What Is Shiba Inu & How Does It Work? Who Created SHIB? (2024)

What Is Shiba Inu?

While Bitcoin has certainly achieved great things, a centralized society still dictates how we conduct most of our day-to-day lives. Launched in August 2020 by an anonymous person known as Ryoshi, Shiba Inu is the first token run 100% by its community that aims to create a decentralized standard.

According to the token’s Woofpaper, cryptocurrencies that fail to maintain their own independence face a fragile existence. Starting with nothing, the Shiba Inu community, known as the Shib Army, is attempting to see if decentralization can truly work when a coin has no centralized team, no funding, and no direct leadership.

SHIB is the token for Shiba Inu and following its launch, Ryoshi sent 50% of the token’s supply to Ethereum founder, Russian-Canadian programmer Vitalik Buterin. The remaining half is locked for liquidity on Uniswap, a decentralized finance platform. Notably, Buterin burned 90% of his SHIB tokens in May, worth roughly $6.7 billion at the time, with the remaining 10% sent to an India COVID-19 relief fund that Sandeep Nailwal, a Polygon founder, set up. Shiba Inu developers had not planned on Buterin burning or donating his tokens. Hence, the relief fund needs to determine how it will use the donations without creating too much disturbance for the Shiba Inu price.

How Does Shiba Inu Work?

The SHIB coin is an ERC-20 token powered by Ethereum. As it runs on the Ethereum network, Shiba Inu can leverage smart contracts to create decentralized finance products. The Dogecoin Killer plans on entering the DeFi space, which has gained momentum after seeing protocols rise in price and adoption, through its decentralized exchange and artist incubator. The incubator will enable artists to use Ethereum’s network for auctioning off non-fungible tokens with smart contracts, creating an NFT market that removes the need for third parties.

Once Shiba Inu launches its DEX, ShibaSwap, users will be able to stake their coins for BONES. According to Shiba Inu’s website, BONE, touted as another Dogecoin Killer, is their next asset, which will take the power of DeFi to higher levels. Details of how to acquire BONE will be announced at a later date.

Once available, the only way to mine BONES will be by staking SHIB on the ShibaSwap platform. Those who stake SHIB will earn interest. The third flagship asset on ShibaSwap is LEASH, which will have a total supply of only 100,000 coins. This is available on Uniswap.

Shiba Inu also plans to launch an NFT project, releasing ShibaSwag and actualizing real-world applications beyond the digital landscape.

Who Are the Founders of Shiba Inu?

Shiba Inu was created in August 2020 by the pseudonymous Ryoshi. Few details are known about the person behind Shiba Inu except his Twitter and Medium accounts. In a Medium post from May 2021, Ryoshi states that “I am nobody. I am not important. The efforts to unmask my “identity” even if successful would be underwhelming. I am just some guy of no consequence tapping at a keyboard, and I am replaceable. I am Ryoshi.”

That, however, hasn’t stopped people from speculating as to the real identity of Ryoshi. On Reddit, for example, a user by the name of No_Mulberry4575 pointed out that Ryoshi had posted a photo that included Buterin hanging out in Japan with Karl Floersch, who specializes in the development of blockchain systems, focusing on Ethereum. If true, and given that Buterin received 50% of the SHIB supply, then the Reddit community believes the Ethereum team is involved with Shiba Inu.

In its relatively short existence, Shiba Inu has garnered strong support. Its website states that it has a growing community that currently features over 480,000 people; it has more than 70,000 followers on Twitter, and over 3,000 on Medium.

What Makes Shiba Inu Unique?

The Dogecoin Killer is unique because its project is run by the Shiba Inu community, who truly believe in a decentralized system that removes control from centralized authorities. This is backed up by its Woofpaper, which states that through “collective decentralization”, they can build something far better than a centralized team could create.

Beginning its life as an experiment in decentralized community building, Shiba Inu started from zero with zero. With no funding, no centralized team, and no direct leadership, Shiba is attempting to see if decentralization can work when it is fully community-driven instead.

Shiba Inu has launched a community effort that uses the Amazon Smile feature to collect and distribute a percentage of Amazon purchases to the Shiba Inu Rescue Association as donations. By donating to the Shiba Inu Rescue Association, the community can help find ways to assist these dogs, which can be overwhelming for new owners who find the dogs brave, intelligent, and stubborn.

Shiba Inu is also calling dog-inspired artists from around the world to join its artist incubator. By doing so, it’s hoped that artists will promote the artistic Shiba movement, helping to push Shiba Inu into the NFT market.

What Gives Shiba Inu Value?

In addition to its decentralized nature, Shiba Inu presents several factors that add to its overall value.

In a bid to see if Shiba Inu has true value and support behind it, Ryoshi locked 50% of the coin’s 1 quadrillion supply into Uniswap. The remaining 50% were sent to Buterin. In the coin’s Woofpaper, Ryoshi wrote that “there is no greatness without a vulnerable point and as long as VB doesn’t rug us, then Shiba will grow and thrive.”

Using Ether, the native asset for Ethereum, Shiba Inu can establish the perfect foundation for ShibaSwap, where users can buy, HODL, sell, and trade to gain rewards, outperforming the value of other staking platforms.

Additionally, as ETH 2.0 gets ready to move the blockchain from its current Proof of Work consensus mechanism to Proof of Stake, it will bring cheaper and faster transactions with it. As a result, ShibaSwap could potentially become one of the most popular and highest volume decentralized exchanges as it focuses on ERC-20 tokens and the Ethereum blockchain.

How Many Shiba Inu (SHIB) Coins Are in Circulation?

Shiba Inu states on its website that the total supply of SHIB is 1 quadrillion. Of this number, 50% are locked up on Uniswap, a decentralized finance platform, and the remaining 50% were gifted to Vitalik Buterin at launch. Data suggests that the circulating supply of SHIB is currently and its market cap is EUR.

Shiba Inu will have three flagship coins to its name: SHIB, BONE, and LEASH. SHIB and LEASH are currently available, with BONE due to be released at a later date. According to the website, users will use SHIB to dig for (farm) or bury (stake) their BONES. The best trainers will also teach their Shiba to swap one coin for another.

By digging and burying SHIB, users will generate returns which are distributed to the Puppy Pools, where users have either buried or are digging for their SHIB.

Other Technical Data

The LEASH asset was originally pegged to be a rebase token for the price of Dogecoin. This was later changed so that it could continue as an independent ERC-20 token. Compared with 1 quadrillion SHIB, there will be just over 100,000 LEASH coins minted. The low supply and the demand for it will increase rewards for holding the asset.

Anyone holding BONE will be able to get it from the ShibaSwap exchange, and there will only be 250,000,000 in existence. It will also act as a governance token, enabling the community to vote on proposals for 2022. The more of this asset that users hold, the more weight their vote carries.

How Is the Shiba Inu Network Secured?

The Shiba Inu network is secured through the process of staking SHIB. It’s also based on the Ethereum network, which currently employs the Proof of Work consensus mechanism. However, PoW is time-consuming and energy inefficient. This is why Ethereum is upgrading to Proof of Stake, bringing with it cheaper and faster transactions for the network.

Unlike PoW, which requires computers to compete against each other to process transactions and receive rewards, PoS reaches a consensus through an algorithm that picks a node to win a block of transactions. These nodes are known as stake pools.

How To Use Shiba Inu

Many see SHIB as an investment vehicle, an asset to buy and hold, as the token is designed to be able to outpace Dogecoin in terms of growth without even reaching $0.01. The launch of the ShibaSwap exchange will bring broader utility to SHIB as it will enable holders to stake (bury) and farm (dig) their tokens. The Shiba project as a whole also has other functions, such as rescuing real Shiba Inus through its Amazon Smile campaign and bringing the artistic Shiba movement to the NFT market through the artist incubator.

How To Choose a Shiba Inu Wallet

The type of wallet you choose for holding Shib will vary depending on how much you need to store.

Users have a choice of cold wallets (offline) or hot wallets (online). Cold wallets, such as Ledger or Trezor, are the most secure as they aren’t connected to the internet, so there’s no way they can become vulnerable to hacks. They look like a type of USB stick that plugs into the side of a computer. Cold wallets can be a bit expensive and inconvenient, but they provide the added security for users who hold large amounts of crypto.

Hot wallets are less secure as they’re connected to the internet at all times. These types of wallets are convenient as they can be accessed at any time when someone is online. If you’re using a hot wallet, pick a trusted service with a strong reputation for maintaining security and custody.

Kriptomat offers a secure storage solution, allowing you to both store and trade your SHIB tokens without hassle. Storing your SHIB with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling SHIB, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Shiba Inu Staking

Shiba Inu runs on Ethereum, which currently uses the Proof of Work consensus mechanism but is in the process of transitioning to Proof of Stake. However, the total SHIB supply was minted when the project launched, so the token can’t be mined..

The launch of the ShibaSwap exchange will introduce SHIB staking. SHIB holders will be able to stake (bury) their SHIB in return for xSHIB, which represents their original SHIB and and any staking rewards earned, paid out in the soon-to-launch BONE token as well as 0.3% of all ETH swap transaction fees on the exchange.

Final Thoughts

Shiba Inu is one of the latest DOGE-inspired coins to hit the market and is yet to reach any significant milestones. Despite this though, it’s attempting to make history by ensuring that decentralization is the standard for our daily lives.

Run 100% by its community, Shiba Inu is finding out how successful a project can be that doesn’t have a centralized team at its core – and this is only the start. Shiba Inu also intends to boost the non-fungible token market through its artist incubator, while demonstrating the benefits of decentralized spontaneous community building through its three flagship assets: SHIB, LEASH, and BONE.

Whether it will be the killer of Dogecoin remains to be seen; however, it’s certainly going out of its way to achieve that goal.

Shiba Inu FAQ

How To Buy Shiba Inu

Buying SHIB is as easy as visiting Kriptomat’s how to buy Shiba Inu page and choosing your preferred method of payment.

How To Sell Shiba Inu

If you already own SHIB and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Shiba Inu Price

As with the entire crypto market, there will be moments when prices rise, and there will be moments when they fall. This fluctuating price is down to the fact that people worldwide are buying and selling at any given moment.

As well as traditional factors such as the flow of cryptocurrency on exchanges and the broader crypto market and economy, SHIB price will also likely be influenced by attention on social media and project developments such as the launch of ShibaSwap.

The current Shiba Inu price is EUR.

The 24-hour trading volume of SHIB is EUR. SHIB is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of SHIB.

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