but three. In addition to SHIB, there are LEASH and BONE.

BONE is used as a management token, by voting with a coin, users can support or reject suggestions to improve the network on Doggy DAO.

LEASH allows users to earn rewards by supplying liquidity to ShibaSwap.

That's the difference between SHIB and DOGE (the last one is classic crypto for low-cost and fast payments, which vaguely reminds some of Bitcoin features).

Shiba Inu Coin News and Elon Musk: What's the Connection?

A walking source of hype, Elon Musk pretty much accidentally raised this cryptocurrency in the spring of 2021. It seems that the billionaire was quite sincerely trying to add a few cents to the DOGE price when he posted a tweet about buying a Shiba Inu dog. The businessman did not specify whether he was referring to a puppy of this breed or the Dogecoin with the image of a meme dog.

But many traders rushed to buy everything associated with that "hint". Legions of investors soon rushed to the market thinking that Musk was buying up SHIB, which was about to go up in price.

In general, it did go up in price, but due to the efforts of those who invested. That's just when sneaky developers of other coins will take note of it. Shiba Inu will be followed by Baby Shiba, Mini Shiba, Red Shiba, Green Shiba, and dozens of others mentioned above.

SHIB rose 21.1% in one day and 6,750% in two weeks. The daily trading volume of the coin exceeded the values of Polkadot's test network token, Kusama, amounting to $549 million.

But, by the way, there's also a literal fascination with Elon Musk's Shiba Inu. Not a token, but an actual dog.

Thanks to his love of dogs, Elon Musk once again pushed Shiba Floki coin prices up 1309% and Floki Inu prices up 139% in September. He shared the news of a Shiba Inu puppy named Floki in his house. Shiba Inu's price went up 17% that day.

So much for the bubble. By the way, Charles Hoskinson, CEO of IOHK, the company behind Cardano, called the Dogecoin bubble and predicted its collapse, which will lead to tighter regulation of the market. In fact, the same applies to the other dog-related coins of the crypto market.

Shiba Inu Coin News: Price Prediction

The Shiba Inu coin has fallen hard recently, failing to capitalize on any new excitement. On May 10, 2021, the price of SHIB renewed its all-time high, approaching the $0.000033 mark. This was facilitated by the listing of the asset on Binance and Crypto.com.

Shiba Inu's price fell more than 40% from a high of $0.00000986 on June 15 to a low of $0.00000560 on June 22 after the token was crushed by sales that swept the cryptocurrency market. Then was September, 7 low  $0,00000604 with all the crypto market.

Additionally, CertiK, DeFi auditor, announced earlier that the company will be auditing the SHIB token. This move provides SHIB with legitimacy (needed for listing on the exchange), and crypto investors seem to like this news. This appears to be another driver of the temporary price increasing. 

The only revival for the coin was the 2 listings on Coinbase. But as you can see, overall they don't look like really strong jumps. 

Shiba Inu Price to USD

That's the main answer for questions like "Will Shiba Inu Coin reach $1?" Regarding how low Shiba Inu Coin's price is today, it's quite doubtful.

In the nearest future, there is no reason to hope for a significant strengthening of SHIB positions, the coin has no fundamental power. The only factor is Shiba Inu-related crypto news contributes to SHIB volatility. But this rule works both ways. It is possible both to earn and to lose tangibly. So don't consider this content piece as financial advice.

But that's not all the facts about SHIB. Anthony Sassano, the founder of The Daily Gwei, noted that back on August 7, 2020, a certain user invested 10 ETH in SHIB. According to Etherscan, Ethereum was trading at $379.57 at the time of the transaction. In total, the user purchased 15.3 trillion SHIBs, which at the actual price is valued at $528 million.

According to Sassano, the wallet owner was selling tokens but held a significant position in SHIB for a long time.

In response to Sassano's post, a researcher from "The Block", Igor Igamberdiev, wrote that he was "not impressed" and attached a screenshot with data about another wallet. Its owner accumulated SHIB during August-October on the Uniswap exchange. That user purchased 70 trillion SHIB for 37.65 ETH. At the time of writing, the unrealized gain was estimated at $2.4 billion. And then the price collapsed.

Shiba Inu Coin News: Prospects

Shiba Inu appeared as one of the major discoveries of the crypto investor in 2021. The joke project has evolved into an alive ecosystem that continues to expand.

An additional driver is the existence of its own incubator, which helps to solidify startups focused on "Sibanomics".

Bottom line

Shiba Inu is a meme coin with a very controversial history and a mix of dubious and promising prospects.

Whether or not to get involved with it is solely up to you to decide at your own risk (DYOR). We are only interested in it in terms of a vivid story.


The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.

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