What is Shiba Inu (SHIB)? A Beginner Guide to SHIB Coin

The Shiba Inu dog, Kabosu, inspired Dogecoin (DOGE) and sparked a wave of dog-themed cryptocurrencies that captivated millions. Dubbed the “Dogecoin Killer,” Shiba Inu (SHIB) launched in 2020 and quickly became a social media sensation, now ranking among the top meme coins by market cap.

What makes Shiba Inu unique isn’t just its meme status—it’s the growing ecosystem of tokens, DeFi tools, and an active community driving its rise. But how did a meme coin surpass earlier projects on Ethereum? This guide explores the Shiba Inu ecosystem and the reasons behind its explosive popularity.

What Is Shiba Inu Coin?  

Shiba Inu (SHIB) is a popular Japanese hunting dog breed renowned for flushing out small game. But what is SHIB? How could a meme coin created as an experiment gain popularity so fast. How could it overtake many other cryptocurrencies that came before it on the Ethereum blockchain? 

The digital asset may have started as an online joke inspired by Dogecoin. But it has gone on to capture the hearts and wallets of cryptocurrency lovers worldwide. It aims to introduce the control of crypto assets in the hands of the average crypto lover. Besides being associated with the cheerful-looking dog popular with memes, the Ethereum-based token can be used as a digital currency. Some use cases include trading, staking, etc., while bringing greater value to decentralized protocols than centralized counterparts.

History of Shiba Inu (SHIB) 

The Shiba crypto was launched in August 2020 as an experiment in spontaneous community-driven decentralization. By this time, the project’s mascot was already an internet sensation, lending SHIB the playful and light-hearted identity associated with the Shiba Inu dog. 

Who made Shiba Inu?

Shiba Inu was created by an individual or group of people using the pseudonym “Ryoshi.” This is reminiscent of the creator of Bitcoin, Satoshi Nakamoto, further adding another intrigue surrounding the meme coin. And just like Bitcoin’s case, no entity has publicly come out to claim the Shiba Inu coin project. Instead, the project is run by a decentralized community called the “Shiba Army” that actively promotes the token’s ecosystem.  

Despite the secrecy surrounding Ryoshi’s true identity, the Shiba Inu team continues to make significant developments in the project’s ecosystem. It is guided by the leadership team, which includes experts like Shytoshi Kusama. The leadership team operates like a consultative team within a broader community, suggesting and implementing new strategies and features.

Why has SHIB become popular?                                

A fast-growing community of supporters, influencers, and creative marketing is responsible for giving the project a massive reach. It’s combined with a viral rise fueled by social media platforms like X (formerly Twitter) and Reddit. In an unprecedented move, the development team locked 50% of the token’s supply to Uniswap to manage liquidity. They also sent another 40% of the token’s entire supply to Ethereum co-founder Vitalik Buterin. Surprisingly, Buterin burned most of it and reduced its supply, which brought massive attention to the project.  

Like all new ventures within the cryptocurrency space, SHIB had its fair share of skepticism. Many slammed the developers for allegedly trying to ride on the coattails of the successful Dogecoin story. However, by adopting an active and vibrant community-driven approach, the developers rallied massive community support. The developers rallied extraordinary support through hosted rallies, events and shared online memes to spread the word.  

The token’s big break came when mainstream media took notice of the series of viral online moments with endorsements. Influencers, tweets from celebrities, and waves of social media campaigns made Shiba Inu’s popularity surge. SHIB gained traction thanks to creative marketing, strategic burns, and the enthusiasm of loyal shib holders. Despite entering during a bear market, the token’s unique approach and active backing enabled it to stand out in the crowded meme coin space.

Shiba Inu’s initial low price per unit during the launch also made the token affordable among investors and celebrities. They found it comfortable to invest manageable amounts of money compared to other more expensive digital assets. The token’s affordability and growth potential attracted stars that only wanted to join the hype. Last, SHIB managed to garner support from leading cryptocurrency exchanges, including Robinhood, Binance, and Coinbase, thereby increasing the token’s visibility.  

How Does Shiba Inu Work?

Shiba Inu (SHIB) is an ERC-20 token that leverages Ethereum’s robust infrastructure, security, and compatibility with DeFi applications. It interacts seamlessly with the Ethereum ecosystem and supports a range of functionalities across its native tokens and platforms.

• SHIB: The native token of the entire Shiba Inu ecosystem serving multiple purposes, including rewards and paying fees. Launched with 100 billion tokens, it can also be used as a cryptocurrency to send value globally within seconds.
• LEASH: The second digital asset of the Shiba Inu ecosystem is a synthetic asset designed to become a derivative product replicating the price of Dogecoin on the Ethereum blockchain. The LEASH token introduces the scarcity factor that causes its price to rebase to 1000/1 at the cost of DOGE daily at 6:30 AM UTC.  
• BONE: The BONE token, also known as Bone ShibaSwap, is a governance token within the SHIB community. It allows users to stake and earn rewards while participating in the ecosystem’s governance through voting. 
• ShibaSwap Exchange: This ecosystem’s decentralized exchange (DEX) is a non-custodial platform that enables users to trade SHIB with other ERC-20 compatible tokens straight from their crypto wallets.
• Shiba Inu (SHIB) Artist Incubator: The Artist Incubator is another unique element of the Shiba Inu project designed to encourage users to join the NFT ecosystem, which could further monetize meme culture and hype the project. Artists from across the globe only need to submit their work to become a part of the NFT market.

Last but not least, the Shiba Inu project runs a distinctive project that is separate from anything related to blockchain. By integrating the Amazon Smile project, users can donate funds to help save real stray Shiba Inu dogs that need new homes.

What Is Shiba Inu Coin Used For?  

After understanding “what is SHIB,” the following is a fundamental question. “What is Shiba Inu coin used for?” The ERC-20 token serves as a medium exchange for users on the platform when interacting with Ethereum-based DeFi applications. After its launch, Shiba Inu was initially used in the ShibaSwap DEX, where users primarily swapped it with other tokens.

Users can also stake (BURY) SHIB or use it to provide liquidity (DIG) within the ecosystem. This is where the BURY SHIB is rewarded with the tokens staked version dubbed xSHIB. Similarly, users who stake the other Shiba Inu tokens, namely LEASH and BONE, received xLEASH and tBONE, respectively. These are derivative tokens they can use to earn rewards from the platform in different ways, including Swap fees.

While it’s not yet widely accepted as a form of payment, SHIB users can use the token to facilitate payments. This can be between community members, including any retailers or businesses that use it as a means of exchange. In addition to payments, it can also be used for trading, creating and trading NFTs, and participating in metaverse activities. Merchants accepting SHIB employ a special crypto payment gateway that supports or integrates it with other crypto payment solutions. However, due to its limited utility, SHIB is less widely used within the crypto space than pioneers like Ethereum.

What Gives Shiba Inu Value? 

Shiba Inu (SHIB) has established itself as the native token of the Shiba Inu project and the foundation for the ShibaSwap DEX, where users can buy, sell, hold, and trade the token. Several factors working together have helped drive the value of the token within the cryptocurrency community, including the following:  

• Meme Coin Origins: Inspired by the popularity of Dogecoin and its association with the famous dog breed and enhanced community engagement, this led to its tremendous growth within the meme coin community known as the “SHIB Army” that continues to play the integral role of promoting the token and driving its price. 
• ShibaSwap: The project’s decentralized exchange, ShibaSwap, promotes user activity and engagement by providing a platform where investors can actively participate in the lucrative staking exercise for the project’s tokens, SHIB, LEASH, and BONE, and earn passive income.
• Token Burns and NFTS: The project performs regular token burns, where they permanently remove excess SHIB tokens from circulation, which enhances the token’s scarcity and potentially helps to drive the price upwards. Additionally, the development of Shiboshis, pixelated Shiba Inu cartoon NFTs with different traits, is another aspect that increases user engagement and adds to the token’s value.
• Broader Cryptocurrency Market Trends: The value of Shiba Inu is also influenced by other factors like the general improving sentiment of the broader cryptocurrency market, where macroeconomic changes and the potential for regulatory clarity are changing people’s perspective about digital assets. Moreover, the token’s leveraging of the Ethereum blockchain and its impact on network security and smart contract capabilities have also positively impacted the project.

Shiba Inu Ecosystem

The Shiba Inu ecosystem is a decentralized, open-source platform built on Ethereum, anchored by its main token, SHIB. Since its 2020 launch, the ecosystem has expanded to include additional tokens, apps, and utilities aimed at growing user engagement.

• Doge Killer (LEASH) is a rebase token within the project, pegged on the price of Dogecoin, which is highly sought after by investors due to its scarcity model.
• Bone ShibaSwap (BONE) is the governance token of ShibaSwap, the project’s decentralized exchange. It has a total supply of 250 million tokens and enables holders to participate in governance issues.
• ShibaSwap is the project’s decentralized exchange (DEX) and liquidity pool platform, supports token swaps, staking, yield farming, and NFT trading—all directly from user wallets.
  
• Shiba Inu NFTs: The Shiba Inu marketplace features Shiboshis, a collection of 10,000 randomly generated pixel NFTs that offer passive income, exclusive perks, and access to metaverse land. Holders can join the SHIBOSHI Social Club, interact directly with developers, and participate in activities like renaming avatars, which costs $100 in SHIB.
• Shibarium Layer-2: This is a Layer-2 scaling solution for the project, which aims to facilitate faster transactions and lower fees by allowing truncations to occur off-chain, thereby minimizing the user’s processing time and costs.
• SHIB Games: The Shiba Inu games are designed to spearhead the development of the immersive metaverse-based gaming ecosystem. They leverage the Shibarium Layer-2 scaling solution to introduce play-to-earn innovative and engaging games such as Shiba Eternity and the SGIB metaverse.
• The Shiba Inu Community: The ShibArmy is an active social media community operating on platforms like Telegram, Reddit, and X. It promotes the project’s ecosystem and organizes events. The community is involved in charitable donations, collaborations and partnerships, and education awareness.  

Benefits and Risks of SHIB 

Before deciding to invest in Shiba Inu (SHIB) or any other digital asset, you need to clearly understand the potential advantages and disadvantages. 

Benefits of SHIB

1. Strong Community Support: The Shiba Army, the active and dedicated Shiba Inu community, has helped increase awareness, promote participation, and encourage adoption, leading to the token’s popularity. 
2. Potential for High Returns: As one of the leading meme coins increasingly gaining popularity, SHIB offers the potential to yield high returns despite its highly speculative nature, especially during meme coin bull markets.
3. Innovative Use Cases: The Shiba Inu project has several other use cases in addition to being a meme coin. These include lucrative features like the ShibaSwap DEX, where users can trade and earn rewards through yield farming and participating in liquidity pools. 
4. Low Entry Point: Since it’s relatively cheap compared to other cryptocurrencies, new investors find it easy to join the crypto market without poking holes in their wallets.
5. Viral Marketing Potential: SHIB is a dynamic meme-based cryptocurrency that leverages the power of viral marketing on social media, where sharing boosts visibility and attracts more potential investors. 

Disadvantages of SHIB

1. High Volatility: Like all other cryptocurrencies, Shiba Inu is subject to high price volatility, which could lead to financial losses during low times as prices drop without prior notice.
2. Limited Use Cases: At its core, Shin crypto is a cryptocurrency. However, unlike leading digital assets like Bitcoin and Ethereum, technological backing and practical applications are limited. This limited utility in real-world use cases could negatively impact its long-term value. 
3. Lack of Regulation: While there are ongoing efforts to regulate the cryptocurrency market, this is still a work in progress, which causes many individual and institutional investors to slow down. Lack of regulatory clarity increases the risks of fraud and market manipulation, which often leads to trust and integrity issues within the investment community.
4. Community-Driven: Social media visibility and community involvement are the bedrock of the Shiba Inu ecosystem, and maintaining these two aspects may not last forever, leading to speculation about the potential impact of the two values diminishing or declining.

Concerns about Shiba Inu  

While investing in major cryptocurrencies like Bitcoin and Ethereum is considered a highly risky venture due to their speculative nature. Other concerns are lack of a clear regulatory framework, and excessive volatility. Your decision to invest in altcoins and meme coins introduces an extra challenge. That’s mainly because the value of many altcoins is based on followers’ perspective and social media trends. The following are some concerns every potential Shiba crypto investor should be aware of: 

Low Per-Token Price

The most significant concern within the investor community is the relatively low price of the Shiba Inu token. Users would take a long time to feel the impact of any small price appreciation. The token’s ample supply means that price increase must be cushioned by a massive significant increase in market capitalization. This can easily brush off any potential gains. Because of its significantly low price, any impressive price gain leads to the price climbing a fraction of a cent. This means that an investor needs to own millions of SHIB tokens to appreciate the gain. 

Limited Utility and Use Case 

Unlike other cryptocurrencies with solid use cases, the value of SHIB largely depends on speculation instead of clear functionality. The lack of any other use cases for the SHIB may cause some potential investors to think twice. However, it should be noted that the ecosystem has evolved dramatically since its launch. It now incorporates decentralized applications (DApps) that offer additional utility for holders. Moreover, the project’s use of an L2 blockchain that increases scalability and transaction speed could cover and use cases. 

Volatility

Like every other cryptocurrency, the price of the SHIB token is subject to high volatility, which can lead to rapid price fluctuations within short periods. This kind of volatility is a two-edged sword, presenting increased opportunities and risks to investors and traders. This is standard practice within the crypto space but critics believe meme coins are a relatively new class of cryptocurrencies. They opine they are still clouded with an unhealthy amount of speculation.  

Is Shiba Inu a Good Investment? SHIB Price Trends  

Shiba Inu (SHIB) can be a high-risk, high-reward investment. Whether it’s a good fit depends on your portfolio strategy and risk tolerance. Like most meme coins, SHIB is highly volatile and influenced by social media trends, market sentiment, and investor behavior.

Although it hasn’t matched the gains of major cryptocurrencies like Bitcoin, long-term predictions suggest SHIB could reach new highs—especially with growing ecosystem development and token burns.

Factors Affecting SHIB price

1. Market Conditions: The general health of the broader cryptocurrency market directly impacts the price of SHIB, meaning that Bullish or Bearish trends could lift the price or drag it down, respectively.
2. Social Media Influence: The popularity or otherwise of meme coins like Shiba Inu is deeply rooted in social media hype, meaning that a tweet or viral hashtag from a celebrity or an influential figure could trigger price activity.
3. Investor Behavior: The behaviors of retail or institutional investors have a direct impact on the price of Shiba Inu since their investments or divestments cause notable price fluctuations.
4. Technological Developments: Every update of any kind within the Shiba Inu ecosystem has a positive impact on the price, with improvements in utility, technological development, and functionality signaling potential for growth.  
5. Supply and Demand: The balance between the token’s circulating supply and the demand for coins can also influence the price, which is why events like token burns reduce the circulating supply and increase the token’s value as long as the demand remains steady.
6. Regulatory News: The emergence of negative crypto regulation will negatively impact investors by instilling fear, while any positive news or regulatory announcements will lead to automatic price surges.
7. Economic Indicators: Last but not least, cryptocurrency prices react to global economic indicators like fiat currency values and inflation rates since they cause investors to turn to or away from digital asset investments based on the prevailing economic conditions.

It is crucial for every potential Shiba Inu investor to understand and consider the factors we just mentioned. Making an exact Shiba Inu coin price prediction requires some technical knowledge that most users may not possess. Staying updated on the above-named influencing factors can give you greater insight into SHIB’s general trajectory. 

How to Use SHIB

 Shiba Inu (SHIB) is a cryptocurrency that can be used for various purposes within its ecosystem and beyond. It can be bought, sold, or traded on exchanges. Additionally, users can leverage ShibaSwap for staking and liquidity provision to earn rewards. SHIB also allows participation in governance decisions and has been used for NFTs and community engagement.

How to Buy SHIB Tokens?  

To buy Shiba Inu tokens, you need to locate any of the many cryptocurrencies that support them. Moreover, most allow users to buy SHIB using fiat currencies like USD through bank transfers or debit and credit cards. On the other hand, you can buy your tokens by swapping them with other popular digital assets like Bitcoin and Ethereum on most decentralized exchanges.

The following is a step-by-step guide for buying SHIB:

• Step 1. Choose an Exchange: Select a crypto exchange like Kraken, Coinbase, Binance, etc., that not only supports SHIB but also enables you to pay using your preferred payment method
• Step 2. Create an Account: If you are a beginner, you’ll need to sign up for an account on the exchange.” You’ll be asked to enter your email address and provide additional personal information to verify your identity.
• Step 3. Fund Your Account: Deposit the required funds using either bank transfer, credit/debit card, or any other supported payment method.
• Step 4. Buy SHIB: Navigate to the website’s SHIB section, choose the appropriate trading pair, such as SHIB/USD, and place your order, indicating the number of tokens you want to acquire.
• Step 5. Verify and Complete Transaction: Once you’re through, carefully review the details of your order, and when you’re satisfied, click “Buy” to confirm the transaction.

Additional options: In addition to the method mentioned above, you can buy your tokens using Digital Currency Machines (DCMs) available in some locations, where you simply scan your crypto wallet address. Another alternative is to use Decentralized Exchanges (DEXs) like ShibaSwap or Uniswap, where you can trade tokens like ETH for SHIB. However, you must ensure that your crypto wallet is compatible with your selected DEX.

How to Choose a Shiba Inu Wallet

Shiba Inu wallets vary based on user needs like security or simple trading. Beginners should consider factors such as blockchain support, features, and ease of use. Before choosing, note that each wallet type serves different user preferences and purposes.

• Mobile Wallets: This class of wallets is designed for smartphones and is best for people who want to manage their assets on the go. Most are easy to use and have features like wallet integration with DApps and multi-currency SHIB capabilities.
• Desktop Wallets: These are installed on PCs and offer a relatively higher level of security than mobile wallets. They are best suited for anyone who seeks better wallet security or wants to use a larger screen to manage their SHIB tokens.
• Browser Extensions: These are lightweight wallets designed to enable users to interact with blockchain networks from their browsers. They are popular with decentralized SHIB storage as they are easy to integrate with DApps.
• Hardware Wallets: They are physical devices that resemble USBs and offer the highest level of security. Hardware wallets are ideal for users interested in long-term storage as they’re not susceptible to online threats.

What to Consider When Choosing a SHIB Wallet

The following are the factors to consider when choosing a good Shiba Inu wallet:

• Compatibility: Make sure you choose a wallet compatible with your preferred exchange and device. For better accessibility and flexibility across numerous devices, consider a cross-platform SHIB wallet.
• Security: Ensure your wallet offers state-of-the-art security features like biometric authentication, passcode protection, or cold storage for SHIB, as the security of your tokens is paramount.
• Usability: The wallet you choose should have an intuitive, easy-to-use interface that allows you to easily manage your tokens, whether you are a beginner or an expert.  
• Fees: Applicable transaction and maintenance fees can easily eat into your profit base if you are into cryptocurrency trading. Always check out the fees associated with your choice of wallet to ensure they are competitive.
• Backup and Recovery: Choose a wallet that provides easy but secure backup and recovery options in case you lose your device or it gets damaged.
• Customer Support: The best SHIB wallet has a responsive customer support team to help you with any arising issues.

Conclusion: The Future of Shiba Inu  

Shiba Inu (SHIB) offers interesting investment opportunities for anyone interested in trying their hand and harvesting good returns. However, the opportunity comes with some risk, and whether you take it will depend on your risk tolerance.

SHIB has sparked strong interest among crypto investors due to its rapid growth and unique ecosystem. If you’re seeking long-term gains, SHIB could be a potential investment worth considering. Despite concerns, the project shows promising potential within its expanding ecosystem. Whether you’re curious or serious, stay updated on SHIB’s developments and the evolving crypto market.

FAQs                                                   

What blockchain is Shiba Inu on?  

The Shiba Inu (SHIB) is an ERC-20 cryptocurrency built on the Ethereum blockchain. It operates within the Ethereum ecosystem and follows the Ethereum token standards. Moreover, the network aims to improve transaction speeds and scalability through Shibarium, a Layer-2 solution.

How is the Shiba Inu network secured?     

The Shiba Inu (SHIB) project and its entire ecosystem are secured by the Ethereum blockchain, which utilizes a proof-of-stake (PoS) consensus mechanism.  SHIB, therefore, benefits from Ethereum’s security and decentralization                          

Is Shib coin worth anything?  

While SHIB remains volatile like all other cryptocurrencies, many analysts believe it could be a potentially rewarding investment. However, the Shiba Inu developers must work hard to enhance its value and solidify its position.

Does Shiba Coin have a future?

It may be hard to tell whether the Shiba coin has a future since prices are bound to fluctuate. While some analysts believe the token has the potential for growth, whether it comes to pass will depend on investor feelings, market trends, and the overall development of the broader cryptocurrency space.  

Will the Shiba Inu Coin reach $1 in 2030?

According to analysis and several Shiba Inu coin price predictions, the Shiba Inu price is predicted to be between $0.00004156 and $0.00005261 by 2030.                              

How to Sell Shiba Inu?       

The following is a general step-by-step process of selling Shiba Inu:

• Step 1: Choose an Exchange: Choose a reputable crypto exchange that supports SHIB and your preferred payment method.
• Step 2: Register and Verify: Create an account on the cryptocurrency exchange and enter the necessary information for KYC verification.
• Step 3: Deposit SHIB: If you already have Shiba Inu tokens, transfer them to your newly created exchange wallet.
• Step 4: Enter Amount to Sell: Specify the tokens you plan to sell in SHIB or the equivalent in a supported fiat currency.
• Step 5: Select Payout Method: In the space provided, indicate how you wish to receive your fiat currency payout.
• Step 6: Confirm and Sell: Review all your transaction details, and once you’re certain, click “Sell” to confirm the sale.
• Step 7: Receive Payment: You should receive your fiat currency in your chosen account within a few minutes.