What is the Shiba Inu coin? Is there anything real behind his impetuous rally?

What is the Shiba Inu coin? Is there anything real behind his impetuous rally?

Altcoin season is upon us again, although most are selling off on Wednesday, and an unsuspecting frontrunner continues to set new records: shiba inu.

The meme token, which appears to have come out of nowhere, is now trying to take over from dogecoin to become the 10th largest digital asset in the cryptocurrency ecosystem.

Shiba inu rose as much as 45% on Wednesday to a new intraday high of $ 0.0006220, according to data from CoinGecko , bringing its earnings over the past month to nearly 710%. With a market value of $ 30.9 million, it is the 11th largest crypto asset.

But what is shiba inu in the first place?

Shiba inu is an ethereum-based alternative to dogecoin, a meme token preferred by the likes of Elon Musk and Mark Cuban. It even calls itself a killer dogecoin and, as a dogecoin, it also features the Shiba Inu dog as a mascot.

The token was founded in August 2020 by someone named Ryoshi whose goal was to move away from “rigid social structures and traditional mindsets,” according to its 28-page white paper, or in the case of shiba inu, woof paper.

Instead, shiba inu was meant to be “an experiment in building decentralized spontaneous communities” and giving power back to the “average person”.

So why is it gathering?

A couple of reasons. Wednesday, the price increase could be attributed to one online petition on Change.org which got more than 300,000 signatures asking Robinhood to be the first mainstream broker to list the shiba inu coin.

Recently, shiba inu also released a series of non-fungible tokens called ” shiboshis Which are written on the ethereum blockchain. Some of these feature shiba inus wearing a party hat or have laser eyes.

And in May, the coin made headlines when ethereum co-founder Vitalik Buterin donated 50 trillion (thus worth around $ 1 billion) to a cryptocurrency-based COVID-19 relief fund for India.

Other than that, it’s actually just the Shib Army that is rallying behind the coin.

“The cryptocurrency universe is filled with coins that represent different use cases and themes,” John Wu, president of Ava Labs, the team behind altcoin avalanche, told Insider.

And meme tokens, he said, “are culture-driven and represent an underlying theme or movement, rather than special technical use cases.”

So does that mean shiba inu doesn’t have a real use case?

It’s hard to say, at least for now. Wu said shiba inu “wasn’t created with a sophisticated use case like borrowing, lending, swapping, or playing,” but it’s trying to be useful.

Since shiba inu is written on the ethereum blockchain, this could suggest it has more advanced smart bargaining capabilities, Wu said. One example is Shibaswap, a platform launched in July 2021 that aims to provide utility for the token in terms of staking and rewards.

It is worth noting that shiba inu was not designed to have a limited supply and currently has 1 quadrillion coins in circulation, while bitcoin, for example, is limited to 21 million.

How much does a shiba inu cost?

If you think dogecoin at $ 0.244775 is cheap, wait until you hear how much shiba inu costs. The coin is trading for just $ 0.00006289. So owning 1 million shiba inu coins will only amount to $ 62.89.

But we already know that nominal price is not the best way to measure the attractiveness of a cryptocurrency. Instead, it’s the future use cases of the asset and the potential it brings. And having a passionate community behind it doesn’t hurt either.

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