What is Shiba Inu (SHIB)?

What is Shiba Inu?

Shiba Inu is a decentralised ecosystem whose core is the SHIB ERC-20 memecoin. Built on Ethereum, the project includes the non-custodial exchange ShibaSwap. The latter’s functionality relies on the BONE and LEASH tokens.

The project’s community numbers more than half a million members. A cohesive following is a defining feature of Shiba Inu. There is no leader; participants call themselves the ShibArmy.

The community has its own rules. The project must be built from scratch and remain decentralised. According to the white paper, each community member is expected to apply their talents and skills to advance Shiba Inu.

The project’s symbol is a Shiba Inu dog. In this respect, Shiba Inu resembles Dogecoin. However, it differs markedly from its inspiration in technical implementation.

Who created Shiba Inu and when?

The project launched in August 2020. Its creator is a person or group using the pseudonym Ryoshi. Their identity remains undisclosed. The aim was to experiment with forming a spontaneous decentralised community. The founder compares Shiba Inu to bitcoin.

The project stood out for unusual events. For instance, its organiser sent 505 trillion SHIB to Vitalik Buterin. The white paper states that in this way coins were burned.

The remaining tokens were locked on Uniswap in a liquidity pool with ETH. This step enabled anyone on the market, including the creator, to buy tokens freely.

According to Ryoshi, 10 ETH provided by a friend for the project were used to create the pool. After that, the keys that would allow retrieval of the funds locked in the smart contract were destroyed.

At least one other person was involved at the outset. Ryoshi met him at the Devcon conference in Osaka in 2019. He is known to be a successful entrepreneur for whom the sum was insignificant.

How is the Shiba Inu ecosystem structured?

The key element of the ecosystem is the SHIB token. The initial supply was 1 quadrillion, but a significant share has already been burned. At the time of writing, less than 60% of tokens are in circulation.

The ecosystem also uses Leash Dogecoin Killer (LEASH) and Bone ShibaSwap (BONE). They appeared well after SHIB. LEASH’s supply is 107,647 coins, all in circulation. BONE’s issuance totals 250 million tokens. At the time of writing, more than 6 million coins circulate.

BONE is the governance token. It is used to vote on ShibArmy proposals in 2022. The weight of each vote is determined by the number of coins held.

Ethereum’s advantages enabled a high degree of decentralisation for ShibaSwap. Specialists from various fields worked on the platform. The developers plan to make it the most popular and largest by trading volume on the network. A Web3 wallet such as MetaMask is suitable for interacting with the non-custodial venue.

The platform features the following sections:

• SWAP. Allows token swaps exclusively on the Ethereum network. The deepest liquidity is concentrated in pairs with the project’s coin.

• DIG. This section lets users add assets to liquidity pools. LP tokens are provided in return for deposits. Returns on deposits are claimed under the WOOF tab.

• BURY. A section for staking SHIB, BONE and LEASH.

• WOOF. Lets users stake LP tokens. Accrued rewards can also be claimed here. All payouts are in BONE tokens.

• NFTS. Information on SHIBOSHI non-fungible tokens.
• BONEFOLIO. Analytics on the platform’s metrics, including liquidity, current yields and other data.

Rewards on the platform are paid every 14 days as a single block. Distribution is among liquidity providers according to BPB (BONE Per Block). Initially, the reward was 1,000 BPB. Over time, it decreases according to the schedule below.

Part of the BONE tokens goes to a multisig wallet, forming a special fund. The funds are at the disposal of a group of OG admins. These members are ShibArmy “veterans”. They helped develop the project and protected it from threats. The admins act as managers for the developer team. They interact across various channels and create a safe environment in which the community is built.

Funds from the pool will reward community members who have contributed to the project’s growth. They will also be paid for contributions to the ecosystem’s development. A portion is allocated to marketing.

Who helped Shiba Inu succeed?

The project’s white paper says Vitalik Buterin is a friend of Shiba Inu. The creator holds this view: “there is no greatness without a vulnerable point, and as long as vB does not hurt us, SHIBA will grow and survive”. Hence half of the supply was sent to Buterin. This brought the memecoin wide attention.

In May 2021, Buterin sent 50 trillion SHIB to charity. A little later, for security reasons, he burned 410 trillion SHIB, which at the time were worth more than $6.5bn. This cut the total supply by more than 40% and had a positive effect on the price. 

In 2021, Elon Musk repeatedly moved the market with his tweets. His attention focused on the Dogecoin memecoin. That in turn sparked similar projects. Tokens using Dogecoin’s imagery respond positively to Musk’s tweets.

Initially SHIB saw little demand, but after several mentions by Elon Musk, interest in the coin rose sharply.

How does Shiba Inu differ from Dogecoin?

Both projects feature a dog as a mascot. Despite similar imagery, they differ significantly.

Dogecoin is a cryptocurrency created spontaneously. Technically, it resembles Litecoin. The identities of the project’s founders are known and they deliver improvements. A developer team oversees the cryptocurrency’s evolution. Dogecoin owes much of its price success to Elon Musk’s tweets.

Shiba Inu is built around the SHIB token issued on Ethereum. It is somewhat closed. A detailed roadmap is kept secret. Community leaders are known only by pseudonyms. Communication takes place in restricted groups, which only real people can join after verification.

What Shiba Inu clones exist?

Shiba Inu’s success exceeded all expectations. In 2021 the asset’s price rose 777,000-fold. At one point, SHIB’s market capitalisation, according to CoinGecko, surpassed Dogecoin’s. This spurred a multitude of copycats.

Tokens appeared that referenced Ryoshi by name, as well as nods to Elon Musk. Some projects attempt to copy the proposed concept. 

Shiba Inu’s roadmap is secret, fuelling speculation about future directions.

ForkLog is not responsible for readers’ investment decisions. Investing in cryptocurrencies—particularly in memecoins—entails high risks.

At the time of writing, the following meme cryptocurrencies are popular:

• Kishu Inu (KISHU). An ecosystem has been built around the token, including a non-custodial exchange. The coin is listed on various trading venues. A large share of trading occurs on Uniswap and ShibaSwap.

• Akita Inu (AKITA). The project is developing actively; the developers plan integration with Avalanche. The token trades on various exchanges, including Uniswap.
• Floki Inu (FLOKI). The token appeared recently but has already run an active advertising campaign. It is present on decentralised trading venues.