Learn Cryptocurrency
31 Jan 2022

Shiba Inu (SHIB) Explained: Complete Beginners’ Guide

Devansh Sinhal

Shiba Inu is a dog-themed token that rose in popularity in 2021, after Dogecoin, because of its dog-themed ecosystem. The reason it’s been on the news and…, practically everywhere, is the fact that it returned more than 49 million per cent of its value to investors in 12 months. 

49 MILLION. 

That’s 49 with six zeros. 

In one year.

In this blog, we’ll explore the coin, understand its history, its potential future, and other vital aspects that drove its growth in the past. We’ll also talk about whether this coin has any potential for growth in 2022.

Let’s dive right into it.

Understanding Shiba Inu

Shiba Inu is a coin that’s part of the dog-themed cryptocurrency ecosystem. Other cryptos in this theme include DOGE—which saw gains of 15,800% between January 1st and May 8th, 2021— KISHU, ELON, and FLOKI. 

Shiba Inu is an ERC-20 token based on the Ethereum blockchain. Its immense and sudden rise in popularity is attributed to speculation in price by retail investors during key market conditions, and very strong dog-community engagement.

For instance, the official Shib Twitter account has more than 2.6 million active users, which is leaps and bounds ahead of other established coins like Cardano, Solana, and Kraken.

Shiba Inu is often known by investors as a “meme coin” because it offers little to no real-world utility compared to other cryptocurrencies like Ethereum or Bitcoin. These coins are also more volatile than others, affected by arbitrary factors like icons (to wit, Elon Musk) or short-term news. 

Very little is known about the creator of the coin, much like Satoshi Nakamoto, the creator of Bitcoin. In the Shiba Inu whitepaper, dubbed the “WoofPaper”, Ryoshi characterises himself as “just some guy of no consequence tapping at a keyboard.” It is also believed that Ryoshi himself holds 0 SHIB to this day and that he derives his satisfaction from SHIB in different ways.

Key Takeaways

  • Shiba Inu was created in August 2020 by an anonymous person or group dubbed ‘Ryoshi’.
  • It has returned more than 49,000,000% to investors in the last year.
  • Contrary to popular belief, Shiba Inu actually does support some useful utilities in the NFT and DeFi space.
  • The network also runs a decentralised exchange called ShibaSwap, which provides a secure environment for crypto trading while remaining permissionless.

History of Shiba Inu

Shiba Inu was created in August 2020 by an anonymous person or group dubbed ‘Ryoshi’. It was named after the Shiba Inu, a Japanese breed of dog originating in the Chūbu region. The mascot of Dogecoin is based on the same dog.

Shiba Inu started off as an Ethereum-based counterpart of Dogecoin, and its success prompted the creation of a plethora of copies in 2021 such as BitShiba, Shiba Fantom, Shibalana, King Shiba, et cetera. Following its huge growth in a relatively short period of time, Coinbase, the largest U.S.-based crypto exchange, listed the coin on its platform in September 2021. This caused the coin to inflate by 40% in the next two days, bringing it into the spotlight again.

Shiba Inu Market Cap in 2022

Until 8th April 2021, the market cap of Shiba Inu sat comfortably at $0. While trading volumes fluctuated a lot every day, the market cap remained constant until 10th April, when the share suddenly jumped to almost $14 billion. The next ultra-high came on 29th October, when the market cap of Shiba Inu touched $41 billion, an almost 200% increase in a matter of months.

Since then, the coin has been steadily falling in both price and market share, sitting at $12.3 billion at writing.

How Does Shiba Inu Work?

Like most other cryptocurrencies, Shiba Inu operates on a completely decentralised network called the blockchain. The blockchain involves the use of a public ledger that tracks and manages transactions that occur using the crypto coin. Shiba Inu runs on the Ethereum blockchain, which means that it uses Ethereum’s safety and functionality under its own name.

The coin is divided into multiple tokens that help the ecosystem function smoothly:

  • SHIB – This is the foundational Shiba Inu cryptocurrency that can be used as a medium of exchange and a store of value.
  • LEASH – This SHIB token is limited to 107,646 coins. This is the coin that is used to provide staking rewards to users who stake their crypto to validate transactions through Proof of Stake.
  • BONE – Bone has 250 million units and it is a governance token that can be used to vote on various crypto proposals.

Shiba Inu vs Solana

There are various differences between Shiba Inu and Solana. Here are some of them:

  • Shiba Inu is often characterised as a “meme coin”, partly due to its inability to compete with other established coins like Solana in terms of fundamental utility.
  • Solana is one of the fastest-growing blockchain systems in the world, with more than 900 projects ongoing right now. Solana also allows the trade of NFTs on its platform, something that cannot be said for Shiba Inu.
  • Although cryptocurrencies, in general, are very volatile market instruments, charts show that Solana is less risky in the short term than Shiba Inu, partly because of the long-term utility of Solana in terms of application-focused research and development.

Future of Shiba Inu

Shiba Inu, as a token, is very different from other established cryptocurrencies in the market today. This is because of several reasons:

  • Its multi-token system comprising of LEASH and BONE,
  • Its heavy dependency on Elon Musk’s tweets,
  • It cannot compete fundamentally with most cryptocurrencies.

It is due to these factors that predicting the future of Shiba Inu is very difficult, perhaps even impossible. Hence, investors should invest in the token only if they believe in its long-term growth and they have the risk appetite to stomach Shiba’s violent fluctuations.

Benefits of Investing in Shiba Inu

Here are some benefits of investing in Shiba Inu:

What is SHIB

  • It has returned more than 49,000,000% to investors in the last year. It might have a lot of short-term potential in the coming future.
  • Contrary to popular belief, Shiba Inu actually does support some useful utilities in the NFT and DeFi space.
  • The network also runs a decentralised exchange called ShibaSwap, which provides a secure environment for crypto trading while remaining permissionless.

While nothing is certain, these factors could make Shiba Inu a profitable investment instrument for the future.

How to Invest in Shiba Inu in India

CoinSwitch provides for buying SHIB and hundreds of other cryptocurrencies in India. If you’re really excited to start your crypto investing journey by buying SHIB in India on CoinSwitch Kuber, we have a step-by-step process ready for you to follow.

Here we go!

Step 1: Open CoinSwitch

The first step is to, of course, download the CoinSwitch Kuber app on your Android or iOS mobile phone. You could also visit our website and enter your phone number, and we’ll SMS you a link to the app!

Step 2: Register and open an account

Once you have, you need to create an account on the app. Here are the steps that you need to follow:

  • Once the app has been successfully installed, you will be asked to enter your mobile number for OTP verification. 
  • Once the OTP has been received and entered by you, you will be asked to set a PIN on the app for added security. We encourage you to use random numbers that are hard to guess to secure access to the app. 

For any queries, please feel free to contact our Support Team here.

Step 3: Complete your KYC

If you want to start investing right away, you’ll need to complete your KYC (Know Your Customer) process. To complete this step, head on to the ‘Profile’ section of the app in the bottom right corner and click on ‘User Verification’.

  • Enter your name, PAN number, date of birth, and your email address for primary verification of your identity.

For more details on registering for CoinSwitch and the entire KYC process, check out our YouTube guide.

Step 4: Complete verification

It takes a moment for the app to register and verify everything, and once it’s done, we’ll send you an email to let you know. Voila! You’re ready to start trading/investing in your favourite cryptocurrencies now.

Step 5: Add bank details

To transfer funds from your bank account to the CoinSwitch app, you need to provide the app with the relevant details. These include your account number and IFSC code only.

CoinSwitch Kuber is one of the only crypto exchanges in the country that seamlessly allows you to transfer funds to the app by Net Banking or UPI. For Net Banking:

  • Transfer money to the given bank account details on the app through your preferred transfer mode. The funds will reflect in your wallet as soon as we receive them. The process may take up to 48 hours to complete.

For UPI:

  • Enter the amount you want to transfer and your preferred UPI ID
  • CoinSwitch will send you a request on your UPI app
  • Once the transaction has gone through successfully, your wallet will reflect the funds within 10 minutes.

If you’re stuck in any part of the process, our Support Team will be very glad to help you out. Contact them here.

Step 6: Buying SHIB

You’re all set! To buy SHIB or any other cryptocurrencies, click on the Market option at the bottom of your screen and search for the coin you want to buy. Once you’ve found the relevant coin, click and find the ‘Buy’ button on the bottom of the screen.

Enter the amount you want to purchase and ensure you have adequate funds added to your wallet. Once you’re all set, click confirm to buy SHIB. Voila!

You can see your crypto assets under ‘Portfolio’ on the app itself, along with other helpful information like total amount invested, percentage gains/losses, all the coins you hold, and even their profits/gains.

You can also buy SHIB by directly clicking this link or converting your SHIB to INR.

Frequently Asked Questions

How Much Is Shiba Inu?

Shiba Inu is worth $0.000022 at writing.

Can A Shiba Reach 1 Cent?

Since cryptocurrencies are highly volatile market instruments, predicting their prices in the long-term with any accuracy is very difficult.

What Was Shiba Inu’s Starting Price?

Shiba Inu was available at $0.00000007 per coin back in April of 2021.

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.

writer

Devansh Sinhal

Content Writer

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