Hey, are you into dog-themed memecoins and looking for something with a massive global presence and following? Well, if you are interested, CoinSwitch has now listed the hyped, famed, and controversial Shiba Inu token or SHIB for the traders, investors, and HOLDers.
Excited? We bet you are, but before you start looking closely at SHIB, here are a few things to take note of.
Shiba Inu and the Cautionary Stance? 10 Pointers to Know Beforehand
Planning to buy Shiba Inu? Well, here is what makes SHIB a famed, rewarding, and also a risky investment strategy:
Shiba Inu started as a joke or rather a retort to the already popular Dogecoin. And while it was more of a community-driven token signifying a meme, it quickly turned into a multi-billion dollar crypto project. The unexplained craze and insane valuations are the reasons for considering SHIB a speculative asset.
It is a Token, not a Coin.
Shiba Inu doesn’t have its Blockchain. Instead, it is a token on the Ethereum-blockchain. As for coins, DOGE and BTC have their own blockchains and, therefore, are considered coins. Not a big deal, though!
Shiba Inu’s official website listed SHIB as a Dogecoin killer for a long time. And the point here is that as Dogecoin mimics Bitcoin, it is still restricted when additional on-chain features like Smart contracts are concerned. SHIB boasts an Ethereum-powered lineage; it is a Smart Contract-capable token and hence a Dogecoin killer.
Supports Specific Defi Products
Yes, you read that right. As Shiba Inu supports smart contracts, it allows users to lend and stake out the same, letting them earn passive income as recurring fees. And you weren’t aware of this use case, were you?
Much like Bitcoin’s under-the-wraps creator, i.e., Satoshi Nakamoto, even Shiba Inu was envisioned and conceptualized by the anonymous Ryoshi. And it is still unclear if Ryoshi is an individual or a group behind this ecosystem.
While the SHIB token is the most highlighted element of the Shiba Inu ecosystem, the Ethereum-based network also features two other tokens in Bone (BONE) and Leash (LEASH).
Elon Musk’s tweet about getting a Shiba Inu dog, way back in March 2021, gave the first major push to the SHIB token, driving it up by close to 300%.
Contrary to popular opinion that a memecoin like SHIB is only hype and sentiment-driven, the ecosystem actually supports a handful of relevant utilities, including NFTs and a Defi-platform in ShibaSwap. And yes, you can still use it to make payments over the internet without going deep into the technicalities.
Volatile Penny Cryptocurrency
Despite the handy use cases, the total supply of close to 550 trillion, and a market cap well above the $19 billion mark, Shiba Inu continues to be a speculative crypto asset, albeit with a deflationary lineage. And as global exchanges continue to list this penny asset with a hint of caution, the volatility in the concerned space is more than obvious.
Therefore, it is advisable to DYOR before trading or investing in this high-risk asset to avoid getting Rekt.
The Vitalik Connection
Well, if you are vouching for SHIB knowing that Vitalik Buterin once held massive volumes of this crypto asset, read on. Shiba Inu evangelists anonymously sent almost half of the total SHIB supply to Vitalik Buterin as a marketing vigil. And while he sold out 10% and donated the amount to India’s Covid-relief fund, he burned 90% of the remaining supply by sending it over to an inaccessible wallet.
And that’s all about SHIB for now. While we could go on and on about the technical and use-case-specific aspects of this token, these are the ten pointers that you need to be aware of to understand the rage quotient, risks, rewards, and chances of getting rekt.
If you plan on investing in Shiba Inu (SHIB), we would recommend tons of research about the fundamentals and technicals before moving further. And while the current SHIBA Inu price of $0.00003478 (₹0.0028) might seem way too affordable, we would still advise caution before proceeding with SHIB or any other crypto asset for that matter.
Interested in learning fun bits about other crypto assets? Read more at CoinSwitch and understand the crypto space better than most.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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