Forex and currency

SHIBA coin project

SHIBA coin project
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Despite the fact that the SHIBA coin’s price is still less than one cent, it has managed to gain significant market share. Here’s everything you need to know about the Shiba Inu cryptocurrency idea.

The Shiba coin belongs to the Shiba Inu, or SHIB, a breed of dog-inspired by digital memes. According to the CoinMarketCap platform, this coin is presently the eighth-largest digital currency in the global market in terms of market capitalization, despite its low price.

This coin has had a 173 percent spike in the last seven days, gaining it a lot of attention and being dubbed “Dogecoin Killer” as a result.

Although the price of the Shiba coin is very low, allowing investors to purchase a large number of coins for a modest sum of money, investors should not invest in this coin unless they have a clear understanding of the project’s fundamentals and key characteristics.

This is how they may ensure that they comprehend what they’re investing in and how much risk they’ll have to accept.

Shiba Inu coin project

SHIBA coin project

The Shiba currency was established to answer the question of what would happen if a digital project was formed that was entirely administered by its community. The Shiba Coin project is described as a one-of-a-kind decentralized spontaneous community-building experience that allows its inhabitants to create something far more powerful than what a limited central team can create.

The Shiba Inu coin, abbreviated SHIB, is an ERC-20 denomination token based on the Ethereum blockchain. This coin’s popularity surged dramatically in 2021, owing partly to the project’s canine environment, which frequently captures the attention of regular investors and speculators.

This is in addition to the enormous and steadfast support that these currencies have from their own community.

Shiba’s official Twitter account, for example, has over 2.3 million followers and exemplifies this community support. This far outnumbers the followers of major coins like Cardano, Kraken, and Solana.

Learn more about the fundamentals of Shiba currency here: Shiba digital money

The Shiba currency was inspired by the Japanese dog breed of the same name, which is why it is categorized as a meme [1], along with Dogecoin and hundreds of other digital assets inspired by pets.

When opposed to other currencies, such as Bitcoin or Ethereum, memes typically have little or no power to provide their owners with little or no interest.

In the case of the Shiba project, it appears that the development team is making a genuine effort to deliver more value than benefit to Sheba’s owners. The decision to build a decentralized exchange, ShibaSwap, in July is the clearest example of this.

Notably, Shiba, the self-proclaimed Dogecoin killer, became the market’s second most popular meme as a result of this project’s ambition to deliver more benefits to consumers. Although the market value of Dogecoin significantly exceeds that of the Shiba currency, the initiative on which the Shiba currency is founded has assisted it in creating and building a vast community of supporters and enthusiasts in less than two years.

The Shiba currency’s main characteristics

Aside from being a widely popular meme, Shiba has several excellent traits that set it apart.

The first thing that stands out about Shiba’s coin is its fixed total quantity of one quadrillion coins. Around half of the Shiba token supply in the Uniswap liquidity pool for the SHIB and ETH currency pairs has been depleted. It is a decentralized exchange in which users deposit pairs of assets into liquidity pools on which other investors can trade. This is known as an automated market-making system.

The remaining 50% of the Shiba supply had earlier been donated to Vitalik Buterin, the founder of Ethereum, who cremated the majority of it by transferring it to a dead wallet. During the COVID-19 pandemic, he donated the remaining tokens (worth $1.2 billion at the time) to relieve India.

The Shiba Coin Project team plans to build a private useless token marketplace that will support a diverse range of creative and artistic styles and genres. Despite the fact that numerous musicians have indicated a wish to be a part of this effort, nothing has been publicized as of yet.

Another unique feature of the Shiba coin is that its community is actively supporting a Shiba Inu rescue mission in an innovative and practical way.

Given all of the measures undertaken by the project team in the technological and social domains, it is apparent that the Shiba digital project has genuine intentions to serve its community and support base. Investor sentiment-driven speculation may have affected Shiba’s significant price fluctuations. While this is true for all cryptocurrencies, it is especially true for memes associated with popular culture.

What exactly is ShibaSwap’s Decentralized Exchange?

Shibaswap, like Uniswap, is a decentralized peer-to-peer exchange that allows users to trade Shiba and other cryptocurrencies without going through a middleman. Users can also provide liquidity (deposit funds into pools that other traders can use to trade against) and stock tokens (deposit them into a smart contract) to earn interest using Shiba tokens.

The impact of Elon Musk on the Shiba coin project

The Shiba Inu first failed to attract investor interest, but after the CEO of Tesla and other famous figures expressed interest in it following its inception, it began to gather interest. Dogecoin has piqued my curiosity.

Musk, a tech millionaire, was one of Dogecoin’s most ardent supporters until he was nicknamed the coin’s “godfather” and named the project’s new unofficial CEO. Musk intimated that he might mention Dogecoin during his performance on “Saturday Night Live” in May. As a result of this, Dogecoin prices skyrocketed following the program, increasing the value of Shiba Inu.

Shiba’s price had climbed more than 2,000 percent but suddenly fell in tandem with the market crisis, which was precipitated by Elon Musk’s statement that Tesla would no longer take bitcoin as payment.

Following Musk’s declaration that Tesla will not take bitcoin as a form of payment, the coin’s price plummeted, triggering a market-wide crash. When Musk tweeted a photo and the name of his new Shiba Inu puppy in the first week of October, the Shiba’s value skyrocketed. Between January and October, the currency increased by more than 27,000,000 percent.

Risks of investing in the Shiba currency

Boneparth, a bitcoin investor since 2014, believes that altcoins such as Sheba are community-based, meaning that their success is mostly decided by the success and growth of their community rather than what is offered, as reflected in its blank. According to the paper, the primary goal of the Shiba Coin project is to create a decentralized spontaneous community. [2]

Experts always warn that investing in cryptocurrencies carries a high risk of losing all of your money and that regardless of which cryptocurrency you choose, you should only invest what you can afford to lose. Altcoins, on the other hand, may necessitate extra caution due to their significant volatility.

Bitcoin, for example, was created in 2009 to be used as a peer-to-peer financial system, and its blockchain has been meticulously built with a thoughtfully designed ecosystem. Furthermore, Bitcoin’s supply is limited, which increases its value owing to the scarcity factor. As a result, Bitcoin is seen as a store of value by its owners, who also believe that it will remain a prominent decentralized digital currency in the future.

Read more: Among the best ways to get bitcoin in 2022

Alternative currencies, particularly memes like the Shiba, are devoid of almost all of these characteristics. Shiba supporters argue that the ecosystem, which includes the ability to use smart contracts, non-fungible tokens, NFTs, and opportunities to mine for liquidity, is a real benefit to the community.

“Many altcoins can carry significant levels of risk and may not have any inherent investment value,” warns Brett Harrison, Head of FTX US Digital Exchange, “so investors should be careful not to trade these assets without doing the necessary research beforehand.”

Rather than investing in a quickly rising digital currency and following the trend and hype, seek digital currencies that have real-world applications.

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